I have seen several threads on payments to deceased employees but I am struggling to find the specific answers to two questions in the ATO information.
There is an unused annual leave/holiday pay amount (less than $4,000) not paid prior to an employee's passing date and there are no other payments owing.
This should be paid as a tax free payment to the Legal Personal Representative / Estate / Beneficiary (yet to be advised as only recent event) and not to the employee's account, nor should it be reported on the employee's payment summary.
What I am trying to understand is the following, and I cannot see a clear idea in all of the ATO information:
- When the time comes, should I pay this unused annual leave to the LPR/Beneficiary via our payroll system (set them up specifically) as we use STP Phase 2, or is it done as a bank transfer and a manual payment summary issued to the LPR/Beneficiary?
- While it is not an ETP, does this require any special paycode as being paid for a deceased employee, or does it get paid using an annual leave on termination code, same as what would be used for an employee who resigns?
Thanks for any assistance that can be offered.
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