As an organisation you will need to record a termination reason when terminating an employee, which has become mandatory on the Payroll classic platform from the 19th October 2021. It means that there may be some terminated employees without a reason recorded on Payroll classic. You must record a termination reason for any employee you terminated in the 21/22 financial year. A termination reason can also help with any administrative duties, such as reporting on your organisations termination reasons.
#### Important
If you do not record a reason, any Single Touch Payroll (STP) event that includes a terminated employee with no termination reason will fail validation. It means you cannot lodge the event with the Australian Tax Office (ATO) until you rectify this situation.
# Record a Termination ## Employee file
You can terminate employees who are no longer employed and do not require a termination pay but still exist as an active user on your platform via the employee file. First, navigate to their employee file and click on the Details button. Next, scroll to the bottom of the screen and click on the Terminate Employee button; lastly, you will enter the termination date and select a termination reason.
If you have already marked an employee as terminated, you can still record a reason by navigating to their file and clicking on the Details button. From there, scroll to the bottom of the screen where you will already see the employee's termination date. Next, you will need to click the button and then click the Add Termination Reason button.
## Pay run
When an employee has ceased employment and a termination pay is due, you can
add the termination reason via a pay run. To read further information on how
to undertake this process, refer to the following
## CSV file
If you want to bulk add a termination reason for previously terminated employees, you can do this by clicking the Data Extracts button within the Payroll Settings module. Next, choose the Template with Employee Data (including terminated employees) data type and click the Download button. It will make sure you include terminated employees in the CSV file. You can distinguish who the terminated employees are, as there will be a date in the EndDate column.
Next, navigate to the TerminationReason column and select the termination reason from the drop-down list. Once you have completed adding the reasons to the file, you can then import back into the platform by clicking the Import Employees button within the Payroll Settings module.
## API
Refer to
# Explore related content
Key points
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This article walks through some of the frequently asked questions around termination reasons we receive from our customers.
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