Once the Terminate Employee action has been selected (see here for instructions on how to terminate an employee within a pay run), check the "ETP/Redundancy" option that appears. Checking this box will allow you to enter the ETP amounts to be paid to the employee.
Once you have entered 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), click on the "Save" button and we will calculate the tax to withhold on the taxable amount as well as any Lump Sum D amounts to be reported on the employee's EOFY income statement.
Note: We don’t currently calculate any super on ETP amounts - you’ll need to add SG (where required) to the pay run by using the Adjust Super option from the Actions button within the employee record.
In order to view a breakdown of the PAYG withheld within the termination, you can click the '?' icon, and a 'Marginal Tax Rate Calculations' context panel will display. More information about this can be found here.
ETP reporting via STP
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.