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debbieg's avatar
debbieg
Experienced Cover User
9 days ago
Solved

Deceased employee payment to beneficiary

Death of an employee, current. Have read ATO info, and had accountants assistance.   However still unclear to me how to process via Myob or not process via Myob? The total amount owing to the deceas...
  • Doreen_P's avatar
    Doreen_P
    9 days ago

    Hi debbieg,

     

    I’m sorry to hear about your employee’s passing. For the situation you’re dealing with, outstanding wages and leave owed at the time of death are usually paid directly to the beneficiary or estate and aren’t processed through payroll or STP because they’re not treated as an ETP. A death‑benefit ETP only applies if specific entitlements are involved, and if none of those apply, you can pay the amount outside MYOB and give the statement you’ve prepared. If there's an ETP component, only that part goes through STP using the correct death codes. Here's a link from ATO about PAYG withholding for deceased employees. If you need any more help sorting this out, you’re welcome to reach out to our team. You can contact them on Live Chat via our virtual assistant, MOCA, or by submitting a support case via My Account.

     

    Cheers,

    Doreen

Doreen_P's avatar
Doreen_P
MYOB Moderator
9 days ago

Hi debbieg,

 

I’m sorry to hear about your employee’s passing. For the situation you’re dealing with, outstanding wages and leave owed at the time of death are usually paid directly to the beneficiary or estate and aren’t processed through payroll or STP because they’re not treated as an ETP. A death‑benefit ETP only applies if specific entitlements are involved, and if none of those apply, you can pay the amount outside MYOB and give the statement you’ve prepared. If there's an ETP component, only that part goes through STP using the correct death codes. Here's a link from ATO about PAYG withholding for deceased employees. If you need any more help sorting this out, you’re welcome to reach out to our team. You can contact them on Live Chat via our virtual assistant, MOCA, or by submitting a support case via My Account.

 

Cheers,

Doreen

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