Termination - Lump Sum D

Lump sum D represents the tax-free amount of only a genuine redundancy payment or approved early retirement scheme payment, up to the tax free limit, based on the payee’s complete years of service, for an employee up to their age-pension age.

This lump sum component of the redundancy is NOT the tax-free component of Employment Termination Payments (ETPs).

Lump Sum D is not an Employment Termination Payments (ETP).

Adding Lump Sum D Payment

Follow the next steps to create a lump sum D payment:

The termination flag must be set and a valid termination reason must be selected, you can find the termination options under the employee's payroll details.

  1. Access the ETP - Leave from the application toolbar
  2. Click Lump Sum D
  3. The Lump Sum Payment window appears
    • Employee select the employee "terminated employment"
    • Termination Date & Reason pre-filled based on the selected employee
    • Tax Free Amount enter the tax free amount
    • Payment Date select the date of payment
    • Click Save