Employee Termination & Final Payment

Miks88
Miks88 Member Posts: 30 Reckoner Reckoner
in Accounts Hosted

Good morning,

I have to do the final payment to the 2 employees resigning. They have already served the notice period, and they have some annual leave balance. Also, they are entitle for the long service leave (LSL). I have calculated their LSL by using the WA long service leave calculator. Can anyone help me with the followings:

  1. Recording unused leave in Reckon
  2. Recording LSL in Reckon

Your assistance will be highly appreciated.

Thank you.

Answers

  • Tanvi_kataria
    Tanvi_kataria Reckon Staff Posts: 516 Reckon Staff Reckon Staff

    Morning @Miks88

    Please check this out - Terminating an employee in Reckon Accounts - Reckon Help and Support Centre

    I hope this helps, please feel free to reach out if any concerns. Thank you!

    Regards

    Tanvi

  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    you will have to create a payroll item for LSL and enter the balance according to the leave calculator. If the annual leave isn’t already in payroll you will have to put it in there as well first.

  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner

    Thank you Tanvi and Kris. Can you also please show me the steps of creating LSL and Unused leave in Reckon Accounts Hosted.

  • Tanvi_kataria
    Tanvi_kataria Reckon Staff Posts: 516 Reckon Staff Reckon Staff

    Hi @Miks88

    Check this out - Processing Long Service Leave in Reckon Accounts - Reckon Help and Support Centre

    The same process will be for other leave items, if you have to create any. Please let us know how you go or if any concerns. Thank you!

    Regards

    Tanvi

  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner

    Thank you Tanvi for your assistance

  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    Have you got a payroll item setup for annual leave?

  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner

    Not yet Kris… I have not done the set up for both LSL and AL…Will let you all know in this forum once I complete. Thank you very much for your help

  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    you’re very welcome @Miks88

  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner

    Hi everyone,

    Can anyone please share the screenshot having both LSL and Unused AL. And, do we need to pay the final payment with the final wages. Our pay day is tomorrow. Do I need to pay the wages along with the LSL and unused AL? You guidance will be very much appreciated.

  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    you can pay the leave at a later date. You can call me if you wish

    0415940843

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,115 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    Hi @Miks88

    This screenshot is specifically a sample redundancy pay so you won't need the ETP-specific ones that are on here. However it also shows an example of the unused AL & LSL components:

    image.png

    NOTE: PAYG applies but NO leave accruals or super are applicable on unused leave paid out! (UNLESS specified otherwise in your relevant Award/Regd Agreement etc)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner

    Hi

    https://community.reckon.com/discussion/comment/20658022#Comment_20658022

    Thank you Kris

    https://community.reckon.com/discussion/comment/20658036#Comment_20658036

    Thank you Shaz. That means I need to create separate items for unused AL and LSL?

  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    yes, I use the items already there I don’t necessarily make new ones for unused, depends on your setup

  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner
    image.png

    I have this…Can I book the unused leave under holiday hourly ?

  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    that’s what I would use, however you have to decide if it has leave loading on it and see what that holiday hourly comes up with. And you would have to tick the box that says don’t accrue time - I haven’t used that before but I believe you will have to tick it or you will end up with a small balance. Tick it and see if the accrued holiday above it disappears

  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner
    1. I had the AL balance
    image.png

    2. I typed the Al balance of 85.39 in the Earning section. It gives me the warning message ‘The leave entered exceeds the available hour. Do you want to continue? I clicked ‘Yes’. Got the following screen

    image.png

    3. If I tick the 'Do not accrue time', i get the following screen

    image.png

    Is this correct? There is no AL loading.

  • Miks88
    Miks88 Member Posts: 30 Reckoner Reckoner

    sorry. Below was my first screen

    image.png
  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    You have to determine if they are entitled to leave loading, if not I would untick do not accrue time. And use no 3

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,115 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited August 28

    Any Unused Leave paid out on Termination - as well as any Leave cashed out - needs to be set up as as separate Payroll Items to the ones used for ordinary leave taken.

    This is because there are separate STP Tax Tracking categories for these:

    image.png

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    ok Shaz thanks for that I wasn’t aware

  • Kris_Williams
    Kris_Williams Member Posts: 4,184 Reckon Hall of Famer Reckon Hall of Famer

    Sorry @Miks88 to give you a bum steer regarding payroll items

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