Jack Wiebe

Modified on: Thu, 21 Mar, 2019 at 4:53 PM

Terminate an Employee

When you terminate an employee some care must be taken to ensure that the employee profile is updated correctly, the last payment is processed for the employee, and the updated Record of Employment is sent.

We’ll go through the steps of terminating an employee, covering all these steps,

Table of Contents

Employment Status
- Update Employee Profile
Remove Future Dated Rates
Update Employment History
Terminate Employee Benefits
- Terminate Employee Benefits
- Terminate Employee Benefits (Manually)
Process Employee’s Final Pay
Issue a Record of Employment (ROE)

Employment Status

The first step in terminating an employee is to change the employee status to ‘Terminated’ in the Employee Profile.

First open the Employee Profile of the employee to terminate:
1. Open the Canadian Payroll > Employee Profile > Employee Profile.
2. Select the Employee to terminate.
Open the Employment Data tab.
Change the Employment Status to Terminated.
The Employment Status – Update form will open. From here the employee termination date will be entered, and the vacation option and benefit group can be updated.
Once the employment details have been updated, press OK to close the form and save the updated employment status.

Employment Status Update

1	Employee Termination Date & Code Enter when the employee termination will be effective, and for what reason. If the employee is known to be returning at a future date, the `Expected Recall` Date can be used for recording this.
2	Vacation Option & Earn Code Any accrued vacation earnings will need to be paid out when processing the final payroll of the terminated employee. Select `Pay Out Accrued` for the `Vacation Option` and select an appropriate `Earning Code` to pay the accrued vacation under.
3	HR Benefit Group The employee benefits should be expired when they are terminated. Benefits can be expired as part of the Employment Status update by selecting `Benefit Group` `99 (No/Terminated Benefits)`: Doing this will trigger an update of the employee benefits, allowing the previous benefits to be expired at the same time. If you choose not to change the HR Benefit Group now, the benefits can be terminated manually from the `Benefits Administration > Benefits` tab of the `Employee Profile`.

Update Employee Profile

Now the Employee Profile must be saved before the termination status will be updated.

Depending on which fields in the Employment Data tab, a series of prompts will appear:

When the Employment Status is changed to Terminated, a prompt to remove employment data will appear. (see [remove future dated rates].)
When the Benefit Group is changed, the Update Employee Benefit prompt will appear. Any previous benefits can be expired from here. (see [expire benefits].)

Press Apply, at the bottom of the Employee Profile now.

Remove Future Dated Rates

When the Employment Status on the employee profile is changed to Terminated, a prompt to Remove Data will appear when the Employee Profile is saved. From here Future Dated Rates can be removed for the terminated employee.

1	Enable `Remove Future Dated Rates`.
2	Press `OK`.

Any Future Dated Rates will be removed from the employee profile of the employee. Future Dated Rates can be maintained on the Earnings > Future Dated Rates tab of the Employee Profile.

Update Employment History

Next, you will be prompted to Update Employment History for the employee.

Optionally, enter a Reason for termination.
Tip:
Employment Reason Codes can be created in Human Resources > Installation & Maintenance > Personal Information Codes > Employment Reason Codes.
Optionally, add any Comments.
Press OK to update the Employment History.

Terminate Employee Benefits

If the employee HR Benefit Group was changed, you will be prompted automatically to update the employee benefits, which will allow you to terminate all employee benefits. The employee benefits can also be terminated manually from the Benefits tab of the Employee Profile.

Terminate Employee Benefits

1	Enable `Select benefits to expire`
2	Enter the Coverage and Premium Expiry dates
3	Move all of the benefits to the `Selected` box on the right by pressing
4	Update the Employee Benefits by pressing OK.

Tip:

The Coverage and Premium Expiry dates should probably be the same as the termination date

Confirm benefits are expired

You can confirm that the benefits are correctly expired by checking the Benefits tab of the Employee Profile
(Canadian Payroll > Employee Profile > Employee Profile > Benefits Administration > Benefits).

1	Coverage expiry date.
2	Premiums successfully expired will not be active.
3	Premium expiry date.

Terminate Employee Benefits (Manually)

Employee benefits can be terminated manually from the Benefits Administration > Benefits tab of the Employee Profile.

1	Select the `Coverage` and `Premium Expiry Dates`.
2	By default all benefits will be selected.
3	Expire the selected benefits by pressing OK.

Process Employee’s Final Pay

Caution

Manual adjustment may be required if the termination is occurring mid-pay period and the employee earnings are not set up to prorate.

Open Canadian Payroll > Payroll Processing > Process Pay Run.
Enable the Only Pay Terminated Employees option.
Enable the Process One Employee option.
Notes:
Process One Employee option can be used to process a pay run for a single employee.
Only Pay Terminated Employees must be enabled to process employees that have been terminated.
1. Press OK to process the pay run.

Tip:

If the employee should be paid by cheque see [issuing a payroll cheque].

Issue a Record of Employment (ROE)

Tip:

You can issue ROE’s for a batch of employees from ROE Data Maintenance, if you need to process many terminated employee ROE’s at once. Canadian Payroll > Record of Employment > ROE Data Maintenance

Open the ROE Data Maintenance tab of the Employee Profile for the employee that has been terminated:
1. Open the Canadian Payroll > Employee Profile > Employee Profile.
2. Select the Employee that was terminated.
3. Open the Earnings > ROE Data Maintenance tab.
Generate a new ROE by pressing Extract (see ROE Extraction).
Save the ROE to a file that can be submitted to the CRA by pressing Export (see ROE Export).

After an ROE has been exported it must be submitted to the Canada Revenue Agency via ROE Web.

ROE Extraction

1	Enter the `Issue Date`.
2	Select the `Expected Date of Recall`.
3	Select Web/Electronic for the type of ROE to extract
4	Enter any extra comments (these will be included on the ROE itself).
5	Extract the ROE by pressing `OK`.

ROE Export

1	Select the Export File Name for the ROE file.
2	Export the ROW file by pressing OK now.

Tip:

Press the

button to change the location and file name to export the ROE to.

If you have already issued an ROE for an employee, please follow this article for steps to issue multiple ROE's.