As part of your Single Touch Payroll reporting, you need to notify the ATO of the termination. This lets the ATO know the employee's termination date, reason, and any ETP components in their final pay.
Am I reporting via STP Phase 2?
You can check in the STP reporting centre (Payroll command centre > Payroll reporting > Payroll Reporting Centre). If you don't see this label, you're on STP Phase 1. How do I get ready for STP Phase 2?
This step lets the ATO know that you won't be paying the employee again this payroll year. You can finalise the terminated employee now, or when you complete your STP finalisation at the end of the payroll year.
How do I remove an ETP from the Payroll Reporting Centre?
If an ETP amount you paid an employee is wrong, you can reverse the pay in AccountRight and you’ll be prompted to submit the reversal to the ATO for STP reporting. This will automatically remove the incorrect payment.