What Severance And Notice Pay Do
Severance and Notice Pay are payroll amounts related to employee termination or separation. They may be calculated based on company policy, country rules, employee salary, and notice period setup.
Practical Example
An employee is terminated and is owed two weeks of notice pay. Payroll confirms the notice calculation method, reviews the amount in Draft Review, and confirms it appears correctly on the payslip.
When To Use This
Use severance or notice pay when:
- An employee is terminated.
- Company or country rules require separation pay.
- Notice period payment must be calculated.
- Payroll needs to include final pay items.
Common Mistakes
- Processing termination without reviewing final payroll values.
- Using calendar days when working days should apply, or the reverse.
- Forgetting to review statutory deductions on final pay.
- Not checking the payslip before final payment.
Related Articles
- Payroll Time Setup
- Employee Salary Profile
- Draft Review V2
- Viewing, Printing, And Emailing Payslips