If you have a terminated employee that is to receive a payment under a DOA for ER payment agreement then is this treated as a gratuity payment under ETP O?
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Hi @Tresa.White,
It depends – it isn’t automatically treated as a gratuity employment termination payment (ETP).
Payments made on termination can fall into different ETP categories, and the label (‘gratuity’, ‘settlement’, etc.) doesn’t determine the treatment.
A payment under a deed of agreement (DOA):
may be treated as an ETP if it’s made in consequence of the termination
- but whether it is coded as ETP O (other / gratuity-type) depends on the nature of the payment, not just that it’s in a DOA.
You need to identify what the payment is for, for example:
- compensation for loss of employment
- unpaid entitlements
- damages or settlement amounts.
Different components can be treated differently.
Because DOA payments often include multiple components, you’ll need to review the agreement terms carefully (or get advice) to determine the correct ETP treatment.
G'day @Tresa.White 👋
A specific component of pay is not directly attributed to a specific ETP type. It's not a simple one-to-one relationship 🤓
The ETP type is as a result of a combination of factors: cessation reason, age of employee in relation to their age-pension age, purpose and circumstances of the payment and the amount in relation to various thresholds 😉
More information is required to assist you 🙂
Deanne
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