This article explains how to calculate a departing employee's severance pay, notice pay and unused annual leave pay in the Seniority/Notice Calculation window on Pay and expenses > Employee payroll data. The window fills in details from the employee's records automatically and deducts leave days excluded from severance from the service period. Severance and notice amounts are calculated by the payroll calculation service integrated with Teamso, using the current tax rates and the severance ceiling. You can also transfer the result to the employee's payroll for the exit month. This is done by a user with Payroll Manager Permission.
Teamso does not decide whether the employee is entitled to severance or notice pay. Entitlement depends on the termination reason. If the employee has an exit record, the window shows the termination reason in an information message; check entitlement against that reason yourself.
Before you start
The employee's hire date must be recorded under Personal Information > Seniority. Without it, you enter the hire date in the form manually.
If the employee has been deactivated, the termination date and reason come from the exit record (Deactivating an employee).
The employee's salary must be entered under Personal Information > Wage.
If maternity, military or unpaid leave should be deducted from severance, Exclude from severance pay must be checked in those leave categories (Creating leave rules and leave categories).
If you will transfer the amount to payroll, the payroll period of the exit month must not be closed.
Step by step
Calculating severance and notice pay
Go to Pay and expenses > Employee payroll data in the left menu and click Seniority/Notice Calculation.
In the window, choose the Severance Notice card under New Calculation. The Calculation History table under the cards lists saved calculations.
In the Select Employee step, choose the employee. Only active employees are listed. For a deactivated employee, turn on Show terminated employees; the list shows employees with their exit date. Click Continue.
Check the details that were filled in automatically and change them if needed:
Date Information: the Hire Date comes from the hire date in the seniority record and the Termination Date from the exit record. If there is no exit record, enter the termination date yourself.
Salary Information: Work Type (Monthly Work or Daily Work) and Gross Salary. For daily work, enter the Daily Gross Wage and Monthly Working Days; the monthly gross is the product of the two.
Additional Payments: Bonus and Premium Amount (Gross), Transport Allowance (Daily Gross), Meal Allowance (Daily Gross), Other Payments (Gross) and Cumulative Amount. The bonus and premium amount is the total of bonuses and premiums paid in the last 12 months. Transport and meal allowances come from the daily amounts in the employee's benefits; monthly transport and meal amounts are calculated over 26 days. The Cumulative Amount is the employee's Cumulative Income Tax Base on the Employee Information screen and affects the income tax on notice pay. Other Payments (Gross) starts at 0; enter any other payment that belongs in the total gross wage manually.
Check the Leaves Excluded from Severance section. Approved leaves taken in this date range whose category is marked as excluded from severance are listed one by one. All of them are checked by default; untick a record to keep it in the service days. Leaves tagged Document pending are unchecked by default. Below the list, Total Period, Deducted and Severance Basis are shown in days.
To transfer the amount to the employee's payroll, turn on Include in Payroll.
Click Calculate.
Review the Calculation Results screen and click Save:
Service Period: the service period used for severance (years, months, days). If leave was deducted, the Actual Service Period (notice) and a day summary are shown below it.
Severance Compensation: Gross Severance, Stamp Tax and Premium (Severance), Severance Pay (Net).
Notice Compensation: Notice Period (weeks), Gross Notice Pay, Income Tax and Premium (Notice), Stamp Tax and Premium (Notice), Notice Pay (Net).
Total Compensation (Net): the net total of the two.
Leave days excluded from severance are deducted only from severance pay. The notice period and notice pay are based on the actual service period. The notice period is 2, 4, 6 or 8 weeks depending on the service period.
Calculating unused annual leave pay
On Pay and expenses > Employee payroll data, click Seniority/Notice Calculation.
Choose the Annual Leave card under New Calculation.
Choose the employee and click Continue. For a departed employee, turn on Show terminated employees.
In the Salary and Leave Information section, check the Work Type, Salary (Gross) and Remaining Annual Leave Days. The remaining days come from the annual leave balance in the leave module. The balance is calculated as of the termination date, or as of today if there is no exit record. The date of the balance is shown below the field. The balance can include half days; a negative balance does not turn into a payment and is shown as 0.
