Hi, I have an employee who has been terminated and is being paid in lieu of notice (type 0) This person's annual salary is $81k (and probably will actually earn less this year), but if I tax the ETP at a flat 32%, they are getting taxed at a higher rate than if they were to be concessionally taxed. Do they get this back when they do their tax return?
Hi @EM6,
It depends on whether your employee has paid enough tax on their total income for the financial year. When they lodge their tax return, if they paid too much tax they may receive a refund. Whether they get this amount back depends on their personal circumstances.
Hope this helps, let us know if you have any further questions.
Hi @EM6,
It depends on whether your employee has paid enough tax on their total income for the financial year. When they lodge their tax return, if they paid too much tax they may receive a refund. Whether they get this amount back depends on their personal circumstances.
Hope this helps, let us know if you have any further questions.
779 views
1 replies