Payments - Lump Sum E

Lump sum E represents the amount for back payment of remuneration that accrued, or was payable:

This means that an oversight or delay led to the payment not being paid in an earlier financial year (underpayment) and is only now being paid in the current financial year.

If and/or when a payment meets both criteria, payable more than 12 months prior and greater or equal $1,200 per ABN/Branch No./BMS Id or Software ID/Payroll Id, then the payment is no longer to be reported as it would ordinarily be, but instead: as Payment Type – Lump Sum Type-E. This re-allocation of Payment Types may occur at each pay event where the conditions are met or at finalisation

The lump sum E payment amounts to be reported per financial year in which the accrued payment was payable. This will eliminate the need for employers to issue employees with lump sum E letters at the end of financial year, as this data will be available on the ATO Online Income Statement but will NOT be pre-filled into the IITR.

Do I have to pay super on these payment types?

Yes, if the Lump Sum E payment is considered as ordinary time earnings payment, if not such as overtime, then super does not apply.

Can I salary sacrifice super out of these payment types?

Yes, the sacrifice is considered as Voluntary which means it has to be reported under the Employee's Salary Sacrifice and the Employer Reportable Super Contribution (RESC).

How do Lump Sum E payment get taxed?

Lump Sum E payments are taxed as per NAT 3348 Tax table for back payments, commissions, bonuses and similar payments - Method B(ii)

Adding a Lump Sum E Payment