ETP Genuine Redundancy Payroll Item Selection
Hi,
I have a genuine redundancy payment coming up. I am trying to make sure I select the right tax tracking for the STP.
Should I be creating a new Payroll Item?
Wage - Other - "Name" - Expense Account - Tax Tracking
Which Tax Tracking should I choose for the tax free threshold?
I also have a lump sum annual leave payout that is taxed at 32%, which tax tracking should i choose for this?
Thanks!
Comments
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Hi Kevin
If you type Redundancy in the Ask box on any of the windows within RAH, there's detailed steps on this within the RAH Help files 😊
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Hi Shaz,
Thanks, this did help for the redundancy payment.
I can't seem to find any advice on lump sum annual leave payout. Is there a specific tax tracking i need to indicate for this payment?
Also, this redundancy payment goes over the tax free threshold. Would I process the payment fully with Lump Sum D label and then just add/adjust the additional tax that needs to be withheld? Or would I process the above threshold amount as a normal payment?
Thanks,
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Hi Kevin
Payout of unused annual leave for a redundancy should be under Lump Sum A: https://www.ato.gov.au/Rates/Schedule-7---Tax-table-for-unused-leave-payments-on-termination-of-employment/
Any excess from the Lump Sum D tax-free amount should be shown separately on an ETP:
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Hi,
Yes thanks.
Annual Leave lump sum payout under a genuine redundancy would be Lump Sum A [R]
Tax free threshold amount Lump Sum D
Excess from Lump Sum D that is part of a genuine redundancy and would otherwise qualify for the tax free threshold would be R
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