• PAYG withholding – death of an employee

    Withholding from payments for work and services after death

    Generally, you should not withhold amounts from salary or wages paid after the death of an employee. This applies to income that was earned prior to death, but paid after the death of the employee.

    Similarly, you should not withhold amounts from payments for unused annual leave or unused long service leave paid after the death of the employee.

    Attention

    You may need to withhold from a death benefit employment termination payment (death benefit ETP). This means any amount that would have been an ETP if the employee was alive at the time of payment. Examples include unused sick leave, unused rostered days off or a 'golden handshake'.

    For information on death benefit ETP, refer to Employment termination and other payments.

    End of attention
      Last modified: 23 May 2014QC 16602