Process 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 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) 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.

Confirm the employment end date & termination reason.

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

Note: This will bring up a confirmation screen where you can view the payslip in PDF format & download the PDF as well. You are now ready to lodge your STP file to the ATO.

4) Press the View Summary & STP button, which will bring up the next screen below to review the figures.

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

Note: Once the STP file has been successfully submitted, a clock icon will display next to the employees' name, which means the STP file is in Pending Status.  You can also select the downwards arrow to the right of the employee line to view more information on the STP lodgement, like the time & date.