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cathyl's avatar
cathyl
Cover User
2 years ago

Death of Employee

We sadly lost a young employee and I need to process entitlements owing (annual leave, loading & long service leave) I understand that I am not to withhold tax for starters.  Hopefully, someone here knows exactly what the procedure are.. the DO's & DON'T's and if there is an MYOB category to report this final pay

 

I have had mixed information coming in.  There were previous responses on MYOB from 2018 saying just open new ledgers and transfer the money that way and drawer a cheque, then there have been others saying I need to enter the dependent into MYOB as an employee and pay the benefits to that person as an ETP Death benefit - Not Reportable.

 

Any help would be appreciated.

 

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  • ChrisMYOB's avatar
    ChrisMYOB
    Former Staff
    2 years ago

    Hello cathyl 

     

    An ETP is a lump sum payment you make to an employee when they stop working for you. For detailed information about this type of payment, visit the ATO website. An ETP may include certain payments after the death of an employee.

    I would suggest checking with your financial advisor on the best way to process this, but you should be able to change the bank details to that of where you are paying out and then not need to add in an employee.

     

    I have linked our Help Article on processing termination payments, which will cover all payroll categories you will need to make.