ETP Genuine Redundancy Payroll Item Selection

Kevin_8669814
Kevin_8669814 Member Posts: 15 Reckoner Reckoner

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

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,754 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited May 2022

    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 / Hosted ! ***

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

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kevin_8669814
    Kevin_8669814 Member Posts: 15 Reckoner Reckoner

    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
    Acctd4 Accredited Partner Posts: 3,754 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    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 / Hosted ! ***

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

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kevin_8669814
    Kevin_8669814 Member Posts: 15 Reckoner Reckoner

    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