Termination Pay

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  • Question
  • Updated 4 years ago
  • Answered
Hi, what's the best way to do a termination pay in Reckon One? Do we need to setup an Unused AL pay category or does the system have a built-in feature?
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Jen

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Posted 4 years ago

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Kevin Russell, Accredited Partner

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Why do you need an unused annual leave category at all? Just pay out the annual leave
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Jen

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Annual leave continues to accrue leave, and super is payable on it, whereas unused AL on termination does not accrue leave or super, so you would need to manually adjust everything, including the final tax withheld figure.
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Jen

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Okay, I rang support and it seems pretty straight forward. Complete the final pay as usual if including in a scheduled pay run, then go to the Employee record > Employment > Important Dates and enter a termination date. A pop up wizard will appear to guide you through the final pay run and calculate unused AL to be paid out, and calculate the adjusted tax withheld.
Note it didn't calc the AL balance to include the final pay run in my case, so I manually adjusted.