PAYG payment summaries and guidelines

PAYG payment summary - employment termination payment

This payment summary is used if you make an employment termination payment (ETP) to:

• an employee whose employment has been terminated
• a non-dependant because of an employee's death
• a dependant because of an employee's death, if the taxable component of the payment exceeds the ETP cap (the ETP cap is $160,000 for the 2010-11 financial year)
• a trustee of a deceased employee's estate.

Do not use this payment summary for amounts you have withheld from payments that are:

• salary or wages paid to an employee, company director or office holder
• under a labour hire arrangement or other specified payment
• under voluntary agreements to withhold
• for supplies where an Australian business number (ABN) was not quoted
• super lump sums
• super income streams
• personal services income attributed to an individual.

From 1 July 2012, you need to refer to: ATO sample form - PAYG payment summary - employment termination payment (NAT 70868-06.2012) Guide for completing this payment summary - How to complete the PAYG payment summary - employment termination payment form (NAT 70996-07.2012).

For ETP's made prior to 1 July 2012, you need to refer to: ATO sample form - PAYG payment summary - employment termination payment (NAT 70868-04.2008) Guide for completing this payment summary - How to complete the PAYG payment summary - employment termination payment form (NAT 70996-04.2011).

For more information regarding the changes to ETP's that commence 1 July 2012, refer to leaving work.