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Edward-Product Champion
Mar 30, 2020 12:42 AM UTC
Question

Record lump sum payment and finalize redundancy

Due to business restructure, we have made couple of employees redundant. How can I record that in a payrun to pay them a lumpsum?

5 replies

X-Zachary
Mar 30, 2020 12:48 AM UTC

To record and lump sum payment and to finalise a redundancy, please follow the steps below:

 

  1. Create a New Pay Run and make sure the employee who is being make redundant is included in this payrun
  2. In the payrun screen, click on the name of the employee
  3. Look for green Actions button towards the bottom right
  4. Click Actions and select Terminate Employee
  5. Review and make sure Ordinary Hours worked to the employee is also included in the earning session.

    At this point, the payment detail session for this employee should turn in pink to highlight this employee is being terminated and accrued leave balance will be added to the earning session for this employee. Tax and super would also be atomically adjusted based on the additional earnings.

  6. As part of termination/redundancy, select redundancy/ETP tick box
  7. Enter in the ETP type "R" taxable amount
  8. If applicable, enter ETP Type "O" amounts into Type "O" fields
  9. After reviewing amounts & tax figures, press the save button
  10. After reviewing redundancy payment & information entered is correct, Press the green Finalise Pay Run Button and proceed as per normal Pay Run process from here.
David B2
Apr 15, 2021 10:10 PM UTC

Employee James Lynch is querying the Employment Term Payment - ETP Type R. - $2,200.00  The ATO have told him this is Not correct. Attached is the Payslip

Kristian__S
Apr 16, 2021 1:50 AM UTC

Hi David B2,

 

I don't think you have attached the pay slip correctly as I cannot see it on our Community site.

 

Also, are you able to give us a little more context into the situation with the employee you have mentioned in your original query? 

 

What queries did you have with the ETP Type R? 

 

Sorry, I just need some more information here to help you as best as I can.

 

Kristian. 

Edward-Product ChampionAuthor
Mar 30, 2020 12:54 AM UTC

1. Create a New Pay Run and make sure the employee who is being make redundant is included in this payrun

2. In the payrun screen, click on the name of the employee

3. Look for green Actions button towards the bottom right

4. Click Actions and select Terminate Employee

At this point, the payment detail session for this employee should turn in pink to highlight this employee is being terminated and accrued leave balance will be added to the earning session for this employee. Tax and super would also be atomically adjusted based on the additional earnings.

5. Review and make sure Ordinary Hours worked to the employee is also included in the earning session

6. As part of termination/redundancy, select redundancy/ETP tick box

7. Enter in the ETP type "R" taxable amount

8. If applicable, enter ETP Type "O" amounts into Type "O" fields

9. After reviewing amounts & tax figures, press the save button

10. After reviewing redundancy payment & information entered is correct, Press the green Finalise Pay Run Button, and proceed as per normal Pay Run process from here.

Kass_B
Mar 30, 2020 1:05 AM UTC

To record a lump sum payment and to finalise a redundancy, please follow the steps below:

  1. Create a New Pay Run and make sure the employee who is being make redundant is included in this payrun
  2. In the payrun screen, click on the name of the employee
  3. Look for green Actions button towards the bottom right
  4. Click Actions and select Terminate Employee
  5. Review and make sure Ordinary Hours worked to the employee is also included in the earning session.

At this point, the payment detail session for this employee should turn pink to highlight this employee is being terminated and accrued leave balance will be added to the earning session for this employee. Tax and super would also be automatically adjusted based on the additional earnings.


6. As part of termination/redundancy, select redundancy/ETP tick box
7. Enter in the ETP type "R" taxable amount
8. If applicable, enter ETP Type "O" amounts into Type "O" fields
9. After reviewing amounts & tax figures, press the save button
10. After reviewing redundancy payment & information entered is correct, press the green Finalise Pay Run Button and proceed as per normal Pay Run process from here.

 

- Kass

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