Hi Sue B2,

Thanks for posting in the Community! When you terminate an employee from within the pay run, PAYG amounts are calculated on leave payouts using the rates and guidelines set out by the ATO. 

PAYG is calculated differently for different components, and there are tax free components that may apply. Each part of the total PAYG is displayed in the termination PAYG calculation context panel within the termination pay run, and the calculations for the termination-specific payments are set out.

For more detailed information, you can check on these articles:

Terminating an Employee

How is PAYG Calculated on Leave Payouts?

Feel free to leave a comment below if you need further assistance. Have a great day!