Payroll Relationship and Termination Dates for Mexico

When you terminate an employee or end an assignment record, the Payroll Relationship page displays the corresponding dates. These dates control how earnings and deductions are processed for the terminated employment record.

For example, David Garcia resigned from his teaching post at Royal High School, and his line manager enters a termination date of 22-July-2020. The application will process David's last payroll payment for 31-July-2020. You can view these termination dates on the payroll relationship page for David. These dates show up at all the employment levels of David, such as assignment, associated payroll, and payroll relationship.

This image shows David Garcia's payroll processing dates and the behavior of the application for handling the payroll records:

This image helps you understand the application behavior while processing the terminated employee's payroll.

Name

Date

Application Behavior

Last Standard Earnings Date

22-JUL-2020

Sets the Last Standard Earnings Date as David's termination date.

Last Standard Process Date

31-JULY-2020

Sets the Last Standard Process Date as the process date of the payroll period in which David's termination occurred.

Final Close Date

31-AUG-2021

Enter a Final Close Date on David's assignment. This date will carry over to David's payroll and payroll relationship records.

The Final Close Date ends the payroll records. You can't perform any payroll actions for David after this date, such as calculate payroll, make retroactive payments, or balance adjustments.

The date you provide would depend on your business requirements, such as when your company makes commission or profit sharing payments to terminated employees. However, the best approach is to enter a Final Close date that falls after tax year-end. You can perform any balance adjustments as part of your year-end processing. For Mexico, it's important to take into account when your company completes its profit sharing exercise.

Note: If you enter a Final Close date for a person who has other active assignments, the payroll relationship still remains active.

End Date

31-AUG-2021

This date is defaulted when you enter the Final Close Date.