When an employee resigns or is terminated, Salarium can automatically compute the withholding tax for the current year to determine if there is tax outstanding that should be paid by the employee. Bonuses, leave conversions and outstanding loans can also be calculated.
Click Employees > Select Employee > Termination Information > Add Employee Termination Information. The Add Termination Information box will pop up. Enter the Termination Date and the Termination Reason. You can also determine what to include in the Last Pay, as follows:
- Annualization – the employee's income will be computed for the entire year to determine if a tax refund or additional tax payable is due. For more information on annualization, click here.
- Bonuses – Any bonuses assigned will be included. For more information on Bonuses, click here.
- Leave conversions – Any leave credits will be converted as defined in Company Setup > Time > Leaves > Leave Entitlement. For more information on Leave Accrual and Conversions, click here.
- Outstanding Loans – outstanding employee loans will be deducted from the Final Pay. For more information on Loans, click here.
Note: All fields marked with an asterisk are required.
Note: You can add termination information to an employee in advance, he will still be included in payroll until his termination date. The Termination Date will be the the last day of the employee. He will no longer be counted in payroll by the system after that day.
Once you have added the employee's termination information, generate payroll. Click here for more information on payroll generation. Go to Payroll and click the payroll group and payroll period for the employee's last payroll. Click on the terminated employee.
On the employee’s Pay Details Page, you can view the Annualized Tax Adjustment in the Tax section.
Note: Once leave conversion has been run in an account, there is no way to undo the leave conversion (ie. deleting payroll, regenerating payroll, deleting leave credit, etc.)
A warning prompt will pop up.
Click Yes. A success message will advise that you have successfully closed payroll.
The terminated employee's BIR 2316 form will now be available for viewing and printing. Click Payroll > Government Forms > Employees. Click the Green button in the Download column.
You can view a PDF version of the employee's BIR 2316 form. You can check the annualized tax withheld in the Total Amount of Taxes Withheld section.
Note: If you terminate an employee, you will still need to keep his status set to active until after you have generated his last payroll period. If you inactivate the employee right after you terminate him, he will not be included in his last payroll generation.