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Administrator Guide
Last Updated: 2025-09-19
Create Termination Payments (AUS)

Create Termination Payments (AUS)

Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
Set up the termination earnings and deductions so that they’re linked to the correct pay component groups. Workday uses the worker's TFN declaration to determine the correct tax rate to apply to termination payments.
  1. Access the
    Edit Earning
     task for each earning or deduction that represents ETP or ETP tax.
  2. On the
    Non-Effective Dated
     tab, select the pay component group that matches the earning or deduction.
    Pay Component Group
    Purpose
    AUS Genuine Redundancy and Early Retirement Scheme Payments
    For genuine redundancy and early retirement scheme payments that are to be treated as Lump Sum D if they are below the Lump Sum D limit. Otherwise to be taxed using the ETP cap.
    AUS ETP Excluded Payments (ETP Type R)
    For earnings that are to be treated as ETP excluded payments and reported to the ATO as ETP Type R payments. These payments are subject only to the ETP cap and taxed concessionally up to the cap.
    AUS ETP Non-Excluded Payments (ETP Type O)
    For earnings that are to be treated as ETP non-excluded payments and reported to the ATO as ETP Type O payments. These payments are subject to the lesser of the Whole of Income cap or the ETP cap, and are taxed concessionally up to the cap.
    AUS Taxable Unused Leave Payments at Termination
    For unused leave payment earnings that are taxed at marginal rates and reported to the ATO as Unused Leave Payments.
    AUS Normal Gross for Marginal Tax
    For unused leave payment earnings that are to be treated as normal gross when calculating the marginal tax.
    AUS Lump Sum A Taxable - Type R
    For earnings that are taxed and reported to the ATO as Lump Sum A - Type R.
    AUS Lump Sum A Taxable - Type T
    For earnings that are taxed and reported to the ATO as Lump Sum A - Type T.
    AUS Lump Sum B Taxable
    For earnings that are taxed and reported to the ATO as Lump Sum B.
    Don't map the termination payment earnings and deductions to the
    AUS PAYG Taxable Wages
     pay component group.
    If you need to manually override any amount, you can use the applicable pay component related calculations for ETP type R tax and ETP type O tax.
Create a memo earning to identify 5% of Lump Sum B payments to add to the
AUS Lump Sum A Taxable - Type R
 or
AUS Lump Sum A Taxable - Type T
 pay component groups, depending on the termination reason.
You can use the
View Payroll Tax/Allowance Data
 report to view tax data for termination payments.