Lump sum payments made to employees on termination will need to be added using a custom once-off income item. In addition to this custom item, you will need to add the system termination lump sums item – adding this item to a payslip will affect every other item on the payslip. We suggest that you issue the employee with a normal payslip for his / her last month, then create a once-off payslip, with this item and all the items that make up part of the lump sum.

Please note: We strongly recommend that the date of the once-off payslip be the same as that of the final normal payslip – in order for the tax calculation on the final normal payslip to be correct.

The above concepts are discussed in more detail in the following articles:

• Payroll Setup > Company Setup > Custom Items
• Add a Payslip

Once you have created the once-off payslip, you can add the termination lump sum item by clicking on Add-once off item > Termination Lump Sums.

When paying out accumulated leave on termination, you should use the built-in leave paid out item for this. Paying out leave on termination is discussed in the following article:

• Paying Out Accumulated Leave