Employee Termination Types

Employee Terminations records contain a read-only Employee termination type field that shows one of following types.

OR. Original

Most Employee Terminations are 'originals' because they are the first ETP made after an employee terminates. Original Employee Terminations records have no links to any previous ETPs.

AD. Adjustment

An adjustment supersedes the original payment. Exolvo creates a payment for the adjustment amount. An adjustment payment is a correction of a previous ETP calculation in the same year-to-date period. As a result, Exolvo ‘reverses’ all ETP transactions created in the 'Original' pay and creates the correct ETP transactions.

Important: ETP adjustments must be in the same tax year (Period YTD) as the 'Original' or 'Related' payment.

When you enter details for an ETP adjustment on the Employee Terminations form, Exolvo populates the fields with values from the 'Original' ETP and you can adjust them. For example, you could correct the termination reason or payment values.

Note: Interface limitations mean that Exolvo can accurately display positive amounts up to 999,999.0000 only, and negative amounts up to -99,999.0000 only.

RE. Related

Related Employee Terminations records are linked to a parent original or adjustment ETP. Use a related record to make additional payments to an original or adjustment ETP. A related record contains only the additional payment details, not the total amount of the original and the related payment.

A related ETP is an additional payment for an ETP so you can enter only the payment date and payment changes. You cannot change the termination reason or termination date. If the Payment date of the related ETP is in the year-to-date period after the original ETP, the tax calculation considers the difference in the tax rates in the two year-to-dates and calculates the correct ETP tax.

RA. Related adjustment

Related adjustment Employee Terminations records are linked to a related ETP and the original ETP. Use a related adjustment record to correct a payment error in a previous related ETP that occurred in the same tax year. A related adjustment record contains complete revised payment details, not just the difference between the previous and the adjusted payment values.

Summary

The following table summarises the Employee termination type information.

Topic: 28132