Process a Normal Termination (Resignation)

This article is about Humanforce Payroll. For help with Humanforce Workforce Management, start here.

Humanforce Payroll allows you to process resignations, redundancies and termination enquiries in compliance with ATO requirements. In this article, you'll find the steps for processing a resignation.

Before you begin, authorise and process any timesheets for the terminated employee in the current pay period within Humanforce WFM, and send the timesheets to Humanforce Payroll. You can create an out-of-cycle payrun for only the terminated employee/s in Humanforce WFM for this purpose, if needed. 

Step One: Identify the Termination Date

If the termination date is today or in the future (but within the Period End Date) proceed straight to Step Two below.

To process a termination with a termination date in the past, complete the following steps:

1. Go to Employee > Employee Maintenance and find the employee by selecting the relevant payroll name.
2. Click the employee's row to open the edit screen.
3. Click the Employment tab and enter
   1. Termination Date
   2. STP 2 Termination Type and
   3. Termination Reason.
4. Click Update.

Note: You will not be able to process a termination that occurred in the past if you 
have not entered the Termination Date.

You can now see Date Terminated in the Employee List for the terminated employee. The employee will stay visible in this list until the payroll has been Authorised. Once it has been Authorised the terminated employee will be hidden. To view any terminated employees in the Employee List, click Show All. 

The Termination Date (not Type or Reason) will also be sent to Humanforce WFM, the next time your employee import task is scheduled to run (typically daily). If you need to run the employee import task immediately (to update the Date Terminated), head to Humanforce WFM > Integration Central, locate the relevant task and click Run. 

Step Two: Create the Termination

1. Go to Payroll > Payroll Processing > Termination and click the icon.
2. Select the employee from the list.
3. In the Termination Nature field, select Resignation 
4. Enter in the Termination Date
5. Check the Normal Gross Earnings. If it shows as 0.00, manually enter the figure (see note below for more details) 
6. Click Create.

Note that the Normal Gross Earnings is used by Humanforce Payroll to calculate the Marginal Tax Rate. Entering the Normal Gross Earnings gives you the ability to override the figure should you think the Marginal Tax Calculated is incorrect. For example, where an employee is terminated at the beginning of the financial year and does not have any YTD figures, you can enter the Normal Gross Earnings figure by calculating the YTD Taxable Income / YTD No of Pay Periods to ensure the correct calculation of the tax. 

Step Three: Review and add details

Once you've created the termination, you'll be presented with further details and options.

1. Select include in EFT (if you want it to be processed as part of the EFT File) or Adhoc EFT 
2. Check that you agree with the figures calculated in the break down of what the employee will be paid for outstanding leave balances.
3. If there are any ETP Payments that need to be processed as part of the Normal Termination, such as in lieu of notice, click Add  and select from the drop-down list.
4. Additional Pay Elements can be added as part of the termination if required. Click Add button. This is like a Pay Adjustment and linked Pay Elements will not automatically load. 
5. In Normal Pay
   1. Add leave dates and types, noting that leave dates cannot be greater than the Termination Date. Manually adjust the leave entitlement to be paid out in the Termination.
   2. Select the appropriate option in the  Rate Sets dropdown.
6. Click Calculate and Save to review the Termination Breakdown which contains the Gross, Tax and Net figures.

Note: If you are entering in items in Normal Pay – Adjustment Section and there are 
linked Pay Elements these will not automatically load into the Termination. You will 
need to manually Add these items following the steps above. This includes RDO Bank and 
Leave Loading.

Step Four: Review the Termination Breakdown and Finalise

1. Check that you are happy with the figures the system has calculated, based on the Termination Date.
2. If you need to include any ETP payments in the Normal Termination, in the ETP/Lump Sum D section, click Add.
3. To add other Pay Elements needed, under Normal Pay - Adjustment Section, click Add. For Auto Paid normal hours will be created on timesheet.
4. Click Calculate and Save and Humanforce Payroll will calculate the tax that needs to be paid on Termination. If required, you can override the tax amounts by entering values into the Override field for the relevant tax type, on the right hand side.
5. If any items on the Termination are not correct click Edit Details to amend.
6. To view a PDF version of the Termination, click Term Advice. It will include Draft Only in the heading, until you finalise the Termination.
7. Double check you are happy with your selection for include in EFT or Ad Hoc and all figures contained in the Termination.
8. Once the termination has been reviewed and it is ready to be paid and processed, click Finalise.

Once a Termination has been finalised it cannot be deleted. 

A Termination needs to be finalised before the payroll can be Authorised. You can run a Pay Calculation, however you will get a Termination is not finalised error message if you request authorisation of the payroll and a termination has not been finalised.

If you are processing this Termination as an Ad hoc EFT and do not use the WIBS, then you will need to download the EFT file to send to your online banking system.

If you do use WIBS, then the Termination will need to be Approved, just like the Pay Adjustment for EFT to be sent via Westpac.