When an employment ends
Payments made after an employee leaves
An employer may make a payment to an employee after they have ceased employment. The process for reporting these payments will depend on whether the payment is made:
Payments made in the year an employee leaves
The process for the employer to report a post cessation payment where the employee ceases employment in the current tax year is as follows:
- Look up the available Revenue Payroll Notification (RPN) for the employee.
- Make a payroll submission for the post cessation payment.
- Include the original employment ID and the original cessation date.
- Include the payment date (this is the date the post cessation payment is made).
Payments made outside the year an employee leaves
The process for the employer to report a post cessation payment where the employee ceases employment in a previous year is as follows:
- Request a new RPN request.
- Do not include an employment commencement date.
- Make a payroll submission for the post cessation payment.
- Include the original employment ID and original cessation date.
- Include the payment date (this is the date the post cessation payment is made).
Next: When an employee retires