Within the payroll file at times you may need to reverse a termination payment due to needing to change the termination payment type or other factors.
Reversing a termination needs to be done carefully and correctly or you can have issues with your STP reporting.
Due to termination payments having different codes when being reported to the ATO it is important that you reverse exactly as per the original payrun.
Steps on how to reverse a termination Pay run:
Reverse a Termination Payment
- Log in to your payroll platform.
- Create a new Pay Run with the same pay period and PAID dates as the original pay run
2. Add the Employee to the pay run
Search the Employee in the below section and add to pay run.
Reverse a Termination Payment (part 2)
- Terminate the Employee by going Actions> Terminate Employee. The system will normally populate the last termination date and reason:
Reverse a Termination Payment (part 3)
- Check the Original Termination to reverse out the pay run earnings exactly as required. Taking a screenshot or having this open on another tab is great to help you with this.
For the below, we will be using the termination below and reverse this from a Type R to Type O Payment.
Reverse a Termination Payment (part 4)
- Add in the negative amount:
As you will see from the above, the figures are not the exact same as the original pay run. If this occurs tick override calculations:
This then allows the following fields to be editable:
In the instance of reversing the Type R to Type O:
As the below Type R lines are the exact same figures as the Original pay run, this means that the Original Type R lines are now reversed:
Click Actions> Add Type O:
Add the Type O payment line:
The above is now an example of what a termination reversal will look like.
Finalise the adjustment pay run and create the STP pay event. This updates the YTD in the platform.