Prior to entering a termination date for an employee you will need to complete any time entries or leave requests. Once you set a Termination Date, NetSuite will prevent further time entries being made against an employee. |
This will set the termination/release date on the Human Resources tab.
If the employee’s leave date has already passed you will be able to see that the employee record status will change to terminated.
If applicable to the Employee, an entry for Annual Leave Payout will need to be included in their final payment.
First you will need to work out the annual leave that has been taken and whether this is over or under the pro-rata entitlement (from the start of the annual leave year to their leaving date). For this you will need:
Once you have worked this out you will need to enter this as a one off pay detail.
You may also want to enter further lines at this stage such for payment in lieu of notice or a statutory redundancy payment
These payslip details will be picked up in the next pay run.
Run the Pay Run as usual - more information on running a payroll on the Pay Run Processing Guide
Check the payslip prior to approval to make sure that the salary/wages pay components have been calculated as expected on a pro rata basis to the leave date and that the annual leave payout and other one off details are present.
Using "Annual Leave Payout - UK" will also reduce / increase the employees leave balance. If you do not use Infinet Cloud Leave Management this can be disabled. |
When you’ve run the payroll for the period that the employee leaves you need to make sure you report them as leaving employment on your FPS.
Check this prior to submitting the FPS by sorting the leave date section on the FPS page with dates at the top.
Ensure that the company address has pulled through, enter this if not
The address can be entered in the Payroll Configuration record to be auto-completed in future follow this guide to Add Address to Payroll Configuration |
After their final Pay Run and prior to initiating the next Pay Run you will need to follow the Excluding an Employee from Payroll guide to make sure they are not included.
If you have multiple terminations to process within one pay run you can use the Batch Terminations process.
If you have to pay an employee after they leave
Do not give the employee another P45.
After you have run the payroll you will need to set the employee's pay frequency back to "exclude from payrun" and set their Payroll Employment Status back to "Terminated" - Excluding an Employee from Payroll |