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Processing a termination payment (New Zealand)

When an employee is made redundant or resigns, they are to be paid out any Holiday Leave that they are owed. This is usually comprised of any Outstanding Leave still owing to them as well 8% of their Current Holiday Year gross earnings liable for Holiday Pay, less any advanced leave.

The Termination Holiday Pay Wizard is used to calculate the termination Holiday pay and provide a breakdown of the payout for Holiday Pay that the employee will be receiving. The Wizard displays the Holiday Pay that is being paid out as well as showing the calculation of that leave payout.

To process a termination payment
  1. The Termination Holiday Pay Wizard is accessed through the Holiday Pay section of the Leave Management screen in either a Current Pay or a One Off Pay. To start the Wizard, click on the "Termination Wizard" button then click on Yes when the "Pay Termination Holiday Pay" message appears.

    • The first screen will show any outstanding Holiday days that the employee still has owing to them from previous entitlement years and the amount to be paid for those days. The Total field also includes the % value of the outstanding leave amount.
    • The second screen will show the gross figures for the employee for the current Holiday Pay year, any leave that has been paid in advance as well as the % of the current gross.

      When paying out termination Holiday Pay for an employee, the employee is paid out a % of their current Holiday Pay year's Gross rather than the number of days they have accrued in that Holiday Pay year.


    • The third screen shows the total Termination Pay Value that is to be paid to the employee, comprising of both the outstanding leave and the % of the current Holiday Pay year.
  2. Print off the Termination Pay Summary report using the Print button on the third screen as this is the only location that the report is available from.

    If the Termination Pay Summary report is not printed at this stage, the software will automatically create the report as a PDF file when finishing the Termination Wizard.


  3. Clicking on Finish will bring up a message asking if the employee is to be terminated automatically after update. Click on Yes and the employee will be terminated when the pay is updated, making them inactive in the software.
    The following screen advises where the Termination Holiday Pay Summary report has been saved for future reference.
  4. Click on Save:F10 in the Leave Management screen to return to the main pay screen. Access the Days Paid screen to confirm the number of working days in the pay period. Enter the standard number of working days in a usual pay period for the employee then click on Save:F10.

    Once the pay has been checked and confirmed as correct, reports printed and the direct credit file created then the pay can be updated. When the pay is updated then the employee will be marked as terminated and becomes an inactive employee in the software.

Be aware that when processing the termination pay in a One Off Pay, the employee being terminated may potentially be in an open Current Pay.

To check this, go to the Current Pay and if it is open then search for that employee. If they are in the Current Pay with any earnings being paid to them, confirm the period this pay is for. If the Current Pay is for the previous pay period that the employee should be paid for then update the Current Pay then go through the termination pay again to update the termination figures. If the Current Pay is for the current pay period then clear these earnings by clicking on the Reset button then selecting "Clear this employee's Current Pay".

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.

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