To calculate termination payments in BrightPay, you need to factor in final pay, outstanding entitlements, and any statutory redundancy or tax-free elements. Here's an overview of the steps:

Finalise Regular Pay

•  Enter all regular salary, wages, or hours worked up to the termination date in the last pay period.

Add Outstanding Entitlements

• Include any outstanding annual leave or holiday pay. 
• Calculate the unused leave and pay it at the employee’s regular rate.
• In BrightPay, add this as an Addition in the final payslip.

Calculate Statutory Redundancy (if applicable)

• Enter the redundancy payment as an Addition in BrightPay, ensuring it’s flagged correctly (to apply tax-free status if eligible).

• If you are unsure about the redundancy amount to enter or whether it applies, you should contact Revenue (ROS) for guidance

   

Add Ex-Gratia or Tax-Free Termination Payments (if applicable)

• In BrightPay, record these using the  Ex-Gratia Payment  addition. 
• If you are unsure about whether there is a tax-free portion amount to enter or whether it applies, you should contact Revenue (ROS) for guidance
• If the Ex-Gratia payment is non taxable - they do not show up on the PSR, but should be reported to Revenue separately using a "Form RP50" or through ROS (Revenue Online Service), depending on the scenario.

Assess any Regular Deductions

• Ensure that ongoing deductions (e.g., pension, health insurance, etc.) are correctly handled in the final payslip.

Mark Employee as a Leaver

• Set the employee’s leaving date in their employment details on BrightPay.
• This ensures the correct submissions to Revenue and stops further payroll processing.

Process and Submit Final Payslip

• Issue the final payslip to the employee.
• Submit the final payroll submission to Revenue through BrightPay.
• Check the PSR for this employee to ensure that the Leave date shows as expected.

Post Cessation Payment 

If you need to make an additional payment to an employee who has already left—such as unpaid wages, a bonus, or commission that wasn’t paid before their departure—you can easily issue a payment without having to set them up again.  

Simply go to Payroll > More > Add Post-Cessation Payment, select the relevant employee, and enter and finalise their payslip. Don’t worry, the employee will not appear in future pay periods since they’ve already been processed as a leaver.