Extending Termination Processing

This topic discusses overriding the length of service and the average salary for a payee.

You may want to override these values because there is no payroll result for the entire previous year in the system. Or, you may want to override the values calculated by the system.

To override the average salary of a payee:

  1. On the Create Overrides/Supporting Elements page, override the following two variables:

    • TER VR LOS

    • TER VR LAST OR AVG

  2. On the Positive Input page, add the TER ER TRM3 element.

To override the LOS, override the following variables on the Create Overrides/Supporting Elements page:

  • TER DT LOS FROM

  • TER DT LOS END

Example

Mr. A, a retired employee has the following employment information:

  • Hire date: March 1, 1993.

  • Retirement date: July 1, 2004.

  • Basic salary from June 2003 to December 2003: 48,000 THB.

  • Basic salary from January 2004 to June 2004: 50,000 THB.

If your Global Payroll system was not active until January 1, 2004, then there were no completed payroll results for all of 2003. Use the following steps to override the average salary in the system for Mr. A:

  1. Manually calculate Mr. A's average salary before calculating the termination tax.

    Use the formula: Average salary of last 12 months * 110%.

    In this case, the values in the formula are: (48,000 * 6 + 50,000 * 6)/12 * 1.1 = 5,390 THB.

  2. Create overrides for the TER VR LOS and TER VR LAST OR AVG variable elements.

    If the basic salary for the last month is smaller than the average salary of the last 12 months * 110%, change the value of TER VR LAST OR AVG to L

    If the basic salary for the last month is larger than the average salary of last 12 months * 110%, change the value of TER VR LAST OR AVG to A.

    In this example, the basic salary of Mr. A's last month is smaller than the average salary of the last 12 months * 110%, so the basic salary for the last month is used for the termination tax calculation. You should change the value of TER VR LAST OR AVG to L.

  3. Use positive input to enter the value for TER ER TRM3.

    Mr. A's basic salary for the last month is smaller than the calculated average salary, so you should enter 50,000 into TER ER TRM3.

If you want to override the LOS for the current payee, override the values for the TER DT LOS FROM and TER DT LOS END date elements.

  • TER DT LOS FROM is the hiring date. In this example, March 1, 1993.

  • TER DT LOS END is the termination date. In this example, July 1 2004.