Annual Leave Payout

Redline

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

Acctd4

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

Redline

Thank you for your response :)