Forum Discussion

Kace4321's avatar
Kace4321
Trusted User
2 months ago

Last Pay, ETP payment, Unused Leave

Hi,

I've read the MYOB info on ETP and I'm a bit confused.

I have to do a payrun / final payment for an employee that was made redundant.

It reads like I need to do two last pays, one for the last and then another one for an unscheduled pay to pay out the unused leave.  Can I do everything in one final payrun instead?

I need to pay out:

7 days of work for the final pay run.

ETP taxable payment - 11 weeks non-genuine redundnacy.

Unused LSL/AL using marginal PAYG.

I'm still using the desktop version.

Thanks.

 

  • SupportNoteGuy's avatar
    SupportNoteGuy
    2 months ago

    Hi KACE - sorry for the late reply!

     

    The new final pay feature (for voluntary resignations) means you don't need to manually calculate anything; your MYOB software will do it all. Take a look.

     

    Otherwise, the other reason you might want to record an unused leave payment (and any applicable ETPs) separately is to clearly show the employee the breakdown of what's being paid and the tax that applies to each component.

     

    As we say in the help topic, you might need help from a payroll advisor for any final payments (other than voluntary resignations) that require manual calculations - just to ensure you're paying the right amounts.

     

    Adrian

  • SupportNoteGuy's avatar
    SupportNoteGuy
    MYOB Staff
    2 months ago

    Hi Kace4321 - thanks for the question.

     

    The reason you should do a separate pay for the unused leave is because of the tax. Tax is calculated differently on unused leave than other payments - so doing it in a separate pay allows the tax to be calculated just on that payment.

     

    I hope this clarifies it!

     

    Adrian

  • Kace4321's avatar
    Kace4321
    Trusted User
    2 months ago

    Thanks Adrian,

    It's not a voluntary resignation so I had to do a manual calculation.  

    I've sorted it.

    Regards.

  • KACE's avatar
    KACE
    Experienced Cover User
    2 months ago

    Many thanks Adrian.

     

    I thought the PAYG for unused leave would be a manual calculation that I would need to do. ATO requirements on unused leave is to use the marginal rate calulcatuion steps 1 to 7, therefore I would know the correct PAYG to apply to the unused leave, so couldn't I just enter that amount into the final payslip, rather than doing a final payslip and then an unscheduled payslip for the unused leave?

     

    Regards

    • SupportNoteGuy's avatar
      SupportNoteGuy
      MYOB Staff
      2 months ago

      Hi KACE - sorry for the late reply!

       

      The new final pay feature (for voluntary resignations) means you don't need to manually calculate anything; your MYOB software will do it all. Take a look.

       

      Otherwise, the other reason you might want to record an unused leave payment (and any applicable ETPs) separately is to clearly show the employee the breakdown of what's being paid and the tax that applies to each component.

       

      As we say in the help topic, you might need help from a payroll advisor for any final payments (other than voluntary resignations) that require manual calculations - just to ensure you're paying the right amounts.

       

      Adrian

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