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title1. New Termination Package

To select Termination Package, select on the drop down at the bottom of the Termination Package button as highlighted below then select the Termination Package option that appears.

Selecting the main icon won’t load the termination wizard.

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title2. Select Employee

Termination Reason

  • Not mandatory.

  • Completed if you want to report on predefined termination reasons through the report builder, e.g., Transfer to NZ.

  • Reasons can be customised through Company→ Company Options → Configure Company Reasons.

STP Termination Reason

  • Mandatory.

  • Required by the ATO for reporting through STP Phase 2.

Termination Payment Type

  • Normal Termination - Treats as normal termination.

  • Genuine Redundancy - Includes the Redundancy payment in the Other Payments step and changes how the Long Service Leave tax periods are taxed.

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title3. Annual Leave

Leave balance includes accrual calculated until the termination date if the employee is on standard accrual and has a work pattern setup.

If the employee is on proportional accrual, then the system won’t calculate any additional balance as there is no method to base the calculation on. The leave balance will be as at the latest closed pay period.

Leave loading is only included in the calculation if setup to automatically pay with the annual leave components instead of it being defined as its own component, e.g., when leave is taken there are separate components for annual leave and leave loading.

Note

Approved leave requests that have yet to be processed will not alter the leave balance until the termination package is included in the pay run.

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title4. Long Service Leave

Tax Periods

Depending on the termination type, the tax periods leave balances have been loaded into will be taxed differently.

Tax Period

Genuine Redundancy

Normal Termination

Pre-16 August 1978

Lump Sum B

Lump Sum B

16 August 1978 to 17 August 1993

Lump Sum A

Lump Sum A

Post-17 August 1993

Lump Sum A

Gross Payments

Leave balance includes accrual calculated until the termination date if the employee is on standard accrual. Work pattern is required if balance is held in hours.

If the employee is on proportional accrual, then the system won’t calculate any additional balance as there is no method to base the calculation on. The leave balance will be as at the latest closed pay period.

Note

Approved leave requests that have yet to be processed will not alter the leave balance until the termination package is included in the pay run.

Warning

DataPay does not calculate termination balances based on completed years of service, e.g., NSW >15 years. The leave balance will include accrual from partial years' service. Any changes will require manual override.

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title5. Other Payments
Info

Refer to Fair Work for redundancy payment entitlement information.

Redundancy Payment

This step of the Termination Wizard is for use when Genuine Redundancy was selected in Step 1. Based on the employee's length of service the wizard will calculate the employee's redundancy payment.
See https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/minimum-workplace-entitlements/notice-of-termination-and-redundancy-pay  for redundancy payment entitlement information

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only automatically included if the termination type is Genuine Redundancy.

Relevant Start Date refers to the field Employment Start Date found in Employee → More Details.

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Termination Notice

If an employee or employer has not given sufficient notice, untick the ‘Sufficient notice was given by the termination party’ tick box and the wizard will calculate the notice period entitlement for the employee.
See https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/minimum-workplace-entitlements/notice-of-termination-and-redundancy-pay  for termination notice payment entitlements

Additional Unused Leave

In this section of the wizard, users can select any unused leave to be paid to the employee upon termination

New Payment

Any other payments that need to be included in the employee’s Termination Package can be added into the New Payment section of the Termination Wizard. Multiple additional payments can be added if necessary

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