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Paying your employees > Processing termination payments > Task 3: Create payroll categories for termination payments
Consult your accountant or visit the ATO at ato.gov.au/businesses for advice on how to calculate ETP and bona fide redundancy payments.
To create a termination payroll category
1
Go to the Payroll command centre and click Payroll Categories. The Payroll Category List window appears.
2
Click the Wages tab.
3
Click New. The Wages Information window appears.
4
Type the name of the wage category in the Wages Name field. For example, if you need to create a wage category for unused holiday pay, use a name such as Unused Holiday Pay.
5
Choose the type of wages—Salary or Hourly—according to the type of payment: Hourly for unused holiday pay, Salary for ETP amounts, etc.
6
Click Employee. The Linked Employee window appears.
7
In the select column (), click next to the employee who is leaving.
8
Click OK and then OK again. The Payroll Category List window reappears with the new payroll category in the list.
a
Click the Entitlements tab. The list of entitlement payroll categories appears.
c
Click Exempt. The Entitlements Exemptions window appears.
d
In the select column (), click next to the payroll category name to exclude any hours entered for this payroll category from being included in the entitlement accrual calculation.
e
Click OK and then OK again. The Payroll Category List window reappears.
10
Repeat from step 2 for each required termination payroll category.
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