Final Pay Processing Checklist for Trades & Construction
A checklist for calculating and processing an team member's final pay, ensuring all entitlements are correctly paid and statutory obligations are met.
Compliant with Safe Work Australia requirements, state WHS legislation, and Building Code of Australia (NCC) documentation standards.
Complete Checklist
- 1Confirm the last day of employment and any notice period arrangementsCritical
- 2Calculate wages owed up to and including the last day of employmentCritical
- 3Calculate accrued but untaken annual leave entitlement for payoutCritical
- 4Calculate any accrued long service leave entitlement if applicable
- 5Calculate payment in lieu of notice if notice was not worked
- 6Calculate redundancy pay if the termination was a genuine redundancy
- 7Include any outstanding overtime, penalty rates, or allowances owed
- 8Apply the correct tax treatment to each component of the final payCritical
- 9Deduct any amounts legitimately owed by the team member to the business
- 10Process the final superannuation contribution
- 11Generate the final payslip detailing all components of the final payment
- 12Process the final payment within the required timeframeCritical
- 13Prepare and issue the PAYG payment summary for the departing team member
- 14Update the STP reporting with the team member's finalisation eventCritical
- 15File all final pay documentation in the team member's personnel record
Frequently Asked Questions
How is accrued annual leave paid out on termination?
All accrued and untaken annual leave must be paid out on termination regardless of the reason for leaving. The payment is calculated at the team member's base rate of pay at the time of termination. Leave loading applies if it is included in the relevant Award or agreement. Annual leave paid out on termination is taxed differently depending on the reason for termination.
When must final pay be processed for a departing team member?
Under the Fair Work Act, final pay must be made within seven days of the termination date, or on the next scheduled pay day, whichever comes first. Some Awards or agreements may specify a shorter timeframe. Best practice is to process final pay as quickly as possible to maintain a professional relationship and avoid potential complaints.
Can we withhold money from an team member's final pay for company property not returned?
Employers can only make deductions from final pay if the team member has provided written authorisation and the deduction is principally for their benefit, or if it is required by law or permitted by a court order. You cannot unilaterally deduct money for unreturned property. Pursue the return of property through other means and seek legal advice if the team member refuses to return company assets.
Need help implementing these checks into your daily operations?
Our team can build custom checklists integrated into your daily operations workflow.