ETP Genuine Redundancy Payroll Item Selection

KevinKevin Member Posts: 11

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!

Comments

  • Acctd4Acctd4 Accredited Partner Posts: 1,727 ✭✭✭✭
    edited May 10

    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 😊


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)

    * Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services Ballajura, WA

    0422 886 003

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    (NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)

  • KevinKevin Member Posts: 11

    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,

  • Acctd4Acctd4 Accredited Partner Posts: 1,727 ✭✭✭✭

    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/

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)

    * Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services Ballajura, WA

    0422 886 003

    [email protected]

    https://accounted4.com.au

    (NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)

  • KevinKevin Member Posts: 11

    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

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