Straight to content

Employee leaving ? Know your employer obligations

Back to front page

When an employee leaves you have certain obligations to be met under:

  • Eligible termination payments (ETP)
  • Superannuation
  • Pay as you go (PAYG)
  • Fringe Benefits Tax (FBT)

Eligible termination payments (ETPs):

  • if the employee is due a lump sum payment determine if any part of the payment is an ETP
  • calculate the different components of the ETP
  • provide the employee with an ETP pre-payment statement if the gross ETP is more than $5,000
  • pay the ETP in accordance with your employee’s instructions
  • if paying a cash ETP of more than $5,000, complete an Employer’s reasonable benefits limit reporting form and send this to the Tax Office by the 14th day of the month after the ETP is paid to the employee.
  • If rolling the ETP over into the employee’s superannuation fund, give the fund an ETP roll over statement
  • provide a completed ETP payment summary to the employee within 14 days of the ETP being paid to the employee
  • include the ETP payment summary information in your PAYG payment summary statement, and
  • keep the necessary ETP and RBL records


Superannuation

  • calculate and pay any final superannuation contributions by the quarterly cut-off date
  • ensure you meet requirements to report superannuation contributions to your employees
  • keep the necessary superannuation guarantee and superannuation choice records.

Fringe benefits tax (FBT)

  • include reportable fringe benefits on employee’s final payment summary
  • keep the necessary FBT records.

Pay as you go (PAYG)

  • make any final PAYG withholding payments on employee’s behalf
  • forward payment summary to the employee by 14 July, or earlier if requested
  • retain employee’s TFN declaration for the current and next financial year
  • include the details of any final payments made to the employee in your PAYG payment summary statement
  • keep the necessary PAYG withholding records.

If you would like more information on your employer obligations, please contact this office.

Back to front page