I have an employee leaving on redundancy. They are getting redundancy pay, unused annual leave pay, unused long service leave pay and 2 weeks of normal pay. I have been asked by this employee if I can do 4 seperate payruns instead of 1 bulk pay for her so as to reduce the amount of tax paid. But it is still required for the same payrun. Just wondering if this is possible?
Hi fithomas
Sorry to see that no one has replied to you yet. PAYG Withholding on termination payments is calculated differently than normal wage payments. To ensure the termination payments are reported and taxed correctly you will need to follow the ATO requirements: Taxation of termination payments
Please let me know if you need further help.
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