When making final payments to an employee, you may be required to make an Eligible Termination Payment (ETP).

To determine if you are issuing an ETP, refer to the Australian Taxation Office (ATO) website for ETP payments.

The information below explains how to enter an Eligible Termination Payment (ETP) in LawMaster.

  1. Making the final payment to an employee (non ETP payment):
    When you need to make the final employee payment, including any payments for unused leave (e.g. annual leave, long service leave) , this is entered via a normal time sheet entry.  Refer to Last pay for terminating employee

  2. Processing the Eligible Termination Payment:
    To process an ETP you will need to add a separate entry. (This entry does not necessarily have to be done at the same time as the final pay.)

    1. From Payroll and Personnel > Payroll Processing > Input and Review Timesheets > Context Menu (right click) > Add Employment Termination Payment Entry  

    2. Complete the relevant information. The Payment Code selected should be as in accordance with the information provided on the ATO website.

Process the payment as per a normal timesheet

Continue as per your normal payroll processing.

You will be able to print the payment advice for the payment, just as you would print a payslip. (This uses the PPA form.)

You can also print a word document ETP form by going to Main Menu > Payroll and Personnel > End of Year Processing > Print PAYG  - ETP Payment Summary. (This uses the ETP form.)

If you would like to see a summary of the ETPs issued, go to Main Menu > Payroll and Personnel > End of Year Processing > Print PAYG  - ETP Reconciliation Report.  You will be able to select the current year or the previous year.

This will display a grid listing details of the payments.

Eligible Termination Payments and Single Touch Payroll (STP)

If you are using Single Touch Payroll, then the information for the Eligible Termination Payment will be sent to the ATO when you audit the pays and submit to the ATO, as per the standard payroll process.