Employee Payment Instructions

Depending on the amount of the ETP, you might need to solicit payment instructions from the employee whom you are terminating. Payment instructions are used to notify the organization about how the employee wants to receive payment.

If the payment is less than the amount that is specified by the ATO, the organization is not required to solicit payment instructions from the employee. However, the organization can solicit this information and provide employees with an opportunity to decide how they want to receive their payment.

If the payment is over the amount that is specified by the ATO, you must solicit payment instructions from the employee, and you must also provide the employee with an explanation of the components of the ETP calculation. You can use the ETP Calculation Worksheet program (R75A0100) to create an ETP worksheet that the employee can use to review the details of the ETP.

When the employee gives you payment instructions, you might need to update the termination information that you initially entered into the system. Each time that you change an employee's termination information, you can create an updated ETP worksheet for the employee to review.