When you enter a Termination Transaction you will enter detailed ETP components (e.g. Time in Lieu, Genuine Redundancy, Gratuity, etc). These detailed components are used to tax the payment and allocate the value to the correct STP2 reporting group and subgroup. Then, for STP2 reporting purposes, the detailed components are rolled up into the Total ETP and Lump Sum D components.
Where the employee receives a Lump Sum D payment, any amount entered into the Genuine Redundancy that is over the employee's Lump Sum D threshold, is included in the ETP payment with ETP code R.
For a full list of all Termination components, see Termination Component Codes.
Note: If you use a Manual Calculation to pay or reverse termination components you will only enter the Total components (ETP or Lump Sum D).
The YTD STP2 Pay Event Insight included in Access Evo includes both the detailed and the total Termination components. The correct ETP and Lump Sum D values have been reported to the ATO via STP Reporting. The detailed termination components are also saved allowing you to report on them individually, i.e. total of In Lieu of Notice or total Unused Sick Leave. As both the detailed and total Termination components are visible in the YTD STP2 Pay Event Insight it can be misleading when you are reconciling the insight. To avoid this, you should look at either the detailed or total Termination components in order to balance.
Using an example from our training database, we entered $25,666.02 as Genuine Redundancy and $47,666.02 as Time in Lieu.
This resulted in the STP2 being reported for the employee as:
Lump Sum D - $25,052 (up to the Lump Sum D threshold)
ETP - Code R - $614.02 (amount over the Lump Sum D threshold)
ETP - Code O - $47,666.43
However, when we review this payment in the STP2 Insight we can see both the detailed and total Termination components. To balance the Insight to the Transaction, STP Pay Event, MicrOpay Reports or Transaction Insight use either the detailed components (Genuine Redundancy and Time in Lieu) or the total (Lump Sum D and Term ETP Taxable).
Some points to consider when reconciling this example:
Term Lump Sum D = Lump Sum D value from the transaction (this is the value up to the threshold)
Term Genuine Redundancy less the Lump Sum D = ETP - Code R from the transaction/reports
Term Lump Sum Payment - In Lieu of Notice = ETP Code O from the transaction/reports
Term ETP - Taxable (Post June 83) = ETP Code R + ETP Code O
