Key points of this article 🎯
Exit calculations are now generated automatically and available immediately ✅
An easier way of calculating: determines what employees owe or should receive when departing 👋
No more 5-day waiting period 🗓️
The context 🪐
An exit calculation is a financial settlement of all benefits and budgets within the Payflip system when an employee departs. The main goal is to ensure the employer recovers all money spent on benefits for the departing employee.
Our previous exit calculations required manual intervention which could sometimes create bottlenecks during the offboarding process. We strive to offer real time exit calculations with full transparency which are clear for employers and employees.
How does it work? 🔄
Whenever we do an exit calculation, 3 chronological steps are followed.
1️⃣ Benefits calculation
TOTAL COST - ALREADY PAID = STILL TO BE PAID
We calculate remaining open amounts for each benefit choice. We use the exit date to determine the total cost and compare this amount with the already paid budget amounts. This results in a total 'still to be paid' amount.
2️⃣ Budget settlement (EYP - Bonus - MB)
REMAINING BUDGET BALANCES - RESULT STEP 1 = DEBT/PAYOUT
We compare the results in step 1 with the remaining budget balances (EYP & Bonus). This results in a
Negative amount = Employee owes money → Deducted from pro-rata EYP or net departure holiday pay
Positive amount = Employee receives payout → Paid as EYP/bonus or under pillar 3 (MB)
3️⃣ Special considerations
We will also review any special situations e.g., reverse mechanism for gross reimbursements when no pro-rata EYP is available.
Want to know more about the calculations and formulas for the different benefits? Read all about it on this page.
What's changing in your flex plan? 🎯
When deactivating an employee you'll see the button 'view exit calculation'.
You'll get a full overview of the total flex plan settlement. Watch this video to be guided through a complete exit calculation 👇
Communication to your payroll provider 📫
Make sure to share the exit calculation results with your payroll provider. They'll need these numbers to correctly process the employee's final payroll and complete their offboarding.
Need a template mail to send to your payroll provider? We got you 📫
Need help? 💡
Our support team is here to guide you through these changes. Reach out through the Payflip chat anytime, we're always happy to help! 🔵