Holiday pay, long service leave and employment termination payments

Payees 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 annual and long service leave for continuing employees.

Payees who stop working for you

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

If a payee 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 HELP, SSL, TSL or Financial Supplement debts from lump sum termination payments.

Leave loading

If you pay leave loading as a lump sum, you now 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, add the leave loading payment to earnings for the period to calculate withholding.

Last modified: 16 Sep 2016QC 50010