Employment termination payment

Use PAYG payment summary – employment termination payment if you make an employment termination payment (ETP) to:

• an employee whose employment has been terminated
• a non-dependant because of an employee's death
• a dependant because of an employee's death, if the taxable component of the payment exceeds the ETP cap (the ETP cap is $200,000 for the 2017–18 financial year)
• a trustee of a deceased employee's estate.

Do not use this payment summary for amounts you have withheld from payments that are:

• salary or wages including unused leave paid to an employee, company director or office holder
• under a labour-hire arrangement or other specified payment
• under voluntary agreements to withhold
• for supplies where an ABN was not quoted
• super lump sums
• super income streams
• personal services income attributed to an individual.

Find out about:

• Single Touch Payroll and choosing whether to do payment summaries

See also:

• PAYG payment summary – employment termination payment (NAT 70868-02.2014) – instructions and form for ETPs made from 1 July 2012
• PAYG payment summary – employment termination payment (NAT 70868-04.2008) – sample form for ETPs made before 1 July 2012
• How to complete the PAYG payment summary – employment termination payment formThis link will download a file (NAT 70996-04.2011)
• Taxation of termination payments – for changes to ETPs that started on 1 July 2012