Forum Discussion

Feziona1's avatar
Feziona1
Experienced User
5 years ago

Termination and Redundancy Pay

Hi There    I am having to pay an employee a genuine redundancy.    I have to pay the employee 4 weeks notice, 2 weeks time in leiu of notice and some unused leave.   Firstly I am wondering if ...
Feziona1's avatar
Feziona1
Experienced User

Thanks Tracey

 

This is my first redudancy and it is very confusing.

 

This information was somewhat helpful as it helped fill in some of the missing links.

 

The term pay I am doing is not an ETP as per the ATO classification and it is a genuine redundancy.

 

I haven't been able to locate any areas on the ato website regarding classification of genuine redundancies.

 

Also I was wondering if payment in leui of notice if it is not worked is part of the redundancy pay and how it is taxed. Also finding it hard to obtain clarity on these questions.

 

Any reference points I can use for the above?

 

Thank you

Tracey_H's avatar
Tracey_H
Former Staff
5 years ago

Hi Feziona1 

 

Unfortunately, I can't give you specific advice on how to classify and tax those termination payments. The first link I gave above, Payments that are ETPs, has links to information on genuine redundancies. If you need more information you will need to contact the ATO, which I understand is very difficult at the moment. Your accountant/tax advisor may also be able to help.

 

If you need help recording the termination payment in your software, please don't hesitate to ask as I am happy to help.

Looking for something else?

Search the Community Forum for answers or find your topic and get the conversation started!

Community home

Dig into MYOB Academy for free courses, learning paths and live events to help build your business with MYOB.