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AU Payroll: ETPs - When is this not going to be a manual process?

Started by Anita Wildman in Payroll Feature Requests | Done!

Can Xero please advise when the "ETP" process will be incorporated into the software and not be a manual process? (I am rather new to xero, so am happy to corrected if it is already incorporated)

Processing ETPs is such a normal part of the payroll and it is a complete pain to process the ETP manually and then again at year end when doing PAYG payment summary reporting.

Xero, you pride your software on being able to lodge everything directly with the ATO etc. I assume this would be a quick process to address and a high priority?

I look forward to your reply.
Thank you.
Official Xero Reply
Hi everyone, you can now set up type 'O' and 'R' Employment Termination Payments for earnings in your Payroll settings, as well as set leave items as ETP pay items, per employee under the employee's Leave tab.

When processing final pay for an employee, Leave pay items set up as "Paid out on termination " will be automatically added to the final payslip. You'll also be able to add ETP items from the Earnings section in the payslip.

Xero will calculate the taxes at 32% flat rate for ETP earnings. You can also add manual tax adjustments (ETP type 'O' or 'R') as required from the tax section of the payslip.

If you've processed any ETP's in the financial year, payment summaries for these will be shown under the payment summary section.

Thanks all - Take a look at the help articles below for more detail, and let us know what you think! :)

- Create a pay item for an employment termination payment
- Set unused leave as paid out on termination
- Prepare and distribute employee payment summaries
- Process final pay for a normal termination

Kelly M (Community Manager)

Best Reply as chosen by Kelly M (Community Manager)
In full loop, I'm pleased to come back and let you know the ETP process in Xero has been updated. You can now process ETP's for type R & O's with your EMPDUPE/ PSAR filing to the ATO. Allowing you to in act this process quicker, and get on with the rest of your day :)

See our help article for more detail, or come on in to our specialists at Support if you have any questions.

Kelly M (Community Manager)