How to complete the PAYG payment summary - employment termination payment form

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These instructions will help you complete the PAYG payment summary - employment termination payment (NAT 70868) form.

For payments made on or after 1 July 2012 refer to PAYG payment summary - employment termination payment (from 1 July 2012).

When to use this form

Use this form 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 was $160,000 for the 2010-11 financial year)
• a trustee of a deceased employee's estate.

You should provide separate payment summaries for payees receiving the following payments: transitional termination payment non-transitional termination payment. The payment summaries should specify the amounts for each of these payments.

Do not use this form for amounts you have withheld from any of the following payments:

• 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
• superannuation lump sums
• superannuation income streams
• personal services income attributed to an individual.

Do not use this form where you have paid tax for personal services income attributed to an individual.

To obtain copies of the forms and instructions for each of these situations, phone our publications ordering service on 1300 720 092. You must quote your ABN to use this service.