How do I generate a employment termination payment?
Employment termination payments (ETP): a payment given to an employee, or another person, as a result of the termination of the employee's job. ETP's are taxed at different rates depending on your employee's age and length of employment. Reasons for termination can include age retirement, resignation, dismissal, termination due to death or redundancy. For further information click on the following ATO link: https://www.ato.gov.au/forms/payg-payment-summary---employment-termination-payment-from-1-july-2012/
To set up an ETP in Cashbook please do the following process:
Go to Payroll
On the next screen, Add a name of the payment
The next task is to set up your employees pay to include the termination payment.
Add your employees pay as per normal
Click on the Employment Termination Payment tab, choose the payment from the dropdown and fill in the details as per your accountants' advice.
Finally, complete the pay and submission to the ATO.