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emcaravans's avatar
emcaravans
Trusted User
3 years ago
Solved

ETP Payment

I have an employee was was dismissed on Friday. I have processed their final normal pay and also processed their unused annual leave (created payroll categories - transferred entitlement hours from annual leave to unused anual leave on a $0 payrun). Processed the unused annual leave pay with unused leave loading using the total entitlement hours in unused annual leave and used the ATO method to calculate the withholding amount.

 

The employee is also to be paid an in-lieu of notice pay. We have less than 15 employees, is this classed as an ETP?

I have created the wage and deduction categories for this pay using the ATO calulations for tax to withhold.

I know I have to select the ETP Benefit type etc when processing the pay.

 

Also, does the ETP show up in the YTD figure reports? If it doesn't will this make it confusing at the EOFY?

 

And does the termination date in MYOB and that is reported through STP have to be the same date as the final pay?

  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi emcaravans 

     

    Thanks for your post. You'll need to check with the ATO on what payments are classified as ETPs. This link to the ATO website has detailed information: Employment Termination Payments

     

    ETPs are reported separately in the STP reports according to the ATO reporting category assigned to the ETP payroll categories.

     

    The termination date should be the date the last day of employment.

     

    When it comes to paying out unused leave you don't need to transfer the accrual balance from the leave entitlement to the unused leave category. Instead you would link the Unused leave category to the wage leave category which will reduce the entitlement balance when you pay the unused leave. To do this go to Payroll Categories>>Entitlements tab>>open the leave accrual>>select the Unused leave category in Linked Wages Category:

     

     

    This help article has detailed information you may find useful: Processing a final pay

     

    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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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi emcaravans 

     

    Thanks for your post. You'll need to check with the ATO on what payments are classified as ETPs. This link to the ATO website has detailed information: Employment Termination Payments

     

    ETPs are reported separately in the STP reports according to the ATO reporting category assigned to the ETP payroll categories.

     

    The termination date should be the date the last day of employment.

     

    When it comes to paying out unused leave you don't need to transfer the accrual balance from the leave entitlement to the unused leave category. Instead you would link the Unused leave category to the wage leave category which will reduce the entitlement balance when you pay the unused leave. To do this go to Payroll Categories>>Entitlements tab>>open the leave accrual>>select the Unused leave category in Linked Wages Category:

     

     

    This help article has detailed information you may find useful: Processing a final pay

     

    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.