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How to rehire an employee that has been terminated

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Summary

How to reactivate a terminated employee in Sage 50 Accounting.

Description

Removing the termination date of an existing employee record will affect the accuracy of tax reporting. Modify the name of the old record by adding an 'X' at the beginning, and create a new employee record.

Resolution

  1. Keep the old employee record inactive. Put an X next to the employee name box to indicate it as the old record.
  2. Create a new employee record.
  3. Enter the new payroll using the new employee record.
    • If you terminated and rehired the employee in the same year, enter year to date amounts on the first paycheque.
    • At the end of the year, generate T4s for both the inactive and the current employee record to get the accurate deduction amounts.

You’ll be able to generate the second set of ROEs and T4s accurately using the new employee record.

 NOTE: Reusing an old employee record by removing the termination date and entering a new hire date can cause incorrect T4, ROE, and PIER reports. 

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