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SP007(Newbie)Newbie
19 May 2026

If an employer receives a lumpsum payment for lets say 3 fortnightly pay periods from services Australia for employee paid parental leave, what should be the best practice for employer in terms of PAYG Calculation, should employer calculate one lump sum in one pay run → tax on total lump sum OR

Divide it in 3 separate missed pay periods then deduct the PAYG difference IN TOTAL PAYG in the payrun → calculate each fortnight separately and sum PAYG? what is the method of calculating correct PAYG in this scenario?

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Paid Parental Leave Payments through Employer- PAYG Calculation | ATO Community