Set up Tax Free Periods for Terminated Employee Auto Payments (Australia)

(Australia only) Certain periods of time are exempt from taxation when you generate a payment for a terminated employee.

Adhering to the Australian Taxation Office's calculation rules, when calculating taxes, the system excludes any time periods the employee was on a form of leave without pay or experienced an interruption of earnings.

In order for the system to know those periods of time and properly calculate payments, you must enter those time periods on the Periods Without Pay tab in the PR Employees form. You can enter these records at any time prior to processing termination payments for an employee.

To set up tax-free periods for an employee:

  1. Open the PR Employees form and locate the employee record.
  2. Select the Periods Without Pay tab.
  3. In the Seq field, enter New, N, or + to create a new period record.
  4. In the First Date field, enter the starting date for the tax-free period.
  5. In the Last Date field, enter the ending date for the tax-free period.
  6. In the Memo field, you can optionally enter a description for the tax-free period.
  7. Save the record.
  8. Repeat steps 3 - 7 to add any additional tax-free periods.
When you process termination payments for this employee, the system excludes these time periods when calculating any associated taxes.