Termination - Death Benefit Time Off In Lieu (Tax Free)
Jan 20, 2025
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🎯 The reporting of payments for Death Benefit Time Off In Lieu (Tax Free) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Death Benefit Time Off In Lieu (Tax Free) continues to be reported under ETP Type Code = D or T.
🎯 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.
Death Benefit Time Off In Lieu (Tax Free) is applicable when the Payee ceases employment due to being Deceased and the Payee's Death Beneficiary (Trustee) and receives a payment for unused Time Off In Lieu per Table A: Withholding rates for ETPs regardless of the ETP Cap Amount.
Payments with this Pay Type use the Rate Per Hour set in the Payee Master File, and Leave Entitlements are not applicable. These payments are not considered W1 (Total of Salary, Wages, and other payments), Taxable, or OTE (SGAA).
