Transferring Employees

HLJ
HLJ Member Posts: 8 Novice Member Novice Member
in Reckon Accounts (Desktop)

Hi

We have a new business restructure which happened this FY. I transferred all the employees bar one (who will remain with company 1), the remainder were all transferred over with entitlements to company 2 and all has been well from there.


Just about to terminate the employees that were transferred to company 2, in company 1 and thought perhaps i best ask if that is the right thing to do? I just had a doubt as I was about to do it.

Any advice would be wonderful


Thank you in Advance

Best Answer

  • Rav
    Rav Administrator, Reckon Staff Posts: 14,205 Reckon Community Manager Community Manager
    edited June 2023 Answer ✓

    Hi @HLJ

    Does the new business (company 2) have a new/separate ABN from Company 1?

    How did you transfer the employees from one company to another? What happened to the employees in company 1 after they were transferred? ie. did you just stop creating pay runs for them?

Answers

  • HLJ
    HLJ Member Posts: 8 Novice Member Novice Member

    Hi Rav

    Yes, a different ABN for Company 2

  • HLJ
    HLJ Member Posts: 8 Novice Member Novice Member

    I transferred them across as advised using export lists.


    I stopped paying them in the Company 1 and began paying them in Company 2

  • Rav
    Rav Administrator, Reckon Staff Posts: 14,205 Reckon Community Manager Community Manager

    Ok cool, thanks for that. Then yes you should be fine to go ahead and terminate them under Company 1. Doing so will finalise them under Company 1's ABN and set them to tax ready in MyGov for the earnings accrued under that entity.

  • Kris_Williams
    Kris_Williams Member Posts: 4,277 Reckon Hall of Famer Reckon Hall of Famer

    Terminate them as of the date of their last pay

  • HLJ
    HLJ Member Posts: 8 Novice Member Novice Member

    Thanks Rav and Kris for your responses. Good to know my thought pattern on this was on the right path


    Appreciate your help

Categories