Death Benefit Time Off In Lieu (Tax Free)
May 23, 2023
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🎯 The reporting of payments for Death Benefit Time Off In Lieu (Tax Free) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Death Benefit Time Off In Lieu (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 Time Off In Lieu (Tax Free) is applicable when the Payee ceases employment due to being Deceased and the Payee's Death Beneficiary (Trustee) and receives a payment for unused Time Off In Lieu per Table A: Withholding rates for ETPs regardless of the ETP Cap Amount.
Death Benefit Time Off In Lieu (Tax Free) uses the Rate Per Hour set in the Payee Master File (100.00%) 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).
