Understanding Termination Processing

The PeopleSoft system delivers rules and procedures that support the automatic calculation of year-end adjustment (YEA) for employees terminated by reason of death.

The termination judge formulas (YE FM YEA ELIG for regular salary, YE FM ELIG BON for regular bonus, and YE FM ELIG YE for December salary and bonus) determine the following:

1. When the payee has been terminated.

   Whether a payee who is subject to payroll calculation is terminated during the current pay period.

   YE FM YEA ELIG determines if the employee has been terminated during the current pay period. YE FM ELIG BON and YE FM ELIG YE determine if the employee has been terminated as of the payment date.

   This decision is based on whether the employee's Job record has the action TER (terminated) as of the Period End date if the Payroll is for Salary, or, as of the Payment date if the Payroll is for Bonus or December salary.

2. Whether the payee is subject to YEA calculation at the time of the last payment calculation.

   This determination is based on whether the employee's Job record with action TER, selected in the previous step, also has the reason DEA (death).

   Note: You can modify formulas YE FM YEA ELIG, YE FM ELIG BON and YE FM ELIG YE to add additional reason codes if you want the system to automatically calculate YEA for employees who are terminated for reasons other than death, such as international transfer.

When the formula YE FM YEA ELIG or YE FM ELIG BON or YE FM ELIG YE returns the value 1, indicating that the payee qualifies for YEA calculation, the system processes the YEA calculation sections in the salary and bonus process lists. These sections are initial process of YEA (YE SE INIT), and YEA on salary payment (YE SE TAX ADJ SAL) or YEA on bonus payment (YE SE TAX ADJ BON).