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 Type R amounts to be paid to the employee:
If there are any manual Type O payments that need to be processed for the employee in the pay run, click here to follow the steps, based on the type of payment it is.
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.
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.