How to Process a Termination

For EXEMPT Employees:

  • Process the Termination: The department processes the termination through MSS, Personnel Actions.  Note: the “date of action”  is the date the termination is effective. The department must include vacation accrual amount (if applicable) in appropriate field.
  • The calculation is: Annual salary divided by 260 working days in the year equals daily rate. Then you multiply the daily rate by the number of vacation days owed (e.g., $50,000 annual salary divided by 260 days = $192.31 daily rate X 3 days owed = $576.93)

(NOTE: Position changes (e.g., position changing to a non-comp status) should be processed as revisions to the position, not as a position termination.)

For NON-EXEMPT Employees:

  • The department processes the termination (through MSS or Payroll Coordinator, Personnel Actions).
  • The department timekeeper processes the Time Quota Compensation through transaction PA61,Time Quota Compensation (infotype 0416), follow steps detailed in the specific End User Reference Materials which can be found through BUworks Central Portal home–UPerform—HCM—PA—time management—timekeeper—process time quota compensation ).

Important to note:

  • Quota payout occurs after
    • Termination is processed
    • Final week’s time has been entered and approved
    • Time Evaluation has run after final payroll approval
  • Ideally before final week’s payroll is run
  • Date used on PA61-Time Quota Compensation is last active day, i.e. date of termination
  • VERY IMPORTANT: The “Date of Action” on the form for the termination action is the actual date of termination. Therefore, if an employee’s last day of work/pay (termination date) is 6/30/2011, then the “Date of Action” would be 6/30/2011.  On the form, the “Date of Action”  defaults to the date the form is being created, so the initiator needs to make sure that the actual effective date of the action is entered.