STP code for an ETP payment to an employee
Good morning,
We have an employee who is to receive 10 weeks of standard pay as part of a termination payout that has been negotiated with the employer. What STP code should I use to classify this payment?
Denise
Answers
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Hi Denise
This would be Post June 1983 Untaxed Element (O) π
(NOTE: This payment would be considered an ex gratia, gift or golden handshake so is not classed as OTE & therefore no Super - or Leave accruals - would apply)
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
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Untaxed element! Does that mean there is no tax deducted from the pay?
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@Kris_Williams No, the terminology is a little misleading - It's still classed as a "Taxable Component" but - up to the relevant ETP threshold - is taxed at either 17% or 32%, depending on the employee's age π¬
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(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!)
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thanks Shaz I may have to enter one of these in the coming weeks
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Many thanks for your advice Shaz. I have processed the ETP and it seemed to work out OK.
Deniseπ
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Great to hear @Denise Durant ! ππ»ππ»
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! *** Bookkeeping & 1-on-1 customised software Training/Troubleshooting ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(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!)
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