Available for the following plans: Employment Lite, Employment Plus, Employment Unlimited
Available for the following HR classic plans: Standard, Premium, Platinum
Available for the following Payroll classic plans: Standard, Premium
Available for the following user access level: Admin
If your organisation's Employment Hero account is connected to the Employment Hero Payroll classic platform, it is easy to terminate an employee.
You only have to terminate them on Employment Hero and put the correct Payroll Cut Off Date. This information will then sync over to the Payroll classic platform, where you can create the pay run. The leaver will automatically be included in this pay run, and their pro rata earnings calculated.
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What you need to do
Important
Before off-boarding an employee, create an offboarding checklist of the tasks that need to be completed before the employee's termination date. To learn how to do this, please refer to this article: How do I set up my organisation's offboarding checklists?
After that, you can offboard the leave on Employment Hero. To terminate your employee on Employment Hero, please follow these steps:
- Log into Employment Hero.
- Click the People (people icon) menu on the purple side bar.
- Click the Employees List submenu.
- Click the Employees tab.
- Click the Actions dropdown button next to the leaver you need to offboard.
- Click Offboard Employee.
- Complete the following fields:
- Termination date.
- Termination type.
- Comment.
- Employee access.
- Payroll cut-off date:
- Click Custom date.
- Choose today's date for Cut off date.
Important
The Payroll Cut Off Date must be today, regardless of the termination date. For example, if it is 19th June today, the Payroll Cut Off Date must be "19/06/2024."
This information prompts the payroll classic to include this employee termination in the pay run.
Warning
If you do not enter today's date in the Payroll Cut Off Date, Employment Hero cannot inform the Payroll classic platform that this employee is being terminated. The Payroll classic platform will not be able to calculate the correct pro-rated salary for the employee.
- Click the Terminate button.
- You can complete the next steps on the payroll classic platform. Please refer to Step 2 in this article.
The termination you processed on Employment Hero will automatically sync over to the payroll classic platform. Pro-rata calculations will also be automatic.
To process your pay run which includes the terminated employee, please follow these steps:
- Log into Employment Hero Payroll classic platform.
- Click the Pay Run (hand icon) menu on the black side bar.
- Click the Pay Runs submenu.
- Click the New Pay Run button.
- Complete the following fields:
- Pay schedule.
- Pay period ending.
- Date pay run will be paid.
- Tick the Include terminated employees checkbox.
Important
Ticking this checkbox will include the leaver to this pay run.
- Import timesheets.
- Click the Create button.
Helpful Hint
You can see under Gross Earnings that their salary has been pro-rated automatically and correctly. You do not have to compute this number manually anymore.
The salary pro rata calculation here is based on the configuration you have selected in Pay Schedules in Pay Run Settings. To learn more about this, please refer to this article: How do I set up pro rata calculations for starters and leavers?
Also, any leave categories that are not excluded from the termination pay will be paid out in the pay run. To learn more about this, please refer to this article: How do I manage leave categories?
- Click the Finalise Pay Run button.
- Complete the following fields:
- Date paid.
- Journals
- Publish documents.
- Click the Finalise button.
Further information
If you do not use today's date for the Payroll Cut Off Date, Employment Hero will not be able to inform the Payroll classic platform of the termination. This means the pay run will still show the employee's full salary.
From 15 August 2024, any employee made a leaver with a termination date that is within a processed pay run will be automatically included in the next pay run. The employee will also be reported to HMRC as a leaver.
The best way to delete these pending tasks is by following the process below:
- Click the Dashboard (Home) menu.
- Go to your To-do list widget.
- Click the elipsis.
- Click View all tasks.
- Click the Other Tasks tab.
- Type in the name of the terminated employee to the search function.
- Select all the tasks you want to delete.
- Click the Actions button on one of the tasks.
- Click Delete.
Explore related content
- How do I report on unpaid employees ? This feature allows you to create a report that covering the details on the last date your non terminated employees received payment via a pay run within your payroll classic platform.
- How do I report on pay run inclusions? This feature allows you to create a report on the inclusions your organisation has processed within your finalised pay runs, with the ability to narrow this data down by employing entity, pay schedule and location.
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