Final pay - including payment of 2 weeks in lieu of notice period

grace6

Hi MYOB Team,

I have a question regarding Payment in Lieu of Notice.

For a contractual payment in lieu of notice on dismissal due to poor performance, should the MYOB wage category be reported under ETP Taxable Component (Type O), or should it be reported as Gross Payments under STP?

Doreen_P

Hi @grace6,

 

Great question! Checking the ATO website, payment in lieu of notice is included as an ETP. You can find more info via this link. That said, it’s still a really good idea to check this with your accountant too, just to make sure the treatment is right for your specific situation and stays nice and compliant.

 

Cheers,

Doreen