Contents of this article are applicable to the following users
Tier: Growth / Scale
Product: PayrollAny
Platform: Web
Access Level: Owner
When an employee resigns, there are several steps you need to complete in StaffAny to ensure their final payroll is accurate and their offboarding is processed correctly. This guide walks you through each step — from recording the contract end date to running the final payroll and, for foreign employees, submitting IR21 tax clearance.
Prerequisites: PayrollAny must be enabled for your organisation. The resigning employee must already have an active profile in StaffAny.
This guide will cover how to:
Step 1: Add a Contract End Date
The Contract End Date tells StaffAny when the employee's employment ends. Setting it triggers automatic proration of their final-period salary and leave balances.
Go to My Team and select the resigning employee.
Open the Work Info tab and click Edit.
Set the Contract End Date to the employee's last working day.
Click Save. A confirmation dialog will appear summarising the effects:
The employee will be immediately unassigned from any future shifts past the Contract End Date.
Their leaves will be prorated (if proration is enabled for their leave type).
After the Contract End Date passes, the employee will stop accruing leave and be removed from engagement challenges.
The employee's account remains active for 60 days after the Contract End Date. You can deactivate them earlier if needed.
Click Proceed to Save to confirm.
Expected result: The Contract End Date is saved. The employee's leave balance is recalculated and future shifts past the end date are removed.
Note: The Contract End Date must be on or after the employee's Join Date. You can update the Contract End Date at any time before the employee is deactivated. If you need to remove the Contract End Date entirely, edit the Work Info tab and clear the field.
Step 2: Verify Working Days
Before finalising the payrun, confirm that the working days recorded for the employee's last payroll period are correct. An incorrect working-day count will result in an inaccurate prorated salary.
Go to Payroll > Payroll List and open the payrun that covers the employee's last working day.
Click on the employee row to open their payroll details.
Review the Working Days field.
If the working days are incorrect, edit the value to match the actual number of days worked in the period.
Save your changes before proceeding to the next step.
Expected result: The working days reflect the employee's actual days worked in the final period, and the prorated salary is recalculated accordingly.
Tip: Cross-check the working-day count against the employee's attendance records or approved timesheets before finalising the payrun.
Step 3: Add Leave Encashment
If the employee is entitled to encashment of unused leave, add a Leave Encashment pay item to their final payrun. The encashment amount is typically calculated based on the employee's unused leave balance and daily rate.
Go to Payroll > Payroll List and open the final payrun for the employee.
Click on the employee row to open their payroll details.
Under Pay Items, click Add Pay Item.
Select Leave Encashment (Default) from the pay item list.
Enter the encashment amount.
Click Save.
Expected result: The Leave Encashment (Default) pay item appears in the employee's payrun and is included in the final payout.
Note: Leave Encashment (Default) is classified as a gross addition. For Singapore employees, it is treated as Additional Wages and is subject to CPF contributions. Verify the encashment amount against the employee's leave balance before saving. You can view the employee's remaining leave balance in Payroll > Leave Report before adding this pay item.
Step 4: Run an Adhoc Payroll
If the employee's final pay is processed outside the regular payroll cycle — for example, if they are paid before month end — run a separate Adhoc payrun to process their final payment. Skip this step if the employee's last day falls within the regular Whole Month or Mid Month payrun period.
Go to Payroll > Run Payroll.
Click Create Payroll.
Under Period Type, select Adhoc.
Set the Timesheet Start and Timesheet End dates to cover the employee's remaining working days in the final period.
Select the resigning employee from the employee list.
Add any relevant pay items such as Leave Encashment (Default) or IR21 Tax Clearance (Default).
Review the payrun details and click Confirm Payroll to finalise.
Expected result: The Adhoc payrun is created and locked for the employee's final period. The payrun appears in Payroll > Payroll List for review and payment processing.
Note: Use Adhoc payroll only when the final payment is processed separately from the regular monthly payrun. If the employee's last day falls within the normal payroll period, include them in the regular Whole Month or Mid Month payrun instead.
Step 5: Submit IR21 Tax Clearance (Foreigners Only)
For foreign employees — non-Singapore Citizens (non-SC) and non-Permanent Residents (non-PR) — who are ceasing employment in Singapore, employers are legally required to withhold the employee's final salary and file Form IR21 with the Inland Revenue Authority of Singapore (IRAS) for tax clearance before releasing the final payment.
StaffAny provides a Year-to-Date (YTD) Payroll Report to help you gather the income figures required for Form IR21.
Go to Reports > Payroll Reports.
Generate the Year-to-Date Payroll Report for the resigning employee.
Use the YTD income figures from the report to complete Form IR21 on the IRAS myTax Portal.
Once IRAS issues the tax clearance directive, add the IR21 Tax Clearance (Default) pay item to the employee's final payrun to record any withholding or deduction amount required by IRAS.
Release the final payment only after receiving clearance from IRAS.
Expected result: IR21 is filed with IRAS. The final payment is released after IRAS issues the tax clearance notification.
Note: The IR21 Tax Clearance (Default) pay item is a net deduction and is not subject to CPF. Under Singapore law, the employer must notify IRAS at least one month before the employee's last day of employment (or immediately if the employee ceases employment without notice). For step-by-step IR21 filing guidance using the YTD report, see How to Submit IR21 with StaffAny's Year-to-Date Payroll Report.
Important: IR21 applies only to non-Singapore Citizens and non-Permanent Residents ceasing employment in Singapore. Singapore Citizens and PRs are not subject to IR21 tax clearance.
FAQ
Q: Does the employee get deactivated automatically when the Contract End Date passes?
A: No. The employee's account remains active for 60 days after the Contract End Date. You can deactivate them manually at any time before automatic deactivation occurs.
Q: What happens to the employee's leave balance after I set the Contract End Date?
A: If resign date proration is enabled for their leave type, the leave entitlement is prorated up to the Contract End Date. The leave balance of the previous period may also be recalculated. Review the leave balance before finalising the payrun. See Leave Setup: Resign Date Proration for details on how proration is configured.
Q: Do I need to run an Adhoc payrun if the employee's last day is within the regular payroll period?
A: No. If the employee's last day falls within the regular payroll cycle, include them in the standard Whole Month or Mid Month payrun. Adhoc is only needed when the final payment is processed on a different date or outside the regular cycle.
Q: Is IR21 required for all resigning employees?
A: No. IR21 applies only to foreign employees (non-Singapore Citizens and non-Permanent Residents) ceasing employment in Singapore. It is not required for Singapore Citizens or Permanent Residents.
Q: How do I calculate the Leave Encashment amount?
A: The encashment amount is typically the employee's unused leave balance multiplied by their daily rate. You can find the unused leave balance in Payroll > Leave Report. Confirm the formula with your payroll or HR policy before entering the amount.
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