Follow these three essential steps to ensure a smooth off-boarding process:

Step 1: Process Final Pay

Before terminating an employee, you must ensure all final payments are processed. You have two options:

Option 1: Manual Adjustment Salary (No Proration)

You manually calculate and enter the employee’s pay based on remaining hours.

Use this option if you prefer simplicity or have unique payout scenarios.

Adjusting System-Prorated Hours Using Partial Pay Adjustment

In some cases, ZonePayroll may calculate the full pay period hours (e.g., 86.667 hours for a salaried employee), even if the employee should only be paid for a partial period. To correct this without editing the original salary setup, use a Partial Pay Adjustment.

📘 Scenario Example:

• Pay Period: July 16–28

• Annual Salary: $75,000

• System-Calculated Hours: 86.667

• Actual Hours to Be Paid: 24 hours

How to Adjust:

1. During the pay run, the system calculates 86.667 hours under Normal Time.

2. Insert a new line in the earnings section using the “Partial Pay Adjustment” pay code.

3. Enter the amount of hours you want to reduce from the full calculation:

   • 86.667 – 24 = 62.667

   • Enter 62.667 as the adjustment value (no need for a negative sign)

The system will subtract this amount automatically and adjust the Normal Time to reflect 24 hours.

Partial Adjustment:

Option 2: System Proration (Automated)

ZonePayroll can automatically prorate an employee’s final pay using:

• Working Days (recommended by the National Payroll Institute)

• Calendar Days

This method is useful for salaried employees and ensures final earnings are calculated proportionally based on the employee's last day worked.

📌 Important Setup Requirement:
To allow the system to prorate the final pay correctly, you must end the employee’s pay component subtype (e.g., Base Salary) as of the last day the employee is being paid for.

How to Do This:

1. Go to: Payroll Records > Employee List> Employee>Pay Components

2. Edit the active pay component (e.g., Base Salary)

3. Set the End Date to match the last day the employee will be paid for

4. Save your changes

This ensures the system stops the salary calculation correctly and prorates only up to the specified date.

Once updated, you can process payroll and the system will automatically calculate the correct prorated amount.

System Driven Proration

NetSuite can automatically prorate the salary using either:

• Working Days (Recommended by the National Payroll Institute)

• Calendar Days

📘 Working Days Proration (System generated)

Scenario:

Step 2: Enter One-Off Pay Details (For Special Payments)

For special termination-related payments, such as:

• Severance pay

• Pay in lieu of notice

• Vacation pay on termination (lump sum)

Use the One-Off Pay Details screen to enter these values separately from regular time. This ensures accurate payroll reporting and proper ROE generation.

📍 Navigation:
Payroll Administration > Payroll Activities > Enter One-Off Pay Details

Timing Tips:

• Recommended: Enter one-off pay before opening the pay run for a clean process.

• Alternative: If the pay run has already been opened, you can still enter these values by selecting “Process One-Off” during the pay run.

One-Off Screen:

 

📄 Step 3: Issue the Record of Employment (ROE)

Now that the employee's final pay has been processed and, the next step is to generate their Record of Employment (ROE) for submission to Service Canada.

Navigation Path

Go to:
Payroll Administration > Canada 🇨🇦 > ROE : List (for individual ROEs)
or
Payroll Administration > Canada 🇨🇦 > ROE : Start Batch (for multiple ROEs at once)

Option 1: Generate a Single ROE

Use this option when issuing an ROE for one employee.

1. Navigate to ROE : List

2. Click New

3. Select the terminated employee

4. Review and confirm all required fields:

   • Last day worked

   • Final pay period end date

   • Total insurable earnings and hours

   • Reason for separation

   • Issuer Phone Number

5. Click Generate ROE XML

6. Upload the XML to ROE Web (Service Canada)

Option 2: Generate ROEs in Batch

Use this method when preparing ROEs for multiple employees.

1. Navigate to ROE : Start Batch

2. Select the terminated employees requiring ROEs

3. Review and validate each entry

4. Generate all ROE XML files in one batch

5. Upload the files to ROE Web (Repeat the process from single file upload)

✅ Note: Only employees with completed final pay and “active” status will appear in the ROE list.

Step 4: Terminate the Employee

⚠️ Do not terminate the employee until all final pay and ROE values have been entered.

Once final pay is processed and ROE as been generated:

🔍 Steps to Terminate an Employee

1. Search for the employee profile
   Use the Quick Search or go to Payroll Administration> Payroll Records > Employee List

2. Click "Edit" on the employee record.

3. Navigate to the HR tab, then scroll to the Termination Info section.

4. Complete the following fields:

   • Termination Date – Last day the employee worked (or is being paid for)

   • Termination Type – e.g., Voluntary, Involuntary, Layoff

   • Employment End Reason – e.g., Resignation, End of Contract

   • Termination Notes – Optional but useful for context or documentation

   • Termination Details – e.g., Return Not Expected, Discharge, Quit

5. Save the changes to update the employee's status.

✅ What Happens Next?

• The employee will now be classified as Terminated in NetSuite.

• They will be automatically excluded from future pay runs.

💡 Tip: Double-check the Termination Date aligns with the final day paid. This ensures ROE accuracy and proper payroll cutoff.

✅ Termination Checklist – ZonePayroll (Canada)

Use this checklist to ensure all required payroll, benefits, and compliance steps are completed accurately when terminating an employee.

Employee Name: _____________________
Employee ID: _____________________
Termination Date (Last Day Paid): _____________________

🔽 Termination Processing Checklist

• Prorate employee’s salary up to their last paid date

• Pay out accrued or outstanding vacation time

• Pay out any banked overtime

• Apply/adjust RRSP or RPP deductions (employee portion)

• Apply RRSP/adjust or RPP employer contributions (if applicable)

• Include/Prorate any remaining allowances (e.g., car, phone, internet)

• Process any bonuses or commissions owed

• Adjust taxable benefits (e.g., life insurance, LTD, STD)

• Ensure all final earnings are included in the upcoming payroll

• Enter special payments (e.g., severance, pay in lieu of notice, lump-sum RRSP top-ups) in One-Off Pay Details

• Enter One-Off values before opening the pay run (recommended), or use Process One-Off during the run if needed

• Review payroll summary for accuracy prior to submission

• Navigate to Payroll Administration > Canada > ROE : List (for single ROE) or ROE : Start Batch (for multiple ROEs)

• Select the employee(s) and confirm:
    - Last Day Worked
    - Final Pay Period End Date
    - Total Insurable Earnings and Hours
    - Reason for Separation
    - Issuer Contact Number

• Generate ROE XML and upload to ROE Web (Service Canada)

• After ROE is submitted and final pay is confirmed, go to Payroll Records > Employee List, search and edit the employee

• Navigate to the HR tab > Termination Info and enter:
    - Termination Date
    - Termination Type (e.g., Voluntary, Layoff)
    - Employment End Reason (e.g., Resignation, End of Contract)
    - Termination Notes (optional)
    - Termination Details (e.g., Quit, Discharge)

• Save the record to classify the employee as Terminated

• Confirm the employee is excluded from future pay runs

• Double-check that the termination date matches the last paid day

• Confirm all earnings, deductions, and statutory requirements have been processed accurately