How to Compute Final Pay on Sprout Payroll

When an employee resigns or is terminated, Sprout Payroll can automatically generate withholding tax for the current year to determine whether the employee is payable or not. Aside from the withholding tax, de minimis allowance, and remaining balances can also be calculated.

 

To determine the final pay setup, simply click on the Setup tab on the Navigation toolbar, select Company and click on Profile from the drop-down list that appears. Scroll down to Final Pay Computation. 

 

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It’s your company policy if you opt to deduct absences, lates, and undertime. You also have the option if you will include 13th-month pay in the final pay computation.

 

 

It is very important that prior to final pay preparation, update employment status of employees. Click on the Employees tab. Edit the Job Details panel by changing the Employment Status. 

 

 

 

*Note: You can edit employment status in advance, the employee will still be included in the normal payroll until his resignation/termination date. After the resignation date, the employee will not be included in the normal payroll run.

 

Once you have updated the employment status, you may now generate final pay. Under the Payroll Run tab, select Create New Payroll and just fill out all the necessary details.

Related Article:

How to Process Final Pay in Sprout Payroll?