Lump Sum Descriptions in your Payroll Software

Elite Payroll Software is designed with small business in mind.

The amount at Lump Sum A was paid:

 for unused long service leave that accrued after 15 August 1978 but before 18 August 1993; or

 for unused holiday pay and other leave related payments that accrued before 18 August 1993; or

 for unused long service leave, unused annual leave and other leave related payments that accrued after 16 August 1978, or unused holiday pay or related payments, where the amount was paid because the employee ceased employment, under an approved early retirement scheme, because of invalidity or because of bona fide redundancy.

All of this amount is taxable, but the maximum rate of tax is 30% plus the applicable Medicare Levy rate.

The amount at Lump Sum B was paid:

for unused long service leave which accrued before 16 August 1978. Only 5% of this amount is taxable.

The amount at Lump Sum C represents:

Eligible Termination Payments. If the employee is being made redundant then a portion of this amount is tax-free. This amount is reported on the ETP Payment Summary.

The amount at Lump Sum D represents:

a tax-free bona fide redundancy payment or approved early-retirement scheme payments.

The amount at Lump Sum E was paid:

for back payment of salary or wages which accrued more than 12 months ago. All of this amount is taxable, but an offset may be available.