Pay 13th month and final pay

13th month pay and final pay are both handled as payroll runs with their own run type. You start them the same way as a regular payroll run.

Who can do this: Owner, Admin, HR, Accountant (the Payroll menu)

Run 13th month pay

1. In the sidebar, click Payroll, then New payroll run.
2. Choose the Run type 13th month.
3. Continue as with a regular payroll run: compute, review and approve the payslips.

Approval is final, so review the 13th month payslips carefully before approving.

Run final pay for a separated employee

1. Start offboarding on the employee first. This sets the employee’s last day. (Employee profile → Employment & pay → Offboarding → Start offboarding.)
2. Go to Payroll and click New payroll run.
3. Choose the Run type Final pay and pick the employee.

The final pay review shows prorated basic, prorated 13th month, leave conversion and year-end tax adjustment.

Year-end tax annualization

Year-end tax annualization has no separate screen in Panatag. For a separated employee, the final pay review includes the year-end tax adjustment.