Question came – Just checking, we have had 2 employees cease employment with us, I understand how to notify and terminate them from their super fund but do I need to notify the ATO?? I notice on the bottom of the tax declaration there is a box that you tick if you no longer pay for this employee….do I tick that and send the copy to the ATO??? This is the copy I have on their employee file. Cheers.
Answer – No you don’t need to notify the ATO. No need to enter on the TFN Declaration, unless started and stopped within a short few days.
Complete final normal pay, find their entitlement to Annual Leave (and good practice to print it for a record in case they ask for verification) and pay that to Unused Payroll (tick this wage category on via their card while in the pay run (*without super and zero out the Ann Leave/Hol Pay and Sick pay that may accrue again) ie just Unused Hol Pay and PAYG tax is all the final pay is.
Just do the Payment Summaries at year end (unless the employee requests one now, you must provide).