Death Benefit (Tax Free)
May 23, 2023
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🎯 The reporting of payments for Death Benefit (Tax Free) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Death Benefit (Tax Free) continues to be reported under ETP Type Code = D or T.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Death Benefit (Tax Free) is applicable when the Payee ceases employment due to being Deceased and the Payee's Death Beneficiary (Trustee) and receives a payment per Table A: Withholding rates for ETPs regardless of the ETP Cap Amount.
Death Benefit (Tax Free) uses the $ (or % of Rate Per Hour) set within the Pay Rate and Leave Entitlements are not applicable. Payments with this pay type may be considered either Taxable or Non-Taxable, however, they are not Salary & Wages or Ordinary Time Earnings (OTE)
