Annual Leave Payout
I am setting up a new payroll item for when people resign, voluntary or non-voluntary and receive their final pay with any un-used Annual Leave.
I have called it Annual Leave Payout, this is not including super (so it is different to our normal holiday wages)
I'm confused about the Tax. I thought post 1983 it is now just gross wages and or should I still use the following;
Thank you
Comments
-
Hi Redline
That's correct - The majority of ordinary terminations/resignations all form part of normal Gross Payments (Note: This is broken down further in STP Phase 2 which will be released for RA/RAH in the next few months)
Lump Sum payments are only applicable in specific circumstances, generally for:
- Employees who've been employed with you for a very long time (eg at least 30 years!)
- Back payments over $ 1,200 (accrued 12 months ago or more)
- Redundancy payouts
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
(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!)
2 -
Thank you for your response :)
1