There is a clause in the exit agreement for an ex-employee that if a show that he worked on during his tenure with the company is put to production, he will get a bonus amount. The employee has since left for less than 1 year and the show is made. The bonus is now payable to him but does this attract superannuation?
Kind regards
Stephanie
G'day @Stephaniek 👋
Yes, as per the ATO guidance (Table 10), regardless if the employee is active or terminated 😉
Deanne
Thank you! I am also expecting to process this via payroll but the ex employee was of the thinking of invoicing via his ABN. However I do not think that this is the correct treatment as the bonus was signed under his exit agreement under the capacity of employee. If he needs to invoice, it'd be issued with TFN stated and the same PAYG would apply. Am I correct?
10 Apr 2025 · 4 min read time
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