Termination components can be found in Payroll, Maintenance, General, Pay Components. The different components accommodate tax treatments required for different termination reasons, age, and length of service.
đNote: In most instances, we recommend that payments made on the death of an employee be made outside of MicrOpay. For more details, see termination due to death.
You can include Termination Components in a Manual Calculation, for example to pay an additional termination payment. In a Manual Calculation, you can only select the Total ETP components (Total ETP or Lump Sum D), not the Detailed ETP components. This applies when you pay or reverse termination components. The Detailed ETP components are only available in a Termination transaction. For more information, see Eligible Termination Payment components below and ETP via Manual Calculation.
Annual and long service leave components
Below is a table for annual and long service leave components.
AL is Annual Leave.
LL is Leave Loading.
LSL is Long Service Leave.
Code | Description | Used for |
TPr78LSLCB | Term Comp B | LSL accrued pre '78 and paid out as component B. |
TPr93LSLCA | Term LSL Comp A | LSL accrued post '78 and pre '93. Paid out as component A. |
TPo93LSLG | Term LSL Gross | LSL accrued post '93. |
TPo93LSLCA | Term LSL Comp A - RED/INV | LSL paid as component A when the termination reason is Redundancy, Applied Early Retirement or Invalidity. |
TPr93ALCA | Term AL Comp A | AL accrued post '78 and pre '93. Paid out as component A. |
TPo93ALG | Term AL Gross | AL accrued post '93. |
TALCA | Term AL Comp A - RED/INV | AL paid as component A when the termination reason is Redundancy, Applied Early Retirement or Invalidity. |
TPr93LLCA | Term LL Comp A | LL for annual leave accrued post '78 and pre '93. Paid out as component A. |
TPo93LLG | Term LL Gross | LL for annual leave accrued post '93. |
TLLCA | Term LL Comp A - RED/INV | LL for annual leave and paid as component A when the termination reason is Redundancy, Applied Early Retirement or Invalidity. |
TALD | Term AL Dth | AL paid out when the termination reason is Death. |
TLLD | Term LL Dth | LL for annual leave paid out when the termination reason is Death. |
TLSLD | Term LSL Dth | LSL paid out when the termination reason is Death. |
Eligible Termination Payment (ETP) components
ETP payments appear as Detailed ETP components and Total ETP components. The Detailed ETP components give the reason the employee received an ETP. You use the Detailed ETP components in the Termination transaction, and the values are summed into the Total ETP component. If you pay an ETP through a Manual Calculation, you can only select the Total ETP components.
When mapping ETP components in General Ledger (GL) or Payroll Tax, select either Detail or Total components. If you select both, you will overstate the values.
Detailed ETP components
These are the Detailed ETP components, i.e., everything else payable on termination other than Annual and Long Service Leave.
Code | Description |
TSL | Term Sick Leave |
TRDO | Term RDO |
TLSPIL | Term Lump Sum Payment - In Lieu of Notice |
TermUL | Term User Defined Leave - see note below. |
TermER | Term Early Retirement |
TermGRed | Term Genuine Redundancy (Lump Sum D is included in the Genuine Redundancy value.) |
TermInv | Term Invalidity |
TermComp | Term Compensation |
TermNGRed | Term Non Genuine Redundancy |
TermGH | Term Golden Handshake |
TermGrat | Term Gratuity |
TermDeath | Term Death |
TermSever | Term Severance |
đNote: When User Defined Leave is created, you choose how to pay out the leave on termination.
If Annual Leave is selected, the leave will be included in Annual Leave termination components.
If Sick or ETP is selected, the leave will be treated as an ETP termination component.
Total ETP components
These are the Total ETP components, i.e., summarised values derived from the components listed above.
Code | Description |
TPrJul83 | Term ETP - Tax Free (Pre July 83) |
TPoJun94 | Term Invalidity - Post June 94 |
TLSD | Term Lump Sum D |
TPoJun83 | Term ETP - Taxable (Post June 83) |