Dealing with employees
When a member of your staff leaves your employment, you'll generally have to make some sort of final payment to them. Many of these payments are known as eligible termination payments (ETPs). Depending on what's included in the payments you make, you'll need to take out different amounts of tax.
You may also be generally required to make a bona fide redundancy payment. This is a payment made to an employee who is dismissed because the job they were doing is made redundant.
The Tax Office provides guidance on meeting your obligations to employees who stop working for you.
What to do...
- Read Tax Office's ETPs - a practical guide for employers in meeting your obligations to employees who stop working for you.
- Read about termination of employment on the Fair Work Online website.
- See our topic on ending employment.
This content is supplied to Flying Solo via business.gov.au,
the Australian Government's principal website for business information and resources.
