Only available to Australian businesses using Single Touch Payroll reporting An employment termination payment (ETP) is a lump sum payment made to an employee because their employment has finished. ETP includes payments for unused rostered days off, payments in lieu of notice, a gratuity or 'golden handshake', and more. For a full list of payments that are and are not ETPs, see the ATO website. UI Text Box |
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| ETP does not include payments for unused annual leave. For more information on paying out unused annual leave to a terminated employee, see Processing a final pay. |
And because you'll be reporting your ETPs to the ATO with Single Touch Payroll, there's no need to create separate payment summaries for your employees. Just set up your ETP pay items and do a pay run. Easy! Setting up ETP in MYOB EssentialsBefore processing your first ETP, you need to set up ETP pay items. Processing an ETP pay runAfter you've set up the ETP pay items, you're ready to assign the ETP pay items to your terminated employees and process an ETP pay run. UI Expand |
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title | Processing an ETP pay run |
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| Processing an ETP pay runAdding ETP pay items to an employeeBefore doing a pay run, you first need to add the correct ETP pay items (ETP taxable earning, ETP non-taxable earning, and/or ETP tax-withheld deduction) to the terminated employee. The ETP pay items used may differ from employee to employee, and depends on a number of factors. If you're unsure which of the 3 ETP pay items to add, check with the ATO or your accountant. - Go to the Payroll menu and click Employees.
- Select the terminated employee.
- Click into the Pay items - earnings & deductions tab.
- Under Earnings, click into the Add earning... dropdown list and select the ETP taxable earning and/or the ETP non-taxableearning.
- If you need to add the ETP tax-withheld deduction, select it from the Add deduction... dropdown list under the Deductions heading.
- When you've finished adding the ETP pay items, click Save.
- Repeat steps 2-6 for every terminated employee who needs an ETP.
Processing an ETP pay runAfter you've set up your ETP pay items and added them to the terminated employees, you're ready process the ETP pay run. - Click into Payroll menu and select Enter pay.
The Pay centre page appears. Select only the employees who need ETPs. UI Text Box |
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| Note that this pay run should only include ETPs. If you also need to pay out normal earnings or personal leave, do so in a separate pay run. See Processing a final pay for more information. |
- Click Start pay run.
- For any non-ETP earnings or deductions, enter 0 in the Hours or Amount column. This is because you should only pay ETPs in this pay run.
- Enter required amounts in the ETP fields.
- Click ETP benefit type button.
The ETP benefit type window appears - Select a benefit type from the dropdown list.
- Choose a benefit code.
- When you're finished, click Save.
- Click Review payslips.
The Review payslips page appears - Double check the ETP amounts on the pay slips to ensure they're correct.
- Click Finish pay run.
The Pay run summary page appears. - Click Looks good.
- A window appears asking you to authorise sending this payroll information to the ATO.
- If you are the authorised sender, enter your name in the Authorised sender field, and click Send.
- A message appears asking you to print your pay slips and finish the pay run.
A Pay Run Complete confirmation message appears.
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