An employee has already been terminated and you have outstanding payments to process for this employee. There are instances where you can just process the payment on the terminated record and then there are instances when you need to create a new record in order to process these outstanding payments.

The termination date is an indication when the the employee's tax and employment record ended, and a final tax calculation was enforced by the system.

In some instances, payments can be made in arrears e.g. bonuses, commission and incentives.

If an employee was terminated in the current tax year, you should not change the employee status to Active/Normal to process payments.

You can thus process the income on the terminated record, and the system will apply a final tax calculation on the income of the record, and can be included on all reports and ACB exports, as well as a payslip can be generated.

A change in employee status from terminated to active will be indicated on your Company Reconciliation and Audit Log file, and is also used by other modules e.g. the Leave and Equity Module.

If an employee was terminated in a previous tax year, you will need to review the specific income to be paid, to determine if:

• it is variable income (taxed at current tax year rates - new employee record will need to be created in current tax year), or
• if the income should accrue to previous tax year (can be processed on terminated record, assessment year to be completed on Employee Information Statutory tab).