End an employee's employment
When an employee leaves, you'll need to enter their end date in Xero, then make a final payment to them including any outstanding entitlements.
Add the employee's end date
- In the Payroll menu, select Employees.
- Click the employee to open their details.
Click the Employment tab and click End Employment.
- Select the employee's last day, and then click End Employment.
- Click End Employment to confirm.
Pay an employee their final payment
Pay a final payment in your next normal pay run if an employee has a positive time off balance. Otherise, process their final pay in an unscheduled pay run if the employee's time off balance is negative.
We'll use an example to show you how it works. Let's say you have an employee's with a negative time off balace.
- In the Payroll menu, select Pay Runs.
- Select Unscheduled Pay Run, then click Process Pay Run.
- Select the employee's pay schedule from the list.
- Select the final pay period of the person’s employment from the Unscheduled Pay Period list.
- Click Create.
- Select the employee's checkbox to include them in the pay run.
- Click the employee to open their paystub and make any adjustments.
- Click Save & Close.
- Click Pay Employees.
- Click Complete Pay Run.
Completing a pay run pays the selected employees and creates tax invoices for payroll. You can't delete the pay run once it's completed.