AU: Change To Lump Sum D Payment Of Redundancy For Over 65
(Doc ID 2642479.1)
Last updated on JUNE 07, 2021
Applies to:Oracle HRMS (Australia) - Version 12.1 HRMS RUP11 and later
Information in this document applies to any platform.
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.
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.
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!
In this Document