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KW20's avatar
KW20
Contributing User
2 years ago

Lump Sum E allocation of back pay over several years

I have a question regarding Lump Sum E allocation

 

According to ATO, backpay of more than 12mths old and are greater than $1200 are to be allocated to lump Sum E and allocated to the appropriate years.  This is the example from the ATO website

 

  • The amount that is greater than 12 months old (14 February 2021 and earlier) totals $1,500 which means it must be reported as Lump sum E because it is greater than the lump sum E threshold of $1,200. The Lump sum E component must be allocated to the appropriate financial year. $600 relates to the 2020–21 financial year and $900 relates to the 2019–20 financial year.

This is reported in STP Phase 2 as follows:

  • KN tasks $1,800
  • Lump sum E 2021 $600
  • Lump sum E 2020 $900.

I have set up in MYOB the Lump sum pay categories for each year and tried to do the pay but am getting and error message.  How do I enter the back pay correctly?

Screenshot 2023-02-03 094520.jpg

Many thanks

3 Replies

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    • KW20's avatar
      KW20
      Contributing User

      No I havent received a reply

      • GeorgieC's avatar
        GeorgieC
        Experienced Partner

        I spoke to my bookkeeping professional association.  Basically they said to process each payment separately therefore is under the $1200 threshold individually and therefor not lump sum E.

         

        Also watch tax & super implications.