When an employee leaves the employment of the company there are a number of duties the payroll administrator needs to perform.

Obtaining a forwarding address for the employee:

This is important as the payroll administrator may have to send the employee his/her tax certificate and monies owing to him/her after he/she has left the company.

Ensure the Company’s Termination Procedure is complete.

This often forms part of the duties of the payroll administrator, and if this is the case the payroll administrator must ensure that all requirements have been complied with.  In addition to the other duties discussed in this section.  Specific duties may include but are not limited to:

  1.  Conducting of a termination/exit interview.
  2. Obtaining any company property such as: keys, access cards, remote controls, laptop computers etc.  that are in the employee’s possession.

 

The final payslip

The payroll administrator must have all the necessary information to process the employee’s final payslip.

The following is of importance:

  • It might be necessary to calculate a pro-rata wage or salary for an employee leaving the company based on date of termination.
  • Does the employee have annual leave due to him/her?
  • If so, is he/she entitled to payment for this leave?
  • Deos the employee have any loan balances outstanding?
  • Determine whether the total amount outstanding may be deducted from the final payslip, of if the amount due to the company should be reclaimed in some other way.
  • Does the employee have any other monetary commitements to the company?  IE – did he/she buy anything personal on the company’s account that he/she has not yet paid for?
  • Is employee entitled to pro-rata annual bonus?
  • If the employee was retired or retrenched what severance package was he/she entitled to?

There are various other points on this matter, I will discuss those next week.