ETP Genuine Redundancy Payroll Item Selection

Kevin

Hi,

I have a genuine redundancy payment coming up. I am trying to make sure I select the right tax tracking for the STP.

Should I be creating a new Payroll Item?

Wage - Other - "Name" - Expense Account - Tax Tracking

Which Tax Tracking should I choose for the tax free threshold?

I also have a lump sum annual leave payout that is taxed at 32%, which tax tracking should i choose for this?

Thanks!

Acctd4

Hi Kevin

If you type Redundancy in the Ask box on any of the windows within RAH, there's detailed steps on this within the RAH Help files 😊

Kevin

Hi Shaz,

Thanks, this did help for the redundancy payment.

I can't seem to find any advice on lump sum annual leave payout. Is there a specific tax tracking i need to indicate for this payment?

Also, this redundancy payment goes over the tax free threshold. Would I process the payment fully with Lump Sum D label and then just add/adjust the additional tax that needs to be withheld? Or would I process the above threshold amount as a normal payment?

Thanks,

Acctd4

Hi Kevin

Payout of unused annual leave for a redundancy should be under Lump Sum A: https://www.ato.gov.au/Rates/Schedule-7---Tax-table-for-unused-leave-payments-on-termination-of-employment/

Any excess from the Lump Sum D tax-free amount should be shown separately on an ETP:

https://www.ato.gov.au/Individuals/Jobs-and-employment-types/Working-as-an-employee/Leaving-your-job/Employment-termination-payments/

Kevin

Hi,

Yes thanks.

Annual Leave lump sum payout under a genuine redundancy would be Lump Sum A [R]

Tax free threshold amount Lump Sum D

Excess from Lump Sum D that is part of a genuine redundancy and would otherwise qualify for the tax free threshold would be R