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  • Allowances

    Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.

    For more information on when to withhold and report on allowances, refer to Withholding for allowances.

    Holiday pay, long service and employment termination payments

    Employees who continue working for you

    You must include holiday pay (including any leave loading) and long service leave payments as part of normal earnings, except when they are paid on termination of employment.

    For more information, refer to Withholding from leave payments for continuing employees.

    Employees who stop working for you

    This tax table does not cover any lump sum payments made to an employee who stops working for you.

    If an employee has unused annual leave, leave loading or long service leave, refer to Tax table for unused leave payments on termination of employment.

    Any other lump sum payments may be employment termination payments, refer to Tax table for employment termination payments.

    Do not withhold any amount for study and training support loans debts from lump sum termination payments.

    Leave loading

    If you pay leave loading as a lump sum, you would need to use Tax table for back payments, commissions, bonuses and similar payments to calculate withholding.

    If you pay leave loading on a pro-rata basis, then add the leave loading payment to earnings for the period to calculate withholding.

    Last modified: 13 Oct 2020QC 63812