Terminating Employment

You can follow these general procedures in Sage 300 Payroll when a staff member’s employment has terminated with your company.

To Terminate Employment

1. Back up your database.
2. Open Payroll Employees
3. Update the employee’s record as follows:
1. On the General tab, enter the Termination Date.
2. On the Class/Schedule tab, in the Status field, select the appropriate status (Inactive or Terminated).
3. On the Other tab, add comments as necessary.
4. If you still have payroll to process for the employee, you can use Calculate Payroll or Manual Checks (or both).

Note: Calculate Payroll does not produce checks for employees with a status of Inactive. For an employee with a status of Terminated, Calculate Payroll produces a check for the employee only if the Termination Date entered for the employee (on the General tab of the Payroll Employees window) is equal to or later than the Pay Period End Date entered on the Calculate Payroll window.

5. Employees whose status is Terminated (or Inactive) will still be reported on the Earnings and Hours report, the Employee Information report, the W-2 slips, Quarterly Wage report, and 941 report.
6. After you complete processing all payroll and required reports for the employee, and set the employee’s status to Terminated, to remove records associated with the employee from the company database, such as the employee’s record and timecard. Be sure to have a backup of your database before you remove any records.

You can use Delete Inactive Records in in the Payroll Periodic Processing folder to remove terminated employees who are not referenced in payroll history.