Termination Payments

Terminations in foundU can be done easily in a 2 step process:

  1. First you'll need to edit the payslip.
    • Please note if your termination is Eligible Termination Payment (ETP), the process is slightly different, please click here.
  2. Then you'll need to terminate an employee’s profile, click here. 

We also cover key topics below that relate to terminating an employee. This includes:

  • Paying out entitlements for an employee.
  • Transitioning from full time to casual.
  • Termination payment reporting.
  • To learn more about reporting on Terminations (non payroll), read here.
Step 1: Edit Payslip
  1. To access the Edit Payslip screen, navigate to the Payroll quick menu and select > Pay which will then display your draft payslips
  2. Apply the relevant period end filter and search for the employee. Select Actions > Edit.

Step 2: Pay out entitlements

You may pay out an employee’s leave entitlement balance by clicking the drop-down arrow on the relevant leave type and selecting the termination option e.g. Annual Leave: Termination.

  • You will be prompted to select the appropriate STP reportable label:
    • Include in Gross Payments
    • Lump Sum A Redundancy
    • Lump Sum A Termination

If unsure which label to choose, please refer to the ATO guidelines here

An icon will appear on the line item referencing the STP allocation.

Upon finalising any further edits, the payslip can be generated.

Please note: To apply PAYG withholding for lump sum annual and long service leave payments, you may enable the Override Tax option to manually enter the applicable tax amount.

Employee going from full time to casual & managing their entitlements

When terminating an employee's position you may have the below scenarios:

  • A salaried/full time employee termination and needing to cash out their leave entitlements
  • A employee going from full time to casual, and need to cash out leave entitlements e.g. annual leave/ delete sick leave and carry over long service leave to their casual position.

If you have an existing full time employee e.g. Jane going to a casual position, when you add in the  new positions details, a pop up will come up asking you how you would like to manage their entitlements.

There are three options:

  1. Pay out e.g. cash out the entitlements for example annual leave
  2. Carry over e.g. have the leave continue where the employee will continue as a casual employee (relevant for long service leave).
  3. Delete e.g. delete a personal leave entitlement

To finalise entitlements for a full-time employee going to casual:

  1. Create the New Position and select Casual, then fill in the appropriate details and move to Continue.
  2. In the Entitlements section you will see the existing entitlements for this employee. 
  3. Use the radio buttons to choose which leave types you'd like to:

    • Pay out- Annual leave. When these are selected they will appear on the employees payslip. 
    • Carry Over- Typically Long service Leave
    • Delete- Most other leave types (compassionate, personal)

  4. You are transferring this employee from Permanent to Casual. For each entitlement please select if at the conclusion of the permanent position it should be Paid out, Deleted or Carried over to continue accruing as a casual. 

Typically Annual Leave would be paid out, Long Service Leave would be carried over and all other leave types deleted.

When you navigate back to the Employee Card > Employment Type and scroll down to the Entitlement Area, you will notice the orange 'Pay Out' pill over the entitlements selected.

From here, if you have made a mistake and need to make changes, you can re-edit the entitlement using the edit icon. This will provide you with another chance to edit the pay out, carryover or delete.


Please note: The pay out process will occur in the payslip for the final period ending before the employee becomes casual. If no draft payslip is created in that period through approving times or leave, a manual payslip will need to be created.

Termination Payment Reporting
You can report on termination payments easily through the Standard Payroll Activity Report. 
  1. Navigate to Reports > Financial > Standard Payroll Activity Report 
  2. Set the required date range > add your groupings (recommended groupings would be Employee ID, Payslip, Period End)
  3. In Extra Filters select 'Payslips with Leave Terminations'
  4. Select any other search criteria or reporting options you need then Submit

You can read more about the Standard Payroll Activity Report here.
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