Lump Sum Payments - Employer Reporting

What should employers report on an employee’s statement of earnings (which most people still call a group certificate)?

Do not include any amount shown at a lump sum payment field in Gross payments.  You must show each lump sum payment as the appropriate payment type.

There are four types of lump sum payments:-

  1.   Amounts paid for leave entitlements not shown.
  2.   Amounts paid for unused long service leave that accrued before 16 August 1978.
  3.   The tax-free component of a genuine redundancy payment or an early retirement scheme payment.
  4.   Amounts paid for back payment of salary or wages that accrued more than 12 months ago or any return to work payments.

The employer must include all PAYG amounts withheld from lump sum payments in the total tax withheld.

The Australian Taxation guide “How to Complete the PAYG Payment Summary – Individual Non-Business” form is useful or call your tax adviser.
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Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.