Payment in Lieu of Notice (Equal to or less than the Cap)
May 23, 2023
657
🎯 The reporting of payments for Payment in Lieu of Notice (Equal to or less than the Cap) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Payment in Lieu of Notice (Equal to or less than the Cap) continues to be reported under ETP Type Code = R, O, S or P.
🎯 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.
Payment in Lieu of Notice (Equal to or less than the Cap) is applicable when the Payee ceases employment due to Voluntary Cessation, Dismissal, Contract Cessation, Transfer, Ill Health or Redundancy and receives a payment in lieu of notice per Table A: Withholding rates for ETPs which is equal to or less than the ETP Cap Amount.
Payment in Lieu of Notice (Equal to or less than the Cap) uses the Rate Per Hour set in the Payee Master File (100.00%) and Leave Entitlements are not applicable. Payments with this pay type are considered to be Taxable and Ordinary Time Earnings (OTE), however they are not Salary & Wages.
