Forum Discussion

cramptons's avatar
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
    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.


    • cramptons's avatar
      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???

    • cramptons's avatar
      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??