FOR

Intermediate-level payroll practitioners (or advanced practitioners wanting a refresher) on all areas of an employee’s termination pay.

Important point: This course is not suited to someone new or in an entry-level payroll position.

PURPOSE

There are two critical times in the lifecycle of an employee that payroll must get right: when an employee starts their employment with an employer and when their employment ends.

For payroll, it is essential to fully understand the reason for termination as this will determine how termination pay is undertaken. Outside standard payroll processing, termination pay is a business-critical activity because of the substantial risk to the business if not processed correctly and the direct impact on the employee.

This course is also aimed at providing all the necessary information for the payroll practitioner to assess and fully understand what their payroll system is doing regarding termination pay (based on compliance with legislation and payroll best practices).

Participants will receive a comprehensive manual with fully worked examples and references. Participants will also undertake a range of termination pay calculation exercises.

DURATION

• One day (In person, at the arranged venue).

COURSE CONTENT

Reason for termination & legal factors

• Resignation
• Redundancy
• Disciplinary
• Retirement
• Abandonment of employment
• Not returning from parental leave
• Long term sickness (Incapacity)
• Not returning to work from ACC
• Death
• Frustration of contract

Standard Termination Employment Agreement clauses

• Termination clause
• Notice period
• Redundancy compensation
• When a final pay will be paid

Additional special agreed terms:

• Garden Leave
• Bonding Agreement

Legislative payments made as part of a termination pay

• Minimum wage
• Holidays Act 2003
  • Terminate before 12 months
  • Terminate after 12 months
  • Extending leave on termination concerning upcoming public holidays
  • Alternative Holidays
  • How does ACC affect any annual holiday on termination
• Parental Leave and Protection Act
• The employee does not return from parental leave
• Employee returns from parental leave and then terminates
• When leave must be paid in a termination pay (Holidays Act)
• Extra Pay
  • Exit inducement payment
  • Restrictive Covenant Payments
• Personal grievance payments

Common agreed payments that payroll may do as part of a  termination pay

• Notice
  • Working notice
  • Payment in lieu of notice
  • Extending notice
• Bonus, commission payments
• Long Service Leave
• Toil
• Additional agreed annual leave
• Redundancy compensation
• Retirement allowance
• Reimbursing allowances

Deductions from a termination pay

Wages Protection Act 1983

• Payments owed to the employer
• Overpayments to be recovered

Government deductions and how they are applied to a termination pay

• Child support
• Student Loan
• MSD deduction
• Court fines
• IRD 157 Notices
• What payments are included or excluded in KiwiSaver Contributions made in a final pay
• What payments do not have an ACC earner levy deducted in a termination pay

Tax treatment for payments paid on termination

• How and in what situations are different payments taxed differently in a termination pay
• How different leave payments on termination are taxed
• What payments are taxed as an extra pay (Lump sum payment)

Termination documentation

• Employee resignation letter
• Termination Checklist
• Final timesheet
• Final payslip
• What records must be kept

Final pay exercise

• A series of practical exercises covering a wide range of final pay scenarios.

LEARNING OUTCOMES

At the end of the course, participants will be able to:

• Understand the different termination situations that payroll needs to process and the legal factors involved.
• Explain the differences between legislative and agreed payments.
• Calculate what is to be paid, deductions, and documentation
• Calculate a range of different termination pay scenarios

On completion of the course, attendees will receive a Certificate of Attendance.

NZPPA CERTIFICATION

This course, in part, will help you complete the online assessment requirements for NZPPA Certification, which is required to become a recognised payroll professional.

CANCELLATIONS – TRANSFERS – REFUNDS

We require ten clear business days’ notice of cancellation to allow for a full refund or transfer to another course. Only registrations that are cancelled with less than ten business days’ notice will be eligible for a transfer or refund. Substitute participants are always welcome.