End employee's employment

When an employee leaves the company, you'll need to enter their end date in Xero, and then pay them a final payment, including any outstanding entitlements.

Add the employee's end date

To ensure the employee's final pay is the correct amount, add their last day before making their final payment in a pay run.

  1. Go to Payroll, then click Employees.
  2. Click the employee to open their details.
  3. Click the Employment tab.
  4. Click End Employment.

    End employment

  5. Select the employee's last day, and then click End Employment.

  6. Click End Employment.

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.

  1. Click Payroll, then select Pay Runs.
  2. Select Unscheduled Pay Run, then click Process Pay Run.
  3. Select the employee's pay schedule from the list.
  4. Select the final pay period of the person’s employment from the Unscheduled Pay Period list.
  5. Click Create.
  6. Select the employee's checkbox to include them in the pay run.
  7. Click the employee to open their paystub and make any adjustments.
  8. Click Save & Close.
  9. Click Pay Employees.
  10. Click Complete Pay Run.

Completing a pay run pays the selected employees and creates tax invoices for payroll. You cannot delete the pay run once it's completed.

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