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Michelle- Product Champion
Level 2

Enter Redundancy Payment in Pay run.

One of my staff has been made redundant and I need to record this and their final payout, can you please help me do this correctly?

Solved
Best answer May 27, 2020

Best Answers
Michelle- Product Champion
Level 2

Enter Redundancy Payment in Pay run.

Redundancies and Employment Termination Payments
1.   Go to the Employees tab.
2.    Click New Pay run button.
3.    Click the name of the employee to expand the details.
4.     Click Actions on the bottom right hand side.
5.     Choose Terminate Employee.
6.    Enter the employee's termination date and then click on Save.
7.    Check the ETP/Redundancy option that appears.

Note: Checking this box will allow you to enter the ETP Type R amounts to be paid to the employee.
8.    Enter the correct values for the tax free component and total taxable amount (we've included links to the relevant pages on the ATO website at the bottom of this article to assist).
9.    Click on the Save button.
10. Finalise pay run and lodge to ATO.

 

 Note: When you finalise a pay run containing an ETP termination, the ETP amounts that are applicable will be shown on the STP final event. Once an employee is terminated within a pay run, they are automatically marked as 'is final' within the STP pay event.  

 

Here are useful ATO Resources that you can use:
https://www.ato.gov.au/Business/Your-workers/In-detail/Taxation-of-termination-payments/?page=2#Paym...

https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/nat71947.pdf 

https://www.ato.gov.au/Business/Your-workers/In-detail/Taxation-of-termination-payments/?anchor=Taxf... 

 

View solution in original post

1 Comment 1
Michelle- Product Champion
Level 2

Enter Redundancy Payment in Pay run.

Redundancies and Employment Termination Payments
1.   Go to the Employees tab.
2.    Click New Pay run button.
3.    Click the name of the employee to expand the details.
4.     Click Actions on the bottom right hand side.
5.     Choose Terminate Employee.
6.    Enter the employee's termination date and then click on Save.
7.    Check the ETP/Redundancy option that appears.

Note: Checking this box will allow you to enter the ETP Type R amounts to be paid to the employee.
8.    Enter the correct values for the tax free component and total taxable amount (we've included links to the relevant pages on the ATO website at the bottom of this article to assist).
9.    Click on the Save button.
10. Finalise pay run and lodge to ATO.

 

 Note: When you finalise a pay run containing an ETP termination, the ETP amounts that are applicable will be shown on the STP final event. Once an employee is terminated within a pay run, they are automatically marked as 'is final' within the STP pay event.  

 

Here are useful ATO Resources that you can use:
https://www.ato.gov.au/Business/Your-workers/In-detail/Taxation-of-termination-payments/?page=2#Paym...

https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/nat71947.pdf 

https://www.ato.gov.au/Business/Your-workers/In-detail/Taxation-of-termination-payments/?anchor=Taxf... 

 

View solution in original post