• Delayed termination payments

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Generally, a payment must be made within 12 months of termination to qualify as an ETP. A payment made outside 12 months is a delayed termination payment, unless we have given approval for the payment to be treated as an ETP.

    When a TFN is provided

    If your employee has given you their TFN, withhold an amount equal to 31.5% from the payment. Withholding amounts calculated should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar.

    When a TFN is not provided

    You must withhold 46.5% from the payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) who has not given you their TFN.

    Last modified: 29 Oct 2013QC 34733