Payroll AU: Process PILON separately from final pay.
When we terminate an employee, we are required to pay in lieu of notice on the day the notice is given when we don't require the employee to work through the notice period and the other entitlements can be paid within 7 days. In xero, it does not allow this payment in lieu of notice to be paid before the final pay. It can only be selected when the final pay is selected. Can you please consider this and see what can be done? thank you.
Hi Meiai! This is actually already possible in Xero Payroll. You can process more than one pay run for an employee.
A common way to handle this is to process an Unscheduled Pay Run for the PILON (ETP) first.
Afterwards, you can process the Scheduled Pay Run for the final pay. This allows you to keep the ETP separate.
If you'd like step-by-step guidance on setting this up, feel free to reach out to Xero Support, and the team will be happy to help!