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    Terminations and Final Payslips

    Notice pay, leave payout, severance and the termination certificate.

    Ending employment

    Set the end date and termination reason on the employee record. The reason drives the IRP5 code and whether the employee can claim UIF.

    What goes on the final payslip

    • Pay for days worked in the final period
    • Notice pay, if paid in lieu of working notice
    • Accrued but untaken annual leave paid out
    • Severance pay, where retrenchment applies
    • Any outstanding loan balance recovered

    Tax on severance

    Severance benefits are taxed on the retirement lump sum table and require a tax directive from SARS. Capture the directive number before finalising the run.

    Documents to issue

    Issue the final payslip, a certificate of service, and the UI-19 declaration. IRP5 certificates are issued at the next bi-annual or annual submission.

    More in Employee Setup