Full and Final Overview

Full and Final Overview

Quick Access : Payroll Manager > Full & Final
Accessible to : Payroll Manager

Processing the full and final (FnF) for an employee who has resigned / retired or has left the service for any other reason is managed through this page. A list of all the employees for whom FnF is pending is visible on this page. Only when the separation request of employee is approved the record is visible here.

Full and Final Status

  1. Pending – is the initial status but if any Payroll is pending then the row is in pink color and no action can be done. Once all the pending full month payroll are completed then the record can be taken for processing
  2. Initiated – some data has been updated and FnF saved but Provisional FnF has not been generated
  3. In Process – is when the Provisional FnF statement has been created. In Process FnF can be reset which will bring it back to Draft status or it can be taken forward to the next status
  4. Under Approval - if the full and final approval process is enabled and the record is submitted for approval then it will show this status
  5. Finalized – FnF has been finalized
  6. Paid – Payment details have been updated
  7. Closed - Separation record has been closed
Full and final up to Finalized status can be reverted or deleted  but once you have updated them to Paid then you can cancel them only using the Cancelling confirmed payroll and full and final process.

Types of Full and Final

There can be two different types of full and final
1. Regular – when the employee has not been paid for some days and the FnF has to be done considering the partial salary for the last month worked by the employee
2. Recovery – when the employee has already been paid fully till the last working day or has been paid beyond last working day. In such a case a recovery is to be done

Determining Full and Final and Month

The period for full and final will depend on two things
1. What is the approved last working day of the employee
2. What was the month of the last payroll run for the employee

Different scenarios which impact the way the period of Full and Final is determined are explained below.

1. If "Include separated employees in regular payroll" = No

a) If an employee resigns with the last working day as the last day of the month, for e.g. – 30/Jun then the normal payroll for June will not have to be run. Full and Final which has to be done will include the payroll for June also. This will be considered as June FnF.
b) If an employee resigns with last working day as 20/Jun and his payroll till May has been run then the FnF for June will be created as pending.
c) If an employee resigns with last working day as 30/Jun and his payroll for June has already been run and confirmed then the FnF will be considered as July payroll.
d) If an employee resigns with last working day as any day in Mar and his payroll for March has already been run and confirmed then the FnF would be treated like April payroll run. This scenario will lead to all statutory filings for the next financial year being created. The only way to avoid this is to reset the March payroll and run it again so that this employee is excluded from the regular payroll and is handled as a March FnF.

2. If "Include separated employees in regular payroll" = Yes

a) If an employee resigns with the last working day as the last day of the month, for e.g. – 30/Jun employee would be included in June payroll. Full and Final which has to be done will be a recovery FnF and will be considered as July payroll.
b) If an employee resigns with last working day as 20/Jun and his payroll till May has been run then payroll for June will be pending and till it is run full and final cannot be done.
c) If an employee resigns with last working day as 30/Jun and his payroll for June has already been run and confirmed then the FnF will be considered as July payroll.
d) If an employee resigns with last working day as any day in March and his payroll for March has already been run and confirmed then the FnF would be treated like April payroll run. This scenario will lead to all statutory filings for the next financial year being created for all employees whose last working day is in March. To avoid this you can disable the parameter before running March payroll.

Payroll Manager's Role

Payroll Manager has to process the FnF based on the inputs given during the separation process and also based on the calculations done by the system. The level of flexibility given to Payroll Manager can be controlled from Payroll Setup. There is a parameter "Allow Payroll Manager to override recovery/payout recommendations during Full and Final" if this is selected as Yes then Payroll Manager will be able to override the recommendations given during Separation approval and can also change the amounts recommended by the system. 

Notes
Note - Full and Final is processed as payroll and if employee's last working day was for example 30 June and if June payroll was already processed for the employee then Full and Final will be run as July payroll. Since number of days which are used for Leave Without Pay deductions, Notice Period recovery, Overtime payouts are linked to total number of days in the month, the system will consider 30 days as total number of days even though the Statutory deductions like TDS, PF, ESI will come in July outputs. 

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