Announcements
Are you a tax professional needing a bit more time to lodge? Check out how to apply online for a deferral, or ask the Community!

ATO Community

Gifting employee with assets upon their resignation

Newbie

Views 60

Replies 1

Hi all,

 

An employee is voluntarily resigning and our business is gifting their mobile and laptop that is currently used for work.  The second-hand market value of these items would be around $1K.

 

This is considered an ETP, is that correct?  Would we need to deduct PAYG from her termination payment using the market value of the assets?

 

Many thanks.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hello @Henndigo,

 

You are correct!

 

Gifting a work phone and laptop as part of the employees termination arrangements is considered an ETP. The value of the gift is the market value of the phone and laptop directly before gifting them.

 

You are required to deduct PAGYW form the value of the gift.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hello @Henndigo,

 

You are correct!

 

Gifting a work phone and laptop as part of the employees termination arrangements is considered an ETP. The value of the gift is the market value of the phone and laptop directly before gifting them.

 

You are required to deduct PAGYW form the value of the gift.