Year-End & Severance

Four screens in the Payroll workspace deal with things that happen at year-end or when someone leaves: generating statutory year-end paperwork, tracking what unused leave is worth, recording prior payroll history when you move onto ianaiERP partway through a year, and settling severance.

Year-End

The Year-End tab generates the statutory documents your country expects at year-end, one card per document type. Pick the country and the tax year at the top, and the cards change with the country:

United States: W-2 (one per employee), W-3 (a single aggregate), and 1099-NEC (one per contractor vendor).
Korea: Withholding Tax Receipt and Year-End Tax Settlement (per employee), Payment Statement (an aggregate), and Freelancer Withholding Receipt and Freelancer Payment Statement for contractors.

Each card shows when it was last generated and gives you Generate (or Regenerate once one exists), Download PDF, Distribute — which emails the document to the employee or vendor, with Distribute Selected for several rows at once — and Mark Filed, which records an optional filing confirmation number. Regenerating doesn't replace an earlier version: each generation is listed under the card, newest first.

Every document is built from the year's approved payroll, so it's only as complete as the payslips behind it. Per-employee documents are generated one employee at a time. An aggregate document is built from everyone's per-employee figures, so if one fails, generate the per-employee documents for that year first.

Employer returns such as Form 941 and Form 940 aren't produced here — they're prepared on the Employer Returns tab, covered in Payroll Tax & Compliance.

Opening YTD

Opening YTD exists for one situation: you start running payroll in ianaiERP partway through a tax year, or an employee joins mid-year, and their prior year-to-date wages and withholding need to be on record so that anything capped over the year (like a wage-base ceiling) keeps calculating correctly for the rest of the year.

Each snapshot covers one employee for one tax year, with an effective date, the date the prior source's figures run through, one or more balance lines, and a required evidence attachment. You also record where the balance came from — a new employee starting at zero, a year-start zero attestation, a conversion from a prior provider, a transfer from a predecessor employer, a common paymaster arrangement, or an agent/PEO arrangement.

A snapshot is a draft until approved, and the person who created it can't approve it. Approval is also refused when it would conflict with payroll already on record:

For an employee recorded as having no prior balance, approval is refused once any payroll or adjustment exists for them in that tax year.
For any other source, approval is refused if payroll exists on or after the snapshot's effective date.

Correct the effective date, or sort out the conflicting payroll first. Once approved, the snapshot is locked, it replaces any earlier one, and the employee's year-to-date figures are rebuilt from it immediately. A later correction is a new snapshot, not an edit.

Leave Liability

The Leave Liability tab shows what the company owes for unused paid leave, for a Year you pick at the top. Next to the Unused Leave Liability title, a badge totals the amount owed across everyone — red when anything is owed, green when nothing is.

Each row is one employee: days Entitled, Used, and Unused, their Daily wage, and the amount Owed. A row that reads No pay record means the amount can't be worked out yet — not that nothing is owed. Leave in another currency is shown in that currency and left out of the total.

For Korean employees, the Basis column tracks leave-use promotion under Korean labor law: unused leave becomes payable unless the employer completed the promotion process by serving both statutory notices — asking the employee to schedule their remaining leave, then giving them the dates to take it. A green Promotion complete badge means both notices were served; an orange Employer liable badge means they weren't, and serving only the first notice isn't enough. On an Employer liable row, an HR admin records each notice as it's served with Record 1st notice and Record 2nd notice; each asks you to confirm, then records the notice as served today. The screen surfaces this exposure before year-end rather than after — whether a completed process relieves the obligation in a particular case is still a legal question for you and your advisers. For employees in other countries, the notices don't apply and unused days are simply payable.

The unused-leave amount can also be included in an employee's final payout — see Final payout below.

Severance

The Severance tab is a running ledger of accumulated severance per employee, maintained by the system: the plan type (defined benefit, defined contribution, both, or none), years of service, the total accrued, anything already paid out early, and the resulting accumulated balance — the total less interim payments. Two actions are available from each employee's row:

Issue Interim Settlement — records an early partial payout for a qualifying statutory reason: a first home purchase, a housing rent or jeonse deposit, six months or more of medical care for the employee or a dependent, bankruptcy, personal rehabilitation, long-term care, natural disaster damage, or other. The amount must be greater than zero, and it reduces the balance available for the final payout.
Transfer to IRP — moves the remaining accumulated balance into the employee's retirement pension account. It's available only once the employee's release date has passed and no final payout has been recorded, and the employee needs a retirement plan set on their record. The review shows the arithmetic — total accumulated, interim already paid, and the net to transfer — before you confirm.

Final payout

When an employee leaves, Compute Final Payout on the Pay History tab of their employee record brings the pieces together: their severance (net of interim settlements), the value of their unused leave, and their remaining regular wages, deductions, and taxes. You choose what to include and set the pay date, and a Draft payslip is created in an off-cycle pay period for payroll to review — nothing is approved, posted, or paid at that step. See Payroll Overview for how off-cycle runs work.