Processing Terminations

This chapter provides an overview of termination processing and discusses how to:

Process terminated employees.
Create the Withholding Tax report for terminated employees.

Understanding Termination Processing

The PeopleSoft system delivers rules and procedures that support the automatic calculation of year-end adjustment (YEA) for employees terminated by reason of death.

The termination judge formula (YE FM YEA ELIG for regular salary) and the YEA eligibility bonus formula (YE FM ELIG BON) and YE FM ELIG YE (for YEA with Salary and YEA with Bonus) determine the following:

When the payee has been terminated.

Whether a payee who is subject to payroll calculation is terminated during the current pay period.

YE FM YEA ELIG determines if the employee has been terminated during the current pay period. YE FM ELIG BON determines if the employee has been terminated as of the bonus payment date.

This decision is based on whether the employee's Job record has the action TER (terminated) as of the Period End date if the Payroll is for Salary, or, as of the Payment date if the Payroll is for Bonus, YEA with Salary or YEA with Bonus.
Whether the payee is subject to YEA calculation at the time of the last payment calculation.

This determination is based on whether the employee's Job record with action TER, selected in the previous step, also has the reason DEA (death).

Note. You can modify formulas YE FM YEA ELIG and YE FM ELIG BON to add additional reason codes if you want the system to automatically calculate YEA for employees who are terminated for reasons other than death, such as international transfer.

When the formula YE FM YEA ELIG or YE FM ELIG BON or YE FM ELIG YE returns the value 1, indicating that the payee qualifies for YEA calculation, the system processes the YEA calculation sections in the salary and bonus process lists. These sections are initial process of YEA (YE SE INIT), and YEA on salary payment (YE SE TAX ADJ SAL) or YEA on bonus payment (YE SE TAX ADJ BON).

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Japan. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

Processing Termination Employees

This section discusses how to:

Insert termination Job records.
Maintain year-end data of terminated employees.
Process payroll.

Inserting Termination Job Records

The termination Job record must be inserted before the payee's last payment is processed.

For example, an employee's last day is May 10, and the pay period of her last payment is from April 16 through May 15. The payroll is processed on May 20. In this example, before her last payment is processed on May 20, you must enter her termination Job record with an effective date of May 11.

Maintaining Year-End Data of Terminated Employees

Follow the standard procedures for entering tax, dependent, and YEA deduction information for the terminated employee.

Processing Payroll

You do not have to take any special action to process payroll for terminated employees. If the employee is terminated during the pay period by reason of death, the system automatically processes YEA salary calculations.

For bonuses, the system determines if the payee is dead as of the payment date. YEA calculations are made if the date of death is after the period end date and before or on the payment date.

You can modify the rules to automatically process YEA for other termination reasons, as well.

Creating the Withholding Tax Report for Terminated Employees

This section discusses how to:

Load YEA report data for terminated employees.
Review YEA report data and update the Submit to Tax Agent indicator.
Print the Withholding Tax report for terminated employees.

Pages Used to Create the Withholding Tax Report for Terminated Employees

Page Name	Object Name	Navigation	Usage
Load YEA Report Data	GPJP_RC_YEALOAD	Global Payroll & Absence Mgmt, Termination Processing, Load YEA Report Data JPN, Load YEA Report Data	Run the process to load YEA data for terminated employees.
YEA Report Data	GPJP_YEA_TABLE	Global Payroll & Absence Mgmt, Termination Processing, Rvw/Update YEA Report Data JPN, YEA Report Data	View results of the YEA Data Load process for terminated employees. View data and update the Submit to Tax Agent indicator and Summary field.
W/H Tax Report (withholding tax report)	GPJP_RC_YEAWHRPT	Global Payroll & Absence Mgmt, Termination Processing, Withholding Tax Report JPN, W/H Tax Report	Print the Withholding Tax report for terminated employees. If the final payment for the employee included year-end processing (termination due to death), then the Withholding Tax report shows the result of YEA.

Loading YEA Report Data for Terminated Employees

Access the Load YEA Report Data page.

Note. This page is similar to the Load YEA Report Data page that is accessed through the Year-End Processing menu path. To load YEA data for terminated employees, you must access the page through the Termination Processing menu path. The system compares the termination date with different system dates depending upon the type of payment being made. For salary, the system compares the termination with the period end date. If the termination occurs before the period end date, the system considers the employee terminated. For bonus, the system considers the employee terminated if the effective date occurs before the payment date.

Calendar Group ID

Select the calendar group ID of the final salary or bonus payment.

Business Unit, Department, and EmplID, are optional parameters that you can use to create YEA report data for terminated employees who belong to a specific business unit or department, or for a specific employee.

Reviewing YEA Report Data and Updating the Submit to Tax Agent Indicator

Access the YEA Report Data page.

See Viewing and Updating the YEA Report Data Table.

Printing the Withholding Tax Report for Terminated Employees

Access the W/H Tax Report page.

Note. This page is similar to the W/H Tax Report page that is accessed through the Year-End Processing menu path. To print the Withholding Tax report for terminated employees, you must access the page through the Termination Processing menu path.

Calendar Group ID	Select the calendar group ID of the final salary or bonus payment.
Employees	Select whether to print the report for all terminated employees or only those with Submit to Tax Agent selected on the YEA Report Data page.

Pay Entity, Business Unit, Location, Department, and EmplID, are optional parameters that you can use to narrow the selection to a group of terminated employees or a specific employee.

The Sort Order group box enables you to sort the report by business unit, location code, and department.

Note. You must run the Load YEA Report Data process before printing this report.