Hi,
If an employee saves up all their overtime and wants to be paid in a lump sum, which lump sum payment does this come under-A, B, C, D or E
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Hiya @Nel65
None of those lump sums - that's not what a "lump sum" means.
You're referring to an arrears payment or backpay. Yes, you might technically receive a "lump sum" but that's not what the ATO Lump Sums mean on the ATO Income Statement.
Lump Sum A refers to unused leave paid on termination
Lump Sum B refers specifically to unused LSL that accrued < 16/8/78 paid on termination
There is no longer Lump Sum C as that referred to historical components of ETPs (termination)
Lump Sum D refers to the tax free component of a genuine bona-fide redundancy (termination)
Lump Sum E refers to the sum of payments made that were payable > 12 months before they were paid that sum (total within the FY) that are => $1,200
So, if you weren't paid your overtime for more than 12 months, then perhaps it may meet the definition of Lump Sum E.
More likely, however, it's just an arrears payment that is taxed marginally and reported as Gross (STP1) or as Overtime (STP2).
Deanne
Thankyou for clearing that up for me.
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