Death of an employee, current. Have read ATO info, and had accountants assistance.
However still unclear to me how to process via Myob or not process via Myob? The total amount owing to the deceased employee is less that $260k (ETP Cap 2025-26) so am I correct in assuming this is not an ETP, but an untaxable amount to be paid?? This will be paid directly to the beneficiary.
One legal article notes "Outstanding wages, allowances, etc payable on the death of an employee are not reported via Payroll, so not reported via STP". Is this correct? Also notes that a prepared statement showing the break-up for the amounts payable may be made available to the recipient- estate, executor, or trustee or beneficiary. This statement is completed & ready to give to the beneficiary.
However a separate Myob article indicates that it is processed via STP, using D for death for employment basis & DBXXXX for tax treatment code. Says set up the beneficiary as a new payee in payroll, using TFN,DOB. However the beneficiary is already on our payroll as is the husband of the deceased.
So I am confused as to what is the correct legal way to process. I've been trying to get ATO on the phone with no luck.
I very much need clarification of this very sad question. Thanks Debbie G
