What this help guide covers:
Terminating the employee
To pay out leave upon termination, first ensure that an employment end date and cessation code have been entered in the employee profile.
Learn more about terminating employees here.
Paying out final leave payments
When you add the employee's end date to their profile, you will see a + Process Final Pay Payments button in the Annual Leave Taken section of their final payslip.
When this is selected, Tanda will calculate the payment using the method that gives the employee the higher amount:
1. Average Weekly Pay - Based on their average earnings over the past 12 months
2. Ordinary Weekly Pay - Based on their regular contracted pay (set in their Pay Conditions)
Clicking on the '?' icon in the weekly rate column will give you the breakdown of this calculation.
What gets paid out
The main entitlement that is paid out on termination is Annual Holidays. Any unused portion of the accrued Annual Holidays balance will be included in the employee’s final pay calculation.
Similarly, an employee's Holiday Pay (what the employee accrues between Annual Holidays entitlements) will also be paid out if they are between entitlements. This appears in the payslip as Holiday Pay Final Pay:
The following entitlements do not get paid out by default. If they need to be paid out, add them manually to the payslip:
Sick leave
Bereavement leave
Alternative holidays (time in lieu)
Public holiday entitlements
If an employee has taken more leave than they’ve earned
If an employee has taken Annual Holidays in advance and their balance is negative, this will be flagged as a warning on the payslip, and the business can decide if this should be deducted from the payslip.
Calculating Holiday Pay Final Pay
Typically, Holiday Pay Final Pay is calculated as: Holiday Pay Accrued + Any accrued Holiday pay in the final payslip - Past Leave Taken Cost.
View the Holiday Pay Accrued amount in the employee's profile:
To find the Past Leave Taken Cost, you can run a report such as the Activity Details report with the leave type cost added as a column:
In this example, the holiday pay final pay amount would be $1682.17 (4659.79 - 2977.62), as long as there are no further holiday pay accruals in the final payslip, and if there is no opening balance.
If the employee has an opening balance for this leave type, the Leave Taken cost is reduced by an amount equivalent to the opening balance, resulting in a higher Holiday Pay Final Pay amount.