To transfer the amount to payroll, turn on Include in Payroll.
Click Calculate.
The result screen shows Salary (Gross), Daily Wage (one thirtieth of the gross salary) and Remaining Days under Calculation Details, and the Annual Leave Payout (Gross) below them. Click Save.
Viewing and deleting saved calculations
When you open the Seniority/Notice Calculation window, the Calculation History table shows the Employee Name, Calculation Date, Calculation Type (e.g. Severance + Notice, Annual leave) and Total Amount columns. For severance and notice calculations, the amount column shows the total of the net compensation amounts; for annual leave it shows the gross leave pay.
To see the details of a calculation, click the eye icon in the Actions column (View Severance/Notice Details or View Leave Details).
To delete a calculation, click the trash icon (Delete). To delete several, check their rows and click Delete in the box at the bottom of the screen.
A saved calculation cannot be edited. To change a value, delete the calculation and calculate again.
Result
Save adds the calculation to the Calculation History. No notification is sent.
If Include in Payroll is on, the amounts are transferred to the employee's payroll. Severance and notice pay go to the month of the Termination Date in the form. Annual leave pay goes to the month of the date in the exit record, or to the month in which you saved the calculation if there is no exit record. The amounts appear in the Severance Pay (Net), Notice Pay (Net) and Annual Leave Payment (Gross) columns of the Personnel Information > Employee Information sub-tab on Pay and expenses > Payroll periods (Opening a payroll period and entering period data). If you change these cells on the period screen, the value you enter applies.
If you saved several calculations included in payroll for the same employee and month, the most recently saved one is used for each item.
If Include in Payroll is off, the calculation is only kept in the history; nothing is reflected in payroll.
Common issues
Symptom: An error saying the payroll of the exit month (for example 09/2026) is closed when saving.
Cause: Include in Payroll is on, but the payroll of the month the amount would go to has been closed.
Fix: Reopen that period first (Reopening a closed payroll period), or turn off Include in Payroll and save the calculation only.
Symptom: After saving, a warning says the termination date is in a different month or that no exit record was found.
Cause: The Termination Date in the form falls in a different month from the employee's exit record, or the employee has no exit record. The compensation goes to the month of the date in the form.
Fix: If the date is wrong, delete the calculation and calculate again with the correct date. Also record the employee's termination (Deactivating an employee).
Symptom: An error saying the saved amount does not match the server calculation when saving.
Cause: The saved amount is compared with the latest calculation made by the server. Calculation results are kept for at most 12 hours; if a long time has passed since the calculation, the amount cannot be verified.
Fix: Go back to the form with Back, click Calculate again, then save.
Symptom: The gross salary field is empty and an information message appears.
Cause: The employee's salary is defined as hourly or weekly, in a foreign currency, or as net with no previous payroll. In these cases the amount is not filled in automatically.
Fix: Enter the Turkish lira equivalent of the gross salary manually.
Symptom: A warning says some bonuses were not added to Bonus and Premium Amount (Gross).
Cause: The field adds bonuses and premiums paid in the last 12 months that are included in payroll and defined in Turkish lira as gross. Those defined in a foreign currency or as net are not added automatically.
Fix: Add their gross Turkish lira equivalent to the field manually.
Symptom: Unpaid leave was not deducted from severance.
Cause: The deduction only considers approved leave records in the leave module, and the leave category must have Exclude from severance pay checked. In companies that enter timesheets on the payroll screen, the window says so in a warning; unpaid leave and missing days entered on the payroll screen are not deducted.
Fix: Turn on the category setting, enter the leaves to be deducted in the leave module and calculate again.
Symptom: A calculation cannot be deleted; a message says it was included in a closed payroll period.
Cause: The calculation was included in payroll and that month's payroll has been closed. In a bulk delete, these calculations are skipped and the others are deleted.
Fix: If you must delete it, reopen the relevant period first.
Symptom: The employee you are looking for is not in the list.
Cause: The employee has been deactivated, or your Payroll Manager Permission covers only some branches. With a branch-limited permission, you can calculate for and see the calculations of employees in those branches only.
Fix: Turn on Show terminated employees; if your permission is branch-limited, ask a payroll user responsible for all branches.