Task 2: [Optional] Create payroll categories for termination payments
If a termination amount needs to be taxed at a different rate—for example, unused holiday pay—you need to create a new payroll category for this amount. Also, to pay an entitlement balance (such as unused holiday leave) you may need to create a payroll category to accrue the entitlement by calculating leave based on a percentage of gross hours. However, if you use this payroll category for a termination payment, you need to exclude the new payroll category from accruing leave.
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Go to the Payroll command centre and click Payroll Categories. The Payroll Category List window appears.
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Click the Wages tab.
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Type the name of the wage category in the Wages Name field. For example, if you need to create a wage category for unused holiday pay, type a name such as Unused Holiday Pay.
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Select Hourly as the type of wages.
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In the select column (
 ), click next to the employee who is leaving. |
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Click OK and then OK again. The Payroll Category List window reappears with the new payroll category in the list.
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Click the Entitlements tab. The list of entitlement payroll categories appears.
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Select the payroll category used to calculate the entitlement, for example, Holiday Entitlement, and click Edit. The Entitlements Information window appears.
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