Processing Terminated Employees

The termination Job record must be inserted before the payee's last payment is processed.

For example, an employee's last day is May 10, and the pay period of her last payment is from April 16 through May 15. The payroll is processed on May 20. In this example, before her last payment is processed on May 20, you must enter her termination Job record with an effective date of May 11.

Follow the standard procedures for entering tax, dependent, and YEA deduction information for the terminated employee.

You do not have to take any special action to process payroll for terminated employees. If the employee is terminated during the pay period by reason of death, the system automatically processes YEA salary calculations.

For bonuses, the system determines if the payee is dead as of the payment date. YEA calculations are made if the date of death is before or on the payment date.

You can modify the rules to automatically process YEA for other termination reasons, as well.