Long Service Leave

[Delemar]

I have resigned from my employment and have taken all accrued leave and have just started Long Service Leave. I am retiring.  My employer has paid me in a lump sum, which I think is what is required, but I have paid an enormous amount of tax and they have not continued my salary sacrifice.  Are they permitted to subtract the amount that I would have ordinarily sacrificed and pay that to me and then put the remainder into my superannuation?  I have the uncashed cheque.

[Tracey_H]

Hi @Delemar 

Thanks for your post. We can't tell you how your employer can pay your termination payment, you'll need to check with the ATO and Fairwork about that (or Employment NZ if you're in NZ).

PAYG withholding calculations on termination pays are different to normal pays and depend on the type of termination payment so if you think you've been overtaxed I'd recommend checking that with the ATO.

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