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What this does
When someone leaves, a final pay pays out the time-off balance of every policy set to Pay out on leaving. It also pays this pay's own accrual.
Steps
- Terminate the employee. See The Employment tab.
- Start a final pay. See Final pay.
- Calculate. The run shows the payout as a pay line named after the policy.
- Review the amount, approve and pay.
What is paid
- The ledger balance of the policy, for every year.
- Plus the accrual of the final pay itself.
Good to know
- A policy that does not have Pay out on leaving is not paid out. The balance stays.
- Check the amount against your province's rules for vacation pay on termination.
- Approving the final pay posts the payout to the ledger.
- Reversing the final pay takes the payout back out.
- The payout is vacation pay, so it follows the tax treatment of the Vacation pay earning.