How to complete PAYG payment summary – employment termination payment

Instructions for PAYG withholding payers
How to complete
the PAYG payment
summary – employment
termination payment
Instructions to help you complete PAYG payment summary
– employment termination payment (NAT 70868) for payments
made from 1 July 2012
WHEN TO USE THIS FORM
If you make an employment termination payment (ETP), you
need to ensure that you withhold the correct amount from
the payment and report this on the correct ETP payment
summary form.
Use this form if you make an ETP from 1 July 2012 to:
■■ an employee whose employment has been terminated
■■ a non-dependant because of an employee’s death
■■ a dependant because of an employee’s death if the taxable
component of the payment exceeds the ETP cap (the ETP
cap is $175,000 for the 2012–13 income year and $180,000
for the 2013–14 income year)
■■ a trustee of a deceased employee’s estate.
If more than one type of ETP is made, you will need to
complete a separate payment summary for each payment.
For more information, see ‘Employment termination
payment (ETP) codes’ on page 4.
If the ETP is for a payment made before 1 July 2012,
you must use the PAYG payment summary – employment
termination payment (NAT 70868-04.2008) form. You will
also need to refer to the earlier How to complete the PAYG
payment summary – employment termination payment
(NAT 70996-04.2011) instructions available on our website
at ato.gov.au
NAT 70996-08.2013
Do not use the PAYG payment summary – employment
termination payment form for amounts you have withheld from
any of the following payments:
■■ salary or wages paid to an employee, company director or
office holder
■■ under a labour hire arrangement or other specified payment
■■ under voluntary agreements to withhold
■■ for supplies where an Australian business number (ABN)
was not quoted
■■ superannuation lump sums
■■ super income streams
■■ personal services income attributed to an individual.
To obtain copies of the forms and instructions for any
of the above payments:
■■ visit ato.gov.au/paymentsummaries
■■ phone our publications ordering service on 1300 720 092
– you must quote your ABN to use this service.
HOW TO COMPLETE THE FORM
Payment summary for year ending 30 June
You must:
■■ write each letter in a separate box
■■ use a black pen
■■ use BLOCK LETTERS.
You must show the year as a four-digit figure. For example,
show the year ending 30 June 2014 as 2014 and not 14.
Amending a payment summary
You cannot change the information on a payment summary
after you have either:
PAYG payment summary■■–given it to the payee
Show all amounts in whole dollars – do not show cents.
■■ provided your PAYG withholding payment summary annual
For example, show an amount ofemployment
$122.76 as $122.termination payment
report to us.
708680612
When
you send termination
the paymentpayments
summarymade
to us from
as part
of your
s form for
employment
1 July
2012.
If you find a mistake with any of the amounts or ETP codes
pay as you go (PAYG) withholding payment summary annual
afterversion
giving the
payment
summary
to the payee or us, you must
or employment termination payments made prior to 1 July 2012, use the earlier
of this
form NAT
70868-04.2008.
report, send the ‘ATO original’. We cannot accept photocopies
complete a new payment summary, marking the amending a
sectionsor duplicates.
of this form must be completed. For help, refer to How to complete
the PAYG
payment
– employment
payment
summary
boxsummary
as shown.
ation payment form (NAT 70996).
You do not have to complete every field. For example, where an
amount has not been paid or withheld, leave those boxes blank.
Are you amending a payment summary you
have already sent? If so, place X in this box.
ent summary for year ending 30 June
on A: Payee details and payments
When you complete an amended payment summary you must
do all of the following:
■■ complete all payee, payment and payer information on each
amended payment summary
■■ send it to us
■■ give a copy to the payee.
surname or family name
given name(s)
residential address
You must show the payee and payer information as it was on
Postcode
the original paymentState/territory
summary. You must
send the ‘ATO original’
to the address listed in the PAYG payment summary statement
(NAT 3447).
town/locality
Day
Month
Year
If the payee or payer information was incorrect, do not prepare
a new payment summary. Advise the payee as soon as
possible. Document the correct details and keep them in your
files. There is no need to advise us of the corrected details.
