Process final pay for a termination

When an employee leaves your organisation, you need to set their termination date and pay them their final pay including any unused leave. Only gross wages can be included in the final pay.

Before you start

You'll need to process ETP's and complete an ETP payment summary manually.

Process a normal termination in the final pay

  1. In the Payroll menu, select Pay Runs.
  2. Select the relevant draft pay run.
  3. Click the employee's name.
  4. Click Set as Final Pay at the bottom of the payslip.
  5. Select the last day of their employment as the termination date, and click OK.

    Termination date must be before the end of the current pay period.

  6. Select Normal Termination.
  7. Either:
    • If the employee works irregular hours, manually enter the average earnings amount.
    • Select the last full pay period with the employee's normal gross earnings.
  8. Click Save.
  9. Review the employee's payslip including:
  10. Process the pay run

When the pay run is posted, the termination date is applied to the employee's record in Xero. They’ll move to the History tab of your employees' list.