Termination Lump Sums

Lump sum payments made to employees on termination will need to be added using a custom once-off income item. In addition to this custom item, you will need to add the system termination lump sums item – adding this item to a payslip will affect every other item on the payslip. We suggest that you issue the employee with a normal payslip for his / her last month, then create a once-off payslip, with this item and all the items that make up part of the lump sum.

Please note: We strongly recommend that the date of the once-off payslip be the same as that of the final normal payslip.

The above concepts are discussed in more detail in the following articles:

• Payroll Setup > Company Setup > Custom Items
• Add a Payslip

Once you have created the once-off payslip, you can add the termination lump sum item by clicking on Add (next to Payslip Inputs) > Termination Lump Sums. Please ensure that you enter all the information on this screen completely and accurately because it forms part of the IR8A reporting requirements.

When paying out accumulated leave on termination, you should use the built-in leave paid out item for this. Paying out leave on termination is discussed in the following article:

• Leave Paid Out