AU: Change To Lump Sum D Payment Of Redundancy For Over 65 (Doc ID 2642479.1)

Last updated on JUNE 07, 2021

Applies to:

Symptoms

On : 12.1 HRMS RUP11 version, Australian Payroll

 The taxation of ETP Payments has not changed, nor has the definitions of what  is a redundancy. However, previously if the employee was over 65, they were
 taxed as if a normal termination with no tax concessions.
 From 1 July 2019 depending on the employee's pension qualifying age will  determine the tax treatment of the redundancy payment.

STEPS
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The issue can be reproduced at will with the following steps:
1. Login to AU HRMS Manager
2. Terminated Employee   with Type 'Bona-Fide Redundancy and Approved Early Retirement'
3. Enter the Future Retirement Date 
4. Attach ETP on Termination, with Redundancy Payment 
5. Run the Payroll, it doesn't generate the Lump sum D component.

 

Cause

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