In MYOB Exo Payroll an employee can be terminated using a Current Pay or a One Off Pay. As a part of the termination pay calculation, the employee is entitled to 8% on the earnings in the current pay.
If an employee is being terminated in a One Off Pay while a Current Pay was still open that the employee was being paid in, this will make the Termination Pay amount incorrect. As the Current Pay was still open, with the One Off Pay being used to process the termination of the employee, the MYOB Exo Payroll software will not add the employee's earnings from the Current Pay towards the final termination pay calculation.
Below are options that can be followed for correcting termination pay figures depending on how much work has been done, the details processed in the pays and what information is desired to be shown in reports.
Restoring
- If the Termination One-Off Pay has already been updated then restore the 'update' backup to reopen the One Off Pay.
- Delete the One Off Pay.
- If the Current Pay whose earnings had not been included in the termination pay calculation is open, complete the processing of this pay then update the pay.
- Reprocess the termination pay using a One Off Pay - the figures in the termination pay should change to take into account the updated Current Pay.
- If the employee's Net Pay from the original Termination Pay has already been paid to the employee, such as the direct credit file having been sent to the bank, then pay the difference in the Net Pay figures to the employee such as by doing a manual direct credit for that amount through the banking software.
Manual processing
Open Current Pay
When there is an open Current Pay that the employee is in that contains earnings that should have been included in the employee's termination pay, the employee is showing as terminated and a restore cannot be done then the following can assist.
To fix the issue in an open current pay
- Click on the 'Terminate/Reinstate' option under the File menu
- Enter the code of the employee to be reinstated then click on the Find button or press Enter
- Change the date to the employee's original Start Date then click on the Reinstate button
- In the open Current Pay, select the reinstated employee
- Go to the Holiday Pay screen then follow either of the two options below:
- Tick the 'Override' field next to the 'Holiday Pay Amount' field then enter the appropriate % of the earnings of this pay, e.g. 8%. Note: The percentage figure to be used can be found in the 'Annual Entitlement %' field in the employee's Holiday Pay tab of Employee Maintenance.
- Tick the 'Pay Termination Holiday Pay' field then proceed through the Termination Wizard. On Step 3 of the Wizard, if necessary tick the 'Manual Adjustment' field then enter a figure so that the 'Total Termination Pay Value' is the % amount of this Current Pay.
- If the employee has already been paid the original Net Pay for this Current Pay then they will need to be paid the difference in the Net Pay figures, be that as a manual direct credit or cash or cheque. If the Current Pay has not been paid to the employee then process the payments as normal.
- Once the Current Pay has been completed and updated, the employee may need to be terminated.
- If the 'Pay Termination Holiday Pay' option had been used to pay the termination correction figure then when the Current Pay was updated the employee will have been automatically terminated.
- If the 'Override' option had been used then go to the 'File' menu, click on 'Terminate/Reinstate', select the employee, enter the original termination date then click on the Terminate button.
Closed Current Pay
This process can be followed if too much work has been done in the software since the termination pay was processed for a restore to be practical, the Current Pay that should have affected the termination pay calculation but did not has already been updated or it is desired that the reporting show a separate pay for the termination pay correction.
To fix the issue in a closed current pay
- If the employee is showing as terminated then click on the 'Terminate/Reinstate' option under the File menu
- Enter the code of the employee to be reinstated then click on the Find button or press Enter
- Change the date to the employee's original Start Date then click on the Reinstate button
- Create a new One Off Pay for that employee only
- Go to the Holiday Pay screen then follow either of the two options below:
- Tick the 'Override' field next to the 'Holiday Pay Amount' field then enter the appropriate % of the earnings of the Current Pay, e.g. 8%. Note: The percentage figure to be used can be found in the 'Annual Entitlement %' field in the employee's Holiday Pay tab of Employee Maintenance.
- Tick the 'Pay Termination Holiday Pay' field then proceed through the Termination Wizard. On Step 3 of the Wizard, if necessary tick the 'Manual Adjustment' field then enter a figure so that the 'Total Termination Pay Value' is the % amount of the Current Pay.
- Process the One Off Pay as normal
- Once the One Off Pay has been completed and updated, the employee may need to be terminated.
- If the 'Pay Termination Holiday Pay' option had been used to pay the termination correction figure then when the Current Pay was updated the employee will have been automatically terminated.
- If the 'Override' option had been used then go to the 'File' menu, click on 'Terminate/Reinstate', select the employee, enter the original termination date then click on the Terminate button.
Need more help? You can open the online help by pressing F1 on your keyboard while in your software.
You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.
