Sorry we misunderstood thinking you were doing termination with ETP. for back pays older than 12 month.
If you are using payroll premier, the lump sum E must be processed using the Sundry Tab during the payrun. if you do not have Sundry tab during the pay. go to preference and tick the box under the general to enable Sundries.
We've just checked the 2018/19 software and 2017/18 software and it is displaying correct for both new and upgraded files in both versions for us.
Can you please go back to the specific pay where the sundry was paid and ensure it looks like the below.
As you can see in our pay here we have 9001 of backpay > 12 months sundry a gross of 520 from the rest of the pay, and therefore its being split out in the pay.
A copy of the payment summary generated can be seen here to show that it has also been split and the amount not included in gross.
By selecting ex tax no this is why it is appearing in gross. It is also using the employees current FY tax tables and not the backpay tax tables Due to the rules around the Lump Sum E payments from previous financial years, using ato back payment tax table, you need to work out the tax yourself via the ATO methods system (Generally method c, please check with a accountant). Please see this ATO document and adjust accordingly based on the number of pay periods the employee gets etc.
So to summarise, generally it will be method c if backpay >= 12 months and then edit the payment being made to the employee to include the additional tax, which will then report in the total PAYG field correctly, and not in the gross field as per the current problem. The NAT 3348 (back payment) table is not in payroll premier
Instructions from the help file
"Calculating tax on back pay
Due to the complexity and number of factors to consider when paying back pay, Payroll Premier does not calculate the tax on back pay. For a pay that includes back pay, you must:
1 Write down the tax amount before back pay is calculated.
2 Manually calculate the tax on the back-pay as per ATO instructions. (PDF above)3 In the Pay Totals section, click on the Tax box, and add the back pay tax to the calculated tax amount, using the Q-Calc window."