Terminating An Employee

In Wagemaster there are generally two methods of terminating an Employee:

1. Via the Termination Wizard at Wages Processing.
2. Temporary Termination via Manually entering a Terminate Date in the employee file.

The Termination Wizard should be used if the employee is to be paid out un-used leave entitlements or other termination/lump sum termination payments. The termination wizard is designed to assist with the calculation of the gross and tax on these types of termination items. The wizard will also allow WageEasy to record the amounts per ATO reporting requirements. An employee file that is terminated via the termination wizard cannot be reinstated. If the employee were to return, you would need to add a new employee file for the employee

If you do not need to pay out any unused leave on termination or any other termination components to the exiting employee you may wish to use the Temporary Termination method. The temporary termination method is particularly useful for terminating employees that are:

• Casual employees that have no ETP or Lump Sum items to be paid out upon termination.
• Employees that are likely to return and have no ETP or Lump Sum items to be paid out upon termination.
• Employees on long periods of Unpaid Leave.

There are two situations in which you may need to terminate an employee.

Permanently Terminating An Employee: 

When one of your staff leaves and is unlikely to return, (moved to another country, got a new job, etc.) you will hire a replacement staff member. You will need the licence that was being used by the old employee. To do this, you will need to permanently terminate your employee. 

All terminations of this nature should be completed in Wagemaster on the day of actual termination, i.e. the date the employee leaves the company, where possible.

  1. Check annual leave entitlements and long service leave entitlements prior to termination. 
  2. Access the timesheet for the relevant employee. 
  3. Complete the timesheet if necessary to calculate the employee’s final pay.
  4. Click Next to progress to the adjustments screen. 
  5. Make any relevant adjustments as per normal. 
  6. Click on Termination. 
  7. Click on Add. 
  8. The Termination Wizard will appear. 
  9. Click on Next. 
  10. Type the date of termination of employment as the last day the employee worked for you (this is especially important if you are not processing the termination on the day the employee left). mceclip2.png
  11. This example will look at a standard termination. If you are unaware of which termination type to choose, you may need to seek assistance from your Accountant.
  12. Click Next. 
  13. You will now be on the termination notice screen. The notice required will vary depending on the type of employee. At this stage, you must select if the sufficient notice has been given and if not who did not give notice. Once you have selected an option click Next. 
    • Please Note: You may be required to pay termination notice if you did not give sufficient notice of termination to your employee.
  14. You will now be on the annual leave screen, ensure the details are correct and then click Next.
  15. You will now be taken to the long service leave screen. If relevant, please check these details before clicking Next. 
  16. You must now select a method to tax your employee’s annual and long service leave payouts. You should read the methods and decide which one you will use then click Next.
  17. You will now be on the rollover screen, click Next.
  18. You will now be on the Summary Screen, click Finish.
  19. A termination record will be created.mceclip5.png
  20. Click on Next to carry through to the payslip. 
  21. The payslip produced will specify any amounts to be paid to the employee and will also state the date of termination. mceclip6.png
  22. Click Save then Close.

Please Note: If you permanently terminate an employee and they do return, they will get a new employee number and, if they return within the same financial year they will also end up with 2 payment summaries.

Temporarily Terminating An Employee: 

When one of your casual staff goes way for a few months and is likely to come back you may need to use their licence in the meantime for a different person. To do this you will need to temporarily terminate your absent casual. 

  1. Go to Employee. 
  2. Go to Edit Employee. 
  3. Select the Employee (who you wish to temporality terminate) from the dropdown list. 
  4. Click on Employment, then Employment again. 
  5. Enter the first day of the first pay period from which they will be absent in the terminate box. 
  6. Type a Reason if desired. 
  7. Click Close to save your changes. 

Reinstate A Temporarily Terminated Employee: 

When your casual returns to assist with harvesting, you will need to reinstate them. To do so, follow the instructions on reinstating a temporarily terminated employee. 

Ensure that you reinstate the employee prior to processing their fist pay after they have returned.

  1. Go to Employee
  2. Go to Edit Employee. 
  3. Select the Employee you wish to reinstate from the dropdown list. 
  4. Click on Employment, then Employment again. 
  5. Delete the date in the terminate box. 
  6. Type a Reason if desired. 
  7. Click Close to save your changes.

When reinstating an employee we would always recommend you run the Report > Employee > Details Report and have the employee review their details and advise payroll\HR of any updates required such as bank or address details. If the employee is attached to an award that has been configured with Yearly Leave Accruals.

Note on Active Employee Licenses in your WageEasy Company File:

Terminated employees do not count towards the active licenses of the WageEasy payroll database. This means you can set employees that do not work regularly to terminated and utilize the active employee license for another employee. This may save you purchasing additional active licenses if you have a large casual workforce that do not work each pay cycle.



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