Gratuity payment

Kathyd
Kathyd Member Posts: 131 Reckoner Reckoner
edited November 10 in Reckon Accounts (Desktop)

We are paying an ex employee a gratuity payment (set amount) each pay period for a period of time. I am currently deducting Tax from this but is he entitled to Super as it is not deemed OTE?

Should this payment appear under a different Payroll Item than his pervious Salary (OTE)?

What is the payroll item and how do I open it?

I would appreciated your mentoring.

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,209 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    Hi @Kathyd

    Yes, a Gratuity payment is an ETP & therefore needs to be a separate Payroll Item for correct STP mapping. You are correct in that a Gratuity is not OTE & therefore does not attract Super.

    If you'd like to shoot me an email, I can send you my RA ETP guide, if you need 😊

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