The nine termination reasons 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.
Go to the Employee Details and select the employee.
Then Employment, Employment, STP Cessation Reason.
STP2
The Cessation Termination Reasons required for STP2 reporting are 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.