.00
TOTAL TAX WITHHELD $
,
, or tax withheld
Where payment amounts
amounts have
changed, you may also need to complete an amended
PAYG payment summary statement (NAT 3447).
date of birth (if known)
e’s tax file number
Day
Month
Year
of payment
le component
$
,
,
X
.00
If the payee loses their payment summary, do not issue a new
one. $
Give them a photocopy of your own
. copy showing all the
Tax free component
, summary.00
details from the, lost payment
rough all the codes before selecting one that describes the type of payment. If more than one code applies to the payment, you will
complete a separate payment summary for each code.
enet ETP
DESCRIPTION
ETP made because of one of the following:
■ early retirement scheme
■ genuine redundancy
■ invalidity
■ compensation for
– personal injury
– unfair dismissal
– harassment
– discrimination
Other ETP not described by R, for example, golden
handshake, gratuity, payment in lieu of notice, payment for
unused2sick leave, payment for unused rostered days off
Multiple payments for same termination
CODE
DESCRIPTION
S
You made a code R payment to your employee in a
previous income year for the same termination
P
You made a code O payment to your employee in a
previous income year for the same termination
ATO original
yment termination payment (ETP) code
Death benet ETP
CODE
DESCRIPTION
D
Death benet ETP paid to a dependant of the deceased
B
Death benet ETP paid to a non-dependant of the
complete
the PAYG payment
deceased andHow
youtomade
a termination
paymentsummary – employment termination payment
to the non-dependant in a previous income year
for the same termination
For employment termination payments made prior to 1 July 2012, us
Both sections of this form must be completed. For help, refer to How
termination payment form (NAT 70996).
Payment summary for year ending 30 June
Section A: Payee details and payments
Payee’s surname or family name
Payee’s given name(s)
Payee’s residential address
Suburb/town/locality
PAYG payment summary –
employment termination
payment
SECTION A: PAYEE DETAILS AND PAYMENTS
Payee’s tax file
number Day
Month
Year
708680612
You
must
show
the
tax file number (TFN) the
payee quoted in
Payee’s
date
of birth
(if known)
Use this form for employment termination payments made from 1 July
2012.
this field. For example, show a nine-digit TFN as:
If the payment is due to the death of an employee,
For employment
termination
the payee
is one of the
following:payments made prior to 1 July 2012, use the earlier version of this form NAT 70868-04.2008.
Payee’s
tax file number
TOT
9payment
8 7 summary
6 5 4
3 2 1
■
■
trustee
for
the
deceased
estatePAYG
Both sections of this form employee’s
must be completed.
For help,
refer to How
to complete
– employment
payment
summary
– the PAYG
■
■
non-dependant
of
the
deceased
employee
termination payment form (NAT 70996).
employment termination paymentDay
Month
Year
■■ dependant of the deceased employee.
Are this
you amending
a payment
summary
you code
708680612
To help us process
form, you must
substitute
the TFN
Date of payment
Payment summary for year ending 30 June
have already
sent?
Ifif:
so, place X in this box.
with
one
of
the
codes
listed
below
Use
this
form
for
employment
termination
payments
made
from
1
July
2012.
If you are the trustee for the deceased employee’s estate,
■■ a new payee has not made a TFN declaration, but 28 days
include
your
details details
at
payee’s
surname
or made
family prior
name.
Section
A: Payee
and
payments
For employment
termination
payments
to 1 July 2012,
use the
earlier version of this form NAT 70868-04.2008.
.00 Tax free c
Taxable
component
have not
passed, use$111 111 111
,
,
Payee’s
surname
or
family
name
Both sections of this form must be completed. For help, refer to■■How
to complete
the
PAYG payment
summary
– employment
the payee
is under
18 years
of age and
earns $350
or less
termination payment
form (NAT 70996).
payment (ETP) code
ment summary
–
PAYG paymentEmployment
summary
–
a week,
use termination
333 333 333
PAYG
payment
Payee’s
name
Payee’s given
name(s)
Are
youbefore
amending
a one
payment
summary
youof payment.su
codes
selecting
that
describes
the type
If m
■Read
■ the through
payee all
is the
an
Australian
Government
pensioner,
use
ent termination
payment
employment
termination
payment
Payment
year
ending
30 June
Separate
thesummary
surname orfor
family
name
from
the
given
name
need
to
complete
a
separate
payment
summary
for
each
code.
have
already
sent?
