Setting up Qualified Earnings for payment in lieu of notice

Question

The ATO lists payment in lieu of notice as qualified earnings however this is not an option in the payroll setup that I have for this item. It is currently setup as ILoN (Non-Red ETP) post June 1983 untaxed element(low rate threshold) (O).

Do I have this item set up incorrectly?

Stephanie Gonzalez · Answer

Thanks for your help Rav.

Rav · Answer

Hi @Stephanie Gonzalez

Check out the info in this announcement regarding QE for payment in lieu items using the Post June 1983 Untaxed Element (Low Rate Threshold) (O) type in Reckon Accounts Desktop 2026 v35.

Fix for Payment in Lieu of Notice - Qualifying Earnings in Reckon Accounts Desktop 2026 v35