Processing a Final Payslip

The Final Payslip option within the Payroll screen is used to pay out the employee's leave balances if any & reporting the termination reason & employment end date as this is a legal requirement for STP2.

Note: For casuals, you will need to make a call on whether you are likely to re-employee them in the foreseeable future. If so, no need to process a final payslip for them.

We suggest processing a normal payslip if any regular hours are worked to pay out for the employee, then you would need to process another payslip to pay out the entitlements for the employee, making sure to select the Final Payslip option within the Payroll screen under Additional Payslip Options.

Note: Once you've created the payslip for the last regular hours worked, check the payslip or run a leave report to see what the employee's final leave balances are. You'll need the number of hours for when you pay out leave in the final payslip.

Make sure you have Leave Loading activated within the employee's profile if you wish for it to be calculated as well.

To process a Final Payslip:

1) Go to Payroll Home, enter your payroll dates (be sure to use a payment date not already processed for the employee) & select the employee for the Final Payslip & then press the Create Payrun button

2) Press Edit Payslips (web version) or Edit (Mobile App), scroll down to Additional Payslip Options, and press the toggle for Final Payslip

Note: A pop-up window will appear, explaining the Final Payslip process. Press Continue.

3) Press on the Annual Leave Paid Out field & enter the leave hours to be paid out. (If you need to pay out the employees leave balances). This will multiply by the hourly rate set in the employee's profile.

Same for long service leave.

Confirm the employment end date & termination reason.

Once you have confirmed the necessary details, press Save & Finish (Once you have pressed Save & Finish, the leave balances will be zeroed out).

4) Confirm the details are correct & press Finalise Payslips

5) Press Lodge STP File, which will bring you to the declaration screen to sign your name & then press the Lodge Single Touch Payroll button

6) You will now see the updated STP status as pending with a clock icon, which will then go into confirmed status with a green tick once received successfully by the ATO within 72 hours

7) You can now go ahead & email the payslips to the employees by pressing Email Payslips & then pay your employees net pay via Download ABA File.