Rehire a terminated employee

Tip: You must open a pay period to use this feature / functionality. Click the Pay Period menu and click the Enter button for the pay period you want to work with. The Payroll and Process menus become available.

This procedure describes how to rehire an employee who is still in the Powerpay system but has the status "Terminated."

Rehiring an employee is similar to hiring an employee for the first time. When you rehire an employee, have the employee fill out all the forms for a new employee. The employee may have changed some information that affects the payroll, such as:

  • New bank account
  • Change in benefits qualification
  • Different tax status
  • Name change
  • New home address

Video

Rehire an employee in the current pay period

Follow the steps in this video to rehire and employee in the pay period

Rehire an Employee Where the Return Date is in a Prior Pay Period

Follow the steps to rehire and employee with a return date in a prior pay period

Tasks

Gather the following information to ensure that the payroll is set up accurately for the employee:

  • Employee Hire form - Use this form to gather the information you need to enter an employee in Powerpay. You must have Adobe Reader installed to view and print it.

  • Void cheque (for direct deposits) - If the employee wants to split pay between more than one direct deposit account, have the employee supply a dollar value and a void cheque (or bank letter confirming account information) for each deposit account.

  • TD1 Tax form - As a best practice, every employee should complete this form, even if the employee may claim only the basic tax exemption. What an employee fills out on the TD1 can be taken as true. Employees are responsible for providing you with correct information about their tax status.

  • Company deductions list - As a best practice, obtain the employee's written consent to having these deductions taken. This is a helpful to reduce errors.

  • Other forms for various benefits that need to be filled out and signed by the employee.

If you rehire an employee before all of the preceding information is complete, you MUST have at least a minimum information:

  • Last name
  • First name
  • Pay type
  • Standard hours per pay
  • Province of employment
  • Tax status (Federal and Provincial)
  • CPP/QPP status
  • EI category
  • Department (defaults to Dept 100 unless the default value is changed for your payroll)
  • Vacation plan
  • Additional accumulator plan (if applicable)
  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.
  2. Navigate to the Status Change / ROE page.Closed From the Payroll menu, select ROE / Employee Status Change > Status Change / ROE.

  3. Select the employee from the Employee List.

    • If the name is not visible, ensure the Terminated checkbox is selected in the Employee List.
    • If the name is still not visible, the employee was terminated in a previous year and has since been removed. Refer to Hiring a new employee.

  4. Complete the fields in the Status Change Options section to change the status of the employee to active. For more information, see Status Change Options.

  5. Click Next.

  6. Enter the appropriate date in the ROE First Day Worked field.

    Was an ROE issued when the employee status changed?

    • Yes. Enter the first day of work after being reactivated in the ROE First Day Worked field. The new ROE history will commence from this date.

    • No. Locate the date displaying in the First Day Worked field on the Insurable Earnings Adjustments page.Closed From the Payroll menu, select ROE / Employee Status Change > Insurable Earnings Adjustments. Enter this date in the ROE First Day Worked field. Insurable wages earned after the employee's return date will add to any ROE history on file.

    Tip: To confirm if an ROE was previously issued go to the Insurable Earnings Adjustments page.Closed From the Payroll menu, select ROE / Employee Status Change > Insurable Earnings Adjustments. In the Action to be taken field, select View Employee EI History. Review the ROE Previously Issued field. If the field is blank an ROE was not issued.

  7. Verify and update information on the Employee Profile page.Closed From the Payroll menu, select Hire/Profile > Employee Profile.

  8. Verify and update direct deposit information on the Direct Deposit page.Closed From the Payroll menu, select Hire/Profile > Direct Deposit.
  9. Verify and update information on the Deductions & Contributions page.Closed From the Payroll menu, select Regular Payment > Deductions & Contributions.
  10. Verify and update information on the Permanent Rates, Factors, Earnings page.Closed From the Payroll menu, select Regular Payment > Permanent Rates, Factors, Earnings.

Although the rehired employee's information is still in Powerpay, it is a good idea to verify all information and make necessary changes.