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Annietax(Newbie)Newbie
8 Mar 2025

Dear ATO,

I am currently on workers' compensation, and my employer suspended my weekly payments from July 2022 to December 2023. The back payment was made in December 2023. The insurer's payroll reported the Lumesum E amount to the ATO for the period of July 2022 to December 2022, for the 2023-2024 financial year.

Iโ€™m questioning whether this is the correct calculation, as only the back payment for the period of July 2022 to December 2022 was applied to Lumesum E.

Additionally, Iโ€™m wondering why the back payment for the period from December 2022 to June 2023 is not included in the work cover back payment offset for the 2022-2023 financial year.

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3 replies
352 views
3 replies

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Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
8 Mar 2025

Hiya @Annietax ๐Ÿ‘‹


Arrears payments are classified as Lump Sum E when 2 criteria are met:

  1. Arrears payment was payable >12 months prior to when it was paid; and
  2. YTD amount of the qualifying payments (point 1. above) is > or = the thresold ($1,200)

Given the arrears payment was paid in December 2023, only the payments payable from July-Dec 2022 are classified as Lump Sum E ๐Ÿ˜‰ The other amounts are just arrears payments, reported as Workers' Compensation absence (Paid Leave type- W)


Deanne

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Most helpful reply

PayrollDeanne(Taxicorn)Taxicorn
8 Mar 2025

Hiya @Annietax ๐Ÿ‘‹


Arrears payments are classified as Lump Sum E when 2 criteria are met:

  1. Arrears payment was payable >12 months prior to when it was paid; and
  2. YTD amount of the qualifying payments (point 1. above) is > or = the thresold ($1,200)

Given the arrears payment was paid in December 2023, only the payments payable from July-Dec 2022 are classified as Lump Sum E ๐Ÿ˜‰ The other amounts are just arrears payments, reported as Workers' Compensation absence (Paid Leave type- W)


Deanne

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Lumpsum E for workcover backpayment | ATO Community