Managing Oustanding Payments After Staff Resigned

When processing payroll for employees who have resigned, situations may arise where additional payments or claims still need to be handled. These may include overtime adjustments, outstanding claims submitted after the resignation date, or other payments that were not captured in the final salary.

This article explains the steps to manage such cases to ensure compliance and accurate payroll reporting.

Overview:

• Part 1: Managing Additional Payments After Resignation
• Part 2: Managing Claims After Resignation

Part 1: Managing Additional Payments After Resignation

Additional payments should be managed under the MidMonth cycle to ensure they don't affect Month End payroll and PCB reporting. 

Step 1

Identify any pending payments not captured in the last salary. Check the payroll item settings for resigned employee.

• Go to Settings > Payroll > Payroll Items > Earnings.
• Select the related payroll item, and ensure that the Prorate for Resigned Employee option is turned off. If this option is left enabled, the system may exclude the claim or calculate it incorrectly.

Step 2

Record these payments in Individual Transaction under MidMonth Cycle.

Refer similar steps here: Add Additional Transaction into Payslip before process payroll (Individual Transaction)

Step 3

Go to Payroll > Process > Monthly. Process payroll for additional payments using MidMonth Payroll Cycle.

1. Select the payment date and the relevant payroll policy.
2. Leave all checkboxes unticked since this is an ad-hoc, then process accordingly.
3. The items will then appear in the employee’s payslip as below:
   
   

Part 2: Managing Claims After Resignation

Claims will follow their cut-off dates and pay cycle based on Payroll Policy and cannot be combined with additional payments in individual transaction.

Claims for resigned employees can be managed with the following approaches:

Option A: HR/Admin Submit Request On Behalf (Recommended)

• HR or Supervisors can submit On Behalf claim request for employees after their last day.
• This ensures better control and avoids the need to keep resigned staff active in the system.

Option B: Keep Employee Active Temporarily

• Keep the employee’s status as Active until all claims are cleared.
• This allows employees to log in and submit claims before their account is finally deactivated.

Process Payroll for Claims

Go to Payroll > Process > Monthly. Process payroll for claims using Month End Payroll Cycle.

When an employee’s resignation date has passed, the system will no longer pull salary for them in the following month.

1. Process under the correct Payroll Period and Cycle.
2. Select the payment date and the relevant payroll policy.
3. Select Pull Claim Data only and leave other boxes uncheck.
   
4. Complete the payroll process accordingly. The claims will appear in the employee’s payslip as below:
   

We hope this explanation clarifies the matter. If you require additional assistance, do not hesitate to contact our support team.