The nine termination reasons (STP Cessation Reason:) in the Australian Database cover a range of termination scenarios, and it is important to select the correct one when terminating an employee.
The Termination Reason is one of the parameters WageEasy uses when calculating termination tax based on the Australian Taxation Office (ATO) tax tables and STP (Single Touch Payroll) reporting. This is why you cannot add new ones.
To record a different reason that might be meaningful to your business, you can use the reason field. This is a free text field and is not reported to the ATO when lodging STP2 data.
Go to the Employee Details and select the employee.
Then Employment, Employment, Reason: type in the reason for termination that is a more meaningful reason for your Company.
Note: To report on these added reasons, you can run the following query. HR, User-defined query, Employee Employment Commencement and Termination by Department
STP2
The STP Cessation Reason: required for STP2 reporting is available from WageEasy Version 8, released in August 2023.
Review the Australian Taxation Office (ATO) website When an employee transfers or leaves information on Cessation Termination Reasons, for further details.