Lump Sum Payment (Genuine Redundancy or Early Retirement)
Nov 16, 2024
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🎯 The reporting of payments for Lump Sum Payment (Genuine Redundancy or Early Retirement) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Lump Sum Payment (Genuine Redundancy or Early Retirement) continues to be reported under Lump Sum Type Code = D.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Lump Sum Payment (Genuine Redundancy or Early Retirement) is applicable when the Payee has ceased employment due to Ill Health or Redundancy and requires payment based on their complete years of service up to the age-pension age.
Lump Sum Payment (Genuine Redundancy or Early Retirement) uses the $ (or % of Rate Per Hour) set within the Pay Rate and Leave Entitlements are not applicable. Payments with this pay type may be considered either Taxable or Non-Taxable, however, they are not W1 (Total of Salary, Wages & other payments) or Ordinary Time Earnings (OTE).
