How do you enter a payment decide by fairwork after a dismissal

Lyndag
Lyndag Member Posts: 9

We have had an employee got to fairwork for a dispute in a dismissal pay and they have given us a gross amount to pay less the tax. Do you enter this as a unscheduled payroll payment

Answers

  • Kris_Williams
    Kris_Williams Member Posts: 3,197 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Yes, correct. ……………

  • Lyndag
    Lyndag Member Posts: 9

    Thanks Kris and do you know which tax table I use?

  • Kris_Williams
    Kris_Williams Member Posts: 3,197 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    In the employee’s details you should have selected his tax situation - tax free threshold claimed or not. Or if they have given you the tax amount you can just enter it in

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,169 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi @Lyndag

    You need to set up a new Payroll Item for this as it needs to be reported as an Employment Termination Payment (ETP)

    It will need to be mapped to "Post June 1983 Untaxed Element (R)" (or the " ... Low Rate Threshold" version if employee is above preservation age)

    It will be a code R & you will need to enter the tax amount manually as - depending on the employee's age - it should be taxed at either 17% or 32% (assuming it doesn't put them over the ETP income cap threshold, in which case it would be taxed at 47%)

    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

    [email protected]

    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!)
  • Kris_Williams
    Kris_Williams Member Posts: 3,197 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I’m sorry Lyndag I should have left it to Shaz to answer, she’s the guru