Employee termination process

During the 2024/2025 EOFY processing for Australia, a number of customers reported issues with the reporting of cessation reasons for terminated employees via STP.

There were two key underlying causes that contributed to the failure of the product to report employee cessation reasons during the EOFY Finalisation process.

1. Some customers did not follow the correct process for Employee Terminations.
   We are currently looking at how we can better guide our customers through the correct activities and processes to ensure both compliance obligations AND database integrity/maintenance needs are met. This may mean additional validation rules and warnings within the system as well as additional documentation and advice to customers.

2. In some instances, multiple pay sequences with the same Payment Date as the termination pay. In this scenario the ordering of the pay details was incorrect.  MYOB will be making changes to the product to ensure that these are handled in the correct order so termination pay can be identified correctly.

Aside from the Cessation Reason Code missing errors reported. Please remember, you SHOULD NOT be waiting until the end of the financial year to address your STP errors - see Correcting information reported through STP. Depending on the circumstances the correction can either be picked the employee’s next PayEvent if they are to receive another standard pay or current tax year’s manual pay or you will need to create an Update Event. Also remember, you can now view Update Events before you send them to the ATO.