Processing an Employment Termination Payment (ETP) - part "in lieu of notice"

Question

Hello,Hoping i can get a little advice on a very complex topic in Australia.&nbsp;In short - I have created all of the ETP Payroll Categories in MYOB AccountsRight.I understand our employer obligations regarding paying out accrued entitlements at termination of employment.&nbsp;Reason - we have sold our small business (less that 15 employees).Our staff member is not transferring with the business - which he's happy about.&nbsp;We will have to give our staff member 5 weeks notice for Termination of Employment nominating his final day/date of work.&nbsp;There is a possibility that he will work some of the 5 weeks notice period and the balance to be paid in lieu of notice (ETP).&nbsp;How do I process these 5 weeks in payroll? I'm not sure of the combination of weeks as yet.For example - Would it be part Base Hourly (1 week) &amp; the balance (4 weeks) ETP?&nbsp;Any help would be greatly appreciated.&nbsp;ThanksRobyn

princess_r · Answer

Hi robyno8888,&nbsp;Thank you for explaining your situation, you've done an awesome job setting up the ETP Payroll Categories and getting on top of your obligations for paying out entitlements. &nbsp;For your question, you can absolutely process both the worked notice period and remaining balance (in lieu of notice). For instance, your staff member works 1 week and the remaining 4 weeks are to be paid out, you'd handle the worked week as Base Hourly pay and treat the unused weeks as an ETP. Feel free to check out these guides for more detailed steps on processing termination payments:Processing a final payProcessing an employment termination payment (ETP)Termination payments can be pretty tricky, though, so I’d totally recommend having a quick chat with your accountant just to be sure everything’s spot-on.&nbsp;Cheers,Princess

robyno8888 · Answer

Hi Princess,&nbsp;Thank you for the quick response and clear explanation.I will definitely check in with our accountant.&nbsp;Our staff member is paid weekly.Another example question - if he works 2 weeks of his notice &amp; is paid 3 weeks by ETP.&nbsp;Would I jusy pay him his normal Base Hourly weekly pay then process the 3 weeks ETP when he finishes?&nbsp;ThanksRobyn&nbsp;

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Processing an Employment Termination Payment (ETP) - part "in lieu of notice"

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