Terminating Employment

You can follow these general procedures in Sage HRMS Payroll when a staff member’s employment has terminated with your company.

To Terminate Employment

1. Back up your database.
2. Open Employee Payroll
3. Update the employee’s record as follows:
1. On the General tab, enter the Termination Date.
2. On the Class/Schedule tab, in the Status field, select the appropriate status (Inactive or Terminated). For example, if the employment has permanently ended, and you intend to print the employee’s Record of Employment report in Payroll, you can choose Terminated–ROE Pending.
3. On the Other tab, add comments as necessary.
4. If you still have payroll to process for the employee, you can use Calculate Payroll.

Note: Calculate Payroll does not produce checks for employees with a status of Inactive or Inactive–ROE Pending. For an employee with a status of Terminated or Terminated–ROE Pending, Calculate Payroll produces a check for the employee only if the Termination Date entered for the employee (on the General tab of the Employee Payroll window) is equal to or later than the Pay Period End Date entered on the Calculate Payroll window.

5. After you have processed the employee’s final paycheck, you can use the Record of Employment function (in the Payroll Government Reports folder) to print the employee’s Record of Employment (ROE). This function also gives you the option of changing the employee’s status to Terminated (or Inactive), or manually changing the status later.

Note: You cannot print an ROE for an employee whose status is Terminated or Inactive. The status must be one of the ROE Pending statuses, or Active.

6. Employees whose status is Terminated (or Inactive) will still be reported on the Earnings and Hours report, the Employee Information report, and on the T4s, T4As, and Relevé 1 slips.
7. After you complete processing all payroll and required reports for the employee, and set the employee’s status to Terminated, to remove records associated with the employee from the company database, such as the employee’s record and timecard. Be sure to have a backup of your database before you remove any records.
8. Employees whose status is Terminated (or Inactive) will still be reported on the Earnings and Hours report, the Employee Information report, the W-2 slips, Quarterly Wage report, and 941 report.
9. After you complete processing all payroll and required reports for the employee, and set the employee’s status to Terminated, to remove records associated with the employee from the company database, such as the employee’s record and timecard. Be sure to have a backup of your database before you remove any records.

You can use Delete Inactive Records in Payroll Tasks to remove terminated employees who are not referenced in payroll history.