Is Lump Sum D Superable?
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2,544 views
2 replies
Hiya @harnahpolak 👋
Lump sum D is the "redundancy payment" portion of the total termination payments made when an employee is made redundant, as defined in The Fair Work Act 2009 S119(2) that defines a number of weeks per completed year of continuous service. Just that component, it doesn't also include the payment in lieu of notice (PILON) as referenced in S117(3)(a). PILON is an ETP.
The ATO SGR 2009/2 defines which payments are OTE on which super guarantee is calculated. You can see in paragraph 74 that states:
74. Redundancy payments made on termination of employment are not a reward for services rendered by an employee, even if part of the payment is calculated by reference to the employee's period of service with the employer. They are payments to compensate the employee for the loss of their job; not a reward for their services.
It is under the heading "Certain payments that are not 'salary or wages'". As per paragraph 9, if it is not S/W, then it is not OTE.
No, lump sum D is not superable. Note paragraph 38 that defines PILON as OTE.
Deanne
All replies
Hiya @harnahpolak 👋
Lump sum D is the "redundancy payment" portion of the total termination payments made when an employee is made redundant, as defined in The Fair Work Act 2009 S119(2) that defines a number of weeks per completed year of continuous service. Just that component, it doesn't also include the payment in lieu of notice (PILON) as referenced in S117(3)(a). PILON is an ETP.
The ATO SGR 2009/2 defines which payments are OTE on which super guarantee is calculated. You can see in paragraph 74 that states:
74. Redundancy payments made on termination of employment are not a reward for services rendered by an employee, even if part of the payment is calculated by reference to the employee's period of service with the employer. They are payments to compensate the employee for the loss of their job; not a reward for their services.
It is under the heading "Certain payments that are not 'salary or wages'". As per paragraph 9, if it is not S/W, then it is not OTE.
No, lump sum D is not superable. Note paragraph 38 that defines PILON as OTE.
Deanne
Thank you Deanne