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maripher's avatar
maripher
Cover User
2 years ago

MONIES IN LIEU OF NOTICE PERIOD NOT WORKED-WHAT IS ATO REPORTING CATEGORY?

Good Morning.  Anyone please to help me.  When employees resigned they need to give notice period.  And when they did not work on the notice period we need to take monies from their unused holiday as per our collective agreement.  I've created a Payroll Category under Wages for the Notice period not worked as "Forfeit Wages In lieu of Notice period.   Is this correct?  And what is the ATO Reporting Category of this?  Gross Payment or Not Reportable?  Will really appreciate anyone who will reply to this.

 

Best Regards,

Jema 

@Tracey_H

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    2 years ago

    Hi maripher 

     

    Thanks for your post. The name given to the payroll category is personal choice, it just needs to be clear in both business reports and employee payslips what the payment is for. We're not permitted to advise on the ATO reporting category you should assign, you will need to check with the ATO or your accountant.

     

    I'd also check with Fairwork on the laws around deducting money for notice not worked. Typically, you're not allowed to deduct money from accumulated leave, regardless of any agreements: Fairwork - My employee left without giving notice

     

    Please let me know if you need further help.

     

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