Contents

Australian Termination Manual Introduction Termination Payments Employment Termination Payments (ETP) ETP Tax Rates Whole-of-income Cap Minimising Incorrect Payments for Terminated Employees Adding Transactions for Terminated Employees Import Pay for Terminated Employees Fair Work Act - Redundancy Payouts Processing Termination Transactions Salaried Employees ETP Process ETP Date Scenarios Termination Setup Company Settings - Termination Allowances tab Termination Types ETP Settings ETP Settings | Details tab ETP Settings | Rates tab Leave Credits Employee Terminations Details tab Employee Termination Types Beneficiary tab Employment Termination Payments tab Pre-Payment Details tab Payment Instructions tab Payment Summaries tab Amount Rolled-Over tab Leave Credits Paid tab Original ETPs Termination with no ETPs Check Final Pay Add Termination Transaction Termination with ETP Check Final Pay Add Employee Terminations Record Check Employee Terminations Record Add Termination Transaction Adjustment ETPs Add Adjustment ETP Related ETPs Add Related ETP Related Adjustment ETPs Add Related Adjustment ETP ETP and Whole-of-income Caps ETP Tax Calculations Lump Sum Adjustments Adjustment Example: Keep details on termination = "Yes" Adjustment Example: Keep details on termination = "No" Appendix 1: Taxation of Termination Payments Tax Payable on an ETP How the Whole-of-income and ETP Caps Apply Other Taxable Income Compensation Payments Redundancy ETP Paid in Parts Multiple ETPs Tax Losses and the Whole-of-income Cap ETPs Consisting of both Excluded and Non-excluded Parts Appendix 2: Reporting Payment Summary Amendments