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Informing your employees

Find out why you may receive an employment termination payment (ETP), how it is taxed and which amounts to report.

Last updated 9 November 2023

Employment termination payments – for employees explains:

  • how termination payments are taxed
  • how the caps work, including the tax implications for employees who are subject to the whole-of-income cap
  • what employees need to do with their income statements or payment summaries and how to report these payments on their tax return.

You can provide this information to employees with your letter of offer or pay as you go (PAYG) payment summaries.

 

 

QC26218