The process of terminating an employee is important because it keeps your records accurate and helps you to generate their Record of Employment (ROE).
You can also watch a video demonstration of this process
There are 3 stages to the process of terminating an employee:
Step 1 - Update their employee record
From the app selector, select HR, then Company.
Select the employee you want to terminate.
From the bottom of the page, select Terminate.
Enter their last working day, the reason they're leaving and any additional information then select Terminate.
Step 2 - Process their final pay run
From the app selector, select Payroll, then Employee.
Check the employee's status shows as Process Final Payrun.
Check if the employee is owed any vacation earned from their previous pay statement. You can see retrieve this information from Reports, then Pay Statement.
From the Pay Run tab, select Process Pay Run.
Select the employee to review their final pay details. Adjust their hours worked and vacation earned as required.
The vacation earned is usually the amount owed on their previous statement plus the amount owed in the current statement minus any vacation paid in the current period.
Add the vacation owed amount as a Vacation Paid Out payment.
Complete the pay run as normal.
In the Employee list, the employee's status updates to Terminated.
Step 3 - Prepare their ROE
From the Submissions tab, select Record of Employment.
Select New ROE, then the employee you are terminating.
Confirm your CRA business number and the employee's start and leave dates.
Enter a reason for issuing the ROE and check their details are correct.
Select Generate, then the submission to view the details.
You can then download the ROE file and submit it on the ROE web portal.
Delete an employee
You can fully delete employees that have not been included in a pay run. Employees that have been included in a pay run must be kept to comply with data retention legislation.
If you have created an employee record that has not been included in a pay run, you can delete them from Sage HR. The employee record is then also removed from the Employee list in Sage Payroll.
If you have created an employee that has been included in a Pay Run, you can terminate them using the steps in this article. The status of the employee record is then updated. They will still appear in the Employee list in Sage Payroll.