Unfortunatly, one of our employees died suddenly.
He is owed a sizable amount of Annual Leave and LSL.
I believe I cannot pay this out until after probate on his estate, is this correct?
Also, are the payments made to his estate tax free?
And also, I cannot terminate his employment without wiping all of his entitlements??
Any help on this would be most appreciated.
Hi cramptons,
Thanks for your post, and I'm sorry to hear that. Please take a look at the ATO website for comprehensive information on the issue at hand, specifically regarding the Death of an Employee. It's a valuable resource that can provide assistance in this situation. Additionally, I recommend reading this help article for detailed guidance on managing the final pay for the employee. Processing a final pay.
Feel free to post again, we're happy to help!
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
Regards,
Earl
What I would like to know, is when I pay the termination payment to the trustee of the deceased employee, what are the MYOB categories that I put these payment against??
Also, when I set up the Payment Classification -''Death Benefit ETP', as PAYG exempt and 'not reportable', do I overide the Employees Wage Expense Account? and if so - to what account do I put it? I am assuming I have to do this, as the payment is not being paid to the employee, but to the Trustee of his estate???
Did you get a solution to this query?
Thanks
Hi HoneySandra,
I can see that you would like to know on how you can process a final pay to a deceased employee. First. I'm so sorry to hear that. You may check this helpful article as it has detailed information on how you may process it.
Feel free to write a post if you need further assistance.
Cheers,
Jem
I actually figured it our the best I could, with no help from MYOB, as usual.
Hi cramptons​ hoping you can help as I am in this situation what did you end up doing?
Hi, What did you want to know??
did you end up doing a payment of leave entitlements at $0 to remove the employee and entitlements from the system? as I believe it it cant go through the payroll system and no tax or super
I paid out all the entitlements owing (no tax or super) to the solicitor handling his estate.
I set up a payroll category 'Death Benefit ETP' - and the ATO setting 'not reportable'
I changed the banking details for payment to the solicitor's banking details.
After all that, I terminated him due to deceased. (sad)
I am not sure if this was 100% correct, but it seemed to all be ok at the EOPY !!
