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

Lyndag

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

Kris_Williams

Yes, correct. ……………

Lyndag

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

Kris_Williams

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

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%)

Kris_Williams

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