Add Related Adjustment ETP

In this example, Wendy Buller was terminated on 05/07/2015, but for tax reasons she received $1,000 of her redundancy payment as a related ETP on 20/07/2016. However, she should have received $1,200.

This topic shows how to add an "RA. Related adjustment" Employee Terminations record for Wendy's adjusted redundancy payment of $1,200 on 11/10/2016.

1. On Wendy Buller's ETP tab, open her R. Related Employee Terminations record (1090 Second Redundancy Payment).
2. Switch to Edit mode.
3. Right-click the related record and click Add Related adjustment.

   Exolvo automatically creates a new Employee Terminations record and populates most fields with values from Wendy's related record.

   Exolvo uses the following read-only values:

   Field	Value
   Employee termination type	RA. Related adjustment
   Status	UNCONFIRMED
   Termination being adjusted	1090 Second Redundancy Payment

4. Enter the following values on the Details tab:

   Field	Values
   Description	1090 Redundancy Adjustment
   Date of payment	11/10/2016

   

5. Enter the following amount on the Employment Termination Payments tab:

   Field	Amount
   Redundancy payment	1200.00

6. Save Wendy's related adjustment Employee Terminations record.

   Exolvo recalculates ETP components and tax to be withheld.

   If you need to pay out leave credits that were not included in the related record:

   1. Switch to Edit mode.
   2. Right-click the related adjustment record, and click Get leave credits payable on termination.

      Exolvo copies across leave credits owing that have Payout Method = "ETP".

   3. Check that all leave credits are included with the correct balances at time of termination.
   4. Save the related adjustment record to recalculate ETP components and tax.

   If you need to pay out unused sick leave that was not paid out in the related record:

   a. Switch to Edit mode.

   b. Right-click the related adjustment record, and click Get sick leave payable on termination.

   Exolvo copies across the employee’s sick leave rates and accruals at time of termination.

   c. Save the related adjustment record to recalculate ETP components and tax.

7. Confirm the related adjustment record.
8. Open a manual pay for the appropriate pay period.

   Note: You can also add related adjustment ETPs in a standard pay, but you have to ensure that the employee does not receive any extra transactions through payroll rules when you process the pay.

9. Customise Transaction View so you can view terminated employees. See Minimising Incorrect Payments for Terminated Employees.
10. Start to add Wendy Buller's transactions.
11. When the warning message appears, click Yes to continue.
12. Add Wendy Buller's transactions:

    Pay Header with Days worked this period = 0.0000

    504 - Post-termination payments (accept the default values). See Minimising Incorrect Payments for Terminated Employees.

13. Process the manual pay.
14. Close the manual pay.

    When you close the pay, Exolvo updates Wendy's related adjustment Employee Terminations record with the manual pay sequence number.

15. Run payslips and make payments.
16. Generate a PGPRTAXA092A - ETP Payment Summary (self print) v5.2 report and send it to the employee.

    Note: If the whole payment is tax-free, you do not have to generate this report. If the payment is a "Death to Trustee" ETP, send the report to the trustee of the deceased estate.

17. At tax year-end, generate a PGPRTAXA093A - PAYG Withholding Payment Summary Annual Report v11 (available in the 2013 Australian tax release) that includes details of the employee’s related adjustment termination payment.

Topic: 28521