Summary

Employee Termination Payment Summaries makeup records are created when you save the Employee Terminations record or when you upgrade to the release version that includes Employee Termination Payment Summaries.

Fields

These fields are usually read-only, except for Amount over cap override, which is editable.

• Payment type

  Note: In Transaction View, you can use Customise Columns to add the Text column to display the payment type.

• Tax-free threshold
• Pre-July 1983 tax-free amount
• Post-June 1994 tax-free amount
• Taxable component
• Total tax withheld
• Amount under cap
• Amount over cap override - Amount that will be taxed at the higher non-concessional rate of 46.5%; overrides the normal pay processing tax calculation.
• Payment summary code.

Upgrade process

When you upgrade to the release version that includes Employee Termination Payment Summaries, the makeup records are automatically generated based on the existing Employee Termination records created in the 2012-2013 tax year.

The upgrade process creates one Employee Termination Payment Summaries record for each Employee Terminations record and it uses the following values:

• Payment type - See table.
• Tax-free threshold – TaxFreeThreshold value of the parent record.
• Pre-July 1983 tax-free amount - ETPPreJuly83 value of the parent record.
• Post-June 1994 tax-free amount - ETPPostJune94 value of the parent record.
• Taxable component – ETPPostJune83 value of the parent record.
• Total tax withheld – LumpP value of the associated pay sequence TransHistoricalMaster record. If an adjustment (or related adjustment) exists, it uses the GetDependantEtpTaxTotal function. If no pay sequence exists for the ETP, it uses the parent record TaxWithheld value.
• Amount under cap – AmountUnderLowerCap of the parent record.
• Amount over cap override - WholeOfIncomeHigherAmount of the parent record.
• Payment summary code – See table.

  Note: Pre-July 2012 ETPs have a payment summary code added even though they had no code.

• Notes tab – "Inserted on upgrade" for records created during the upgrade to 2013-2014. For new ETPs, after you process and close the termination pay, the Notes tab shows ETP summary details..

  Note: EmployeeTerminationId is the EmployeeTerminationId value of the parent record.

Old Field

New Field

Comment

ETP Type

Termination Type

Payment Type

Pay Summary Code

OR, AD

Bona-fide redundancy or approved early retirement

Life Benefit (Excluded)

R

Original payment or subsequent payment in same year

OR, AD

Invalidity (permanent disability)

Life Benefit (Excluded)

R

RE, RA

Bona-fide redundancy or approved early retirement

Life Benefit (Excluded)

S

Original payment made in previous income year

RE, RA

Invalidity (permanent disability)

Life Benefit (Excluded)

S

Original payment made in previous income year

OR, AD

[Blank]

Life Benefit (Non-excluded)

O

Payment not described by an R. You may need to edit the record. For example, you would need to change unfair dismissal, personal injury, harassment or discrimination to Payment Type = "Bona-fide redundancy or approved early retirement" and Pay Summary Code = "R" (see below).

RE, RA

[Blank]

Life Benefit (Non-excluded)

P

OR, AD

Death - Payment to Non-Dependant

Death Benefit

N

RE, RA

Death - Payment to Non-Dependant

Death Benefit

B

Original payment made in previous income year

Any

Death - Payment to Dependant

Death Benefit

D

Multiple payments have the same code.

Any

Death - Payment to Trustee

Death Benefit

T

Multiple payments have the same code.

Editing Employee Termination Payment Summaries

After you upgrade, you may need to edit Employee Termination Payment Summaries records from the 2012-2013 tax year, such as harassment, compensation, unfair dismissal ETPs that originally had Termination Type = [Blank]. The upgrade process creates Employee Termination Payment Summaries records with Payment type = "Life Benefit (Non-excluded)" for these ETPs, but they should be "Life Benefit (Excluded)".

Example: An employee had an OR. Original Employee Terminations record with Termination reason = “Unfair Dismissal" and Termination type = [Blank]. The upgrade process created an Employee Termination Payment Summaries record with Payment type = "Life Benefit (Non-excluded)" and Payment summary code = “O”. However, a genuine unfair dismissal should have Payment type = "Life Benefit (Excluded)" and Payment summary code = “R”.

1. Open the Employee Terminations record.
2. Switch to Edit mode.
3. Right-click the record and select Change Exclusion State.

   Note: This option is available only if the original Employee Terminations record had a blank Termination date, a Date of payment after 01/07/2012, but before the upgrade date, and it was not superseded by another Employee Terminations record.

   The Change Exclusion State option changes the Excluded/Non-excluded payment values for all payments on the Employee Termination Payments tab.

   • If Payment summary code = “O” or "P", all payments are changed to "Excluded".
   • If Payment summary code = “R” or "S", all payments are changed to "Non-excluded".

   In this example, Payment summary code = “O” so all payments are changed to "Excluded".

4. Save the Employee Terminations record to update the Payment type and Payment summary code in the Employee Termination Payment Summaries record.
   • If Payment summary code = “O” or "P", the Payment type and Payment summary code are changed to the “R” or "S" equivalents.
   • If Payment summary code = “R” or "S", the Payment type and Payment summary code are changed to the “O” or "P" equivalents.

   In this example, Payment summary code = “O” so the Payment type changed to "Life Benefit (Excluded)" and the Payment summary code changed to "R".