Forum Discussion

pamos's avatar
pamos
Experienced Cover User
4 years ago

redundancy

I have processed a redundency payment classified etp tax free component after reading the ATO for hours in december 2020 and believing this was correct the employee qualified and did not have to pay ...
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi pamos 

     

    Thanks for your post. When creating payroll categories for ETP payments you would generally create 3, ETP Taxable, ETP Tax Free and ETP Tax Withheld. Did you assign the Lump Sum D ATO reporting category to the ETP Tax Free payroll category? These help articles have detailed information on termination payments:

    Creating payroll categories for termination payments 

    Recording a final pay

     

    Please let me know how you go with this.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H's avatar
Tracey_H
Former Staff
4 years ago

Hi pamos 

 

Thanks for your post. When creating payroll categories for ETP payments you would generally create 3, ETP Taxable, ETP Tax Free and ETP Tax Withheld. Did you assign the Lump Sum D ATO reporting category to the ETP Tax Free payroll category? These help articles have detailed information on termination payments:

Creating payroll categories for termination payments 

Recording a final pay

 

Please let me know how you go with this.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • pamos's avatar
    pamos
    Experienced Cover User
    4 years ago

    thanks for your help Tracey H

     

    so to correct the problem would i reverse the original pay 3.12.20

    follow the information and create the payroll catogories correctly and then redo the pay on the date it happened 3.12.20?.

     

    I have un-finalised the empoyees end of year summary already.

    then once i am satisfied it is correct re-finalise eoy pay

    • Tracey_H's avatar
      Tracey_H
      Former Staff
      4 years ago

      Hi pamos 

       

      That's correct, you will need to reverse and reprocess with the correct ETP payroll categories. When you reprocess the termination pay make the payment date a different date, eg the 2nd or 4th dec, to prevent any issues with the ETP.

       

      Then refinalise the employee once the Summary of payments report is correct.

       

      Please let me know if you need further help.

       

      If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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