Forum Discussion

cramptons's avatar
cramptons
Experienced Cover User
3 months ago

Death of Employee

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.

3 Replies

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator

    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

    • cramptons's avatar
      cramptons
      Experienced Cover User

      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??

    • cramptons's avatar
      cramptons
      Experienced Cover User

      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???