If an employee resigns (or leaves the company), you will need to terminate their Talexio profile. For detailed information on how this is done, check out this article. After terminating an employee, that employee will still need to be added to one final payroll and paid of for the hours worked in their final days/weeks with the company. Talexio works out these prorata automatically. But how are they actually calculated? There are two methods:
- Average hours;
- Actual hours.
You need to ensure that you have the 'Terminate Employee' permission to terminate an employee. You will also need the 'Manage Payroll' permission to add the employee to payroll. You will need the 'Manage client settings' permission to set the actual hours setting.
How are the terminated hours calculated?
First off, you will need to add the employee to payroll. Follow the steps here to do so.
Next you may click on the payslip of the relevant terminated employee(s):
- The payslip date will show the payroll start date up until the employee's end date (assuming the end date is within the same month. If, using the above example, the employee was terminated on the 2nd of July, the employee would be included in the July payroll and the dates would be 1st July-2nd July).
- Basic hours and basic amount: these are calculated using one of the below two options. Read on for detailed information.
- SSC Mondays: this will automatically change according to the number of Mondays which the employee is to work in his/her final month.
- Government bonuses: automatically, the employee will be paid prorata for the remaining government bonuses which fall under their position's duration. For more information on this, click here.
- Leave pay-offs: similarly, these are calculated prorata once the employee's end date is inputted. Click here for more information.
By default, the basic hours of a terminated employee are determined using this formula:
Total hours worked by a Full time employee/Number of months in a year = Result/working days in termination month *days worked in the employee's last payroll period.
For example: an employee was employed from the 1st of January 2022 till the 16th of June.
The employee's job schedule indicates that their working days are Monday to Friday and they do not work public holidays. In June, there are 20 working days (bearing in mind that the 7th of June and the 29th of June are public holidays). The employee worked 10 days:
Therefore, the basic hours in June will be: 2080/12 = 173.3333/20*10 = 86.667 hours
There is another option called actual hours. To switch on this setting, you will need to go to Settings -> Payroll:
So how are the hours calculated with this method?
The formula is:
Actual hours worked so far - hours paid so far
173.3333*5 = hours paid till end May (in the case of a full time 40 hours per week employee. For a Part time 20 hour employee, this would be 86.6667*5).
Therefore: 173.3333*5 = 866.6665 hours worked in previous payrolls.
Actual hours worked so far, including this payslip (actual hours worked each month): 944 hours
Total hours worked minus hours paid till end of May = Number of hours to be paid in June (last payroll in which the employee is paid).
Remaining hours: 944 - 866.665 = 77.3335 hours
How is the Leave Amount calculated?
How are Basic Hours calculated?
How are Government Allowances/Bonuses calculated?