If
so,
place
X
in
this
box.
employment
term
708680612
708680612
444 444 444
(or names)
and print in the boxes. For example, show Jane
Payee’s
bene
m 1 JulyUse
2012.
this residential
form for address
employment termination payments made from 1 July
■■Life
the2012.
payeet ETP
chose not to quote a TFN and has not claimed Multiple pa
Section
A: Payee
details and payments
Mary
Covers
as:
Use this form for employment termination payments made from 1 July 2
an exemption
from
quoting
a TFN
or NAT
does70868-04.2008.
not fit into any
CODE DE
CODE
DESCRIPTION
uly 2012,Payee’s
useFor employment
the
earlierorversion
of this form
payments
NAT 70868-04.2008.
made prior to 1 July 2012, use the earlier
version
of this
form
surname
familytermination
name
For employment
termination
payments
made
prior
to
1
July
of the
above
categories,
use
000 000 000.
Suburb/town/locality
State/territory
Postcode
S2012,
Yo
R
ETP made because of one of the following:
payment
summary
– the PAYG
efer to How
Both
complete
of
theS
this
PAYG
form
payment
must be
summary
completed.
–PAYG
employment
For help,
refer to How
to ■complete
payment summary – employment
C toOsections
V E R
early retirement
scheme
pre
Both
sections
of
this
form
must
be
completed.
For
help,
refer
to
How
■ genuine redundancy
termination
Payee’s given payment
name(s) form (NAT 70996).
employment termination
payment
P
Yo
termination
payment
form
(NAT
70996).
Total
tax
withheld
■ invalidity
Day
Month
708680612
pre
Are
you
amending
a payment
summary Year
you
Arewithheld
youforamending
a dollars.
payment
summary you
■total
compensation
J
A
N
E
M
A
R
Y
Show
the
tax
in
whole
Payment
summary
forsent?
year
ending
30
June
– personal
injury
have
already
If
so,
place
X
in
this
box.
have
already
sent?
If
so,
place
X
in
this
box.
Payee’s
date
of
birth
(if
known)
Use
this
form
for
employment
termination
payments
made
from
1
July
2012.
Payment
summary
for
year
ending
30
June
Payee’s residential address
Death bene
– unfair
For example,
showdismissal
$12,672.70 as:
– earlier
harassment
For employment
termination
payments
made
prior
to
1
July
2012,
use
the
version
of
this
form
NAT
70868-04.2008.
CODE DE
Section A: Payee details and payments
Payee’s residential address
discrimination
Section A:– Payee
details and payments
Suburb/town/locality
State/territory
Postcode
Both
offamily
this
form
must be
completed.
to Other
complete
the PAYG
summary
–6
employment
Payee’s
surname
or
name
This
is sections
the
address
for the
recipient
of the
payment.For
Youhelp,
mustrefer to How
Payee’s
tax file
number
$ payment
TOTAL
TAX WITHHELD
example,
1 2golden
7 2 .00 D De
O surname
ETP
not described
by R, for
Payee’s
or
family
name
,
,
termination
payment
form
(NAT
70996).
handshake, gratuity, payment in lieu of notice, payment for
B
De
show
the street
number
and
name,
suburb/town/locality, state
unused sick leave, payment for unused rostered days off
de
or
territory
and
postcode separately
inMonth
the
Day
Year
Are you amending a payment summary you
Payee’s
given
name(s)
Day
Monthboxes provided.
Year
to Payment summary for year ending 30 June
Payee’s given name(s)
have
already
sent?
If
so,
place
X
in
this
box.
for
Date
of
payment
Payee’s
date
of show
birth (ifthe
known)
For
example,
address 2 Bell St, Ablem WA 6999 as:
For more information about withholding from
N
De
Payee’s
residential
address
Section
A: Payee
details and payments
de
ETPs,residential
refer to Tax
table for employment termination
Payee’s
address
.
.
00 Tax free
Taxable
component $
$S T R
2
surname
Bcomponent
E L
L name
Payee’s
or family
, website at00
, E E T,
,
payments (NAT 70980) available
on our
. T De
Payee’s tax file number
Suburb/town/locality
State/territory
Postcode
State/territory
TOTAL TAX WITHHELD $
ato.gov.au/taxtables
, Postcode 00
,
Suburb/town/locality
Employment
termination payment
A
B L E M
WA (ETP) code6 9 9 9
Payer’s Aust
Section B: Payer details
ATO original
2 5 0 9 2 0 1 2
ATO original ATO original
ATO original
0 1 0 5 1 9 6 3
NAT 70868-06.2012
ATO original
Payee’s given name(s)
Day
Year
Read through all the codes before
selectingMonth
one that describes
the type of payment. If more than one code applies to the payment, you will
You must also complete this section
Day summary
Month
Year
need
to
complete
a
separate
payment
for
each
code.
Date of payment
Day
Month
Year
Payee’