How to I calculate and report tax on ETP

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PayrollDeanne · Answer

Unused leave on termination is NOT AN ETP!!! Tax for unused leave on termination has its own tax table (https://www.ato.gov.au/tax-rates-and-codes/payg-withholding-schedule-7-tax-table-for-unused-leave-payments-on-termination-of-employment). Read all of it thoroughly, then go back to the withholding rates table section. Don't just go to the rates and ignore the rest! Refer to the excellent ATO STP2 Employer Guidance (https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/when-an-employee-transfers-or-leaves) for reporting labels. Deanne

How to I calculate and report tax on ETP

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