You will receive this message when you choose Redundancy as the Termination Reason for an employee who has reached the age pension qualifying age. These employees cannot be paid a Genuine Redundancy as per the ATO. For more information on Redundancy and the Age Pension age, refer to the ATO link below:
For these employees, choose Non-Genuine Redundancy as the Termination Reason. If the termination payment includes ETPs that are 'excluded payments' and need to be coded as 'R', you can either:
Enter the value against Compensation in the ETP section of the Termination Transaction. This will mean that Term Compensation will appear in reports.
Enter the ETP using a Manual Calculation and select R as the ETP Summary Code. Using this method means that you need to manually calculate the Tax, and enter this value into both the ETP Tax field under the Termination Components and Tax (Incl Adjust).
For more information on ETPs, refer to the ATO link below: