How Do I Do Insert And Update In A Single Query.

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SQL-Server-2008R2

Hi,
I want to move few records from a source table to destination table.(Move-insert into destination table delete from source table) in a single statement.I am reading about merge statement but it is not working properly.

BEGIN TRAN;
MERGE Target AS T
USING Source AS S
ON (T.EmployeeID = S.EmployeeID) 
WHEN NOT MATCHED BY TARGET 
THEN INSERT(EmployeeID, EmployeeName) VALUES(S.EmployeeID, S.EmployeeName)
WHEN MATCHED
THEN DELETE;
--OUTPUT $action, Inserted.*, Deleted.*;
ROLLBACK TRAN;

Nothing is inserted to target table.