Lump Sums

Overview

• Lump Sums A, B and D are derived during the processing of a termination pay.
  • Lump Sums A and B are derived from Annual leave, leave loading on Annual Leave and Long Service Leave required to be paid out on termination based on the age of entitlement at the time of payment (i.e. pre 78, pre 93 or post 93).
  • Lump Sum D is derived from the the tax-free amount of a genuine redundancy payment or approved early retirement scheme payment, up to the tax free limit, based on the payee’s complete years of service, for an employee up to their age-pension age.
• Lump Sum E is derived during pay processing, using allowances with Tax override type set to "Lump sum in arrears"
• Lump Sum W is derived during pay processing, using allowances with ATO Reporting Category set to "Return to Work"

Topic: 44824