PAYG payment summary – employment termination payment
An employer must give you a PAYG payment summary – employment termination payment if they have terminated your employment and paid you an ETP. Your employer will record the amount of your ETP and tax withheld and supply you with a payment summary within 14 days of making the payment. The payment summary will have a code that you will use on your tax return when you lodge it at the end of the income year.
Your employer will make a decision on whether your ETP is excluded or
non-excluded, and this will be identified on your payment summary. You can discuss this with your employer before leaving your job. We will then work out which cap applies and apply the correct rate of tax based on the ETP code on the payment summary.
For a list of ETPs and the ETP codes, see table 1.
For more information on ETP payment summaries, refer to PAYG payment summary – employment termination payment (NAT 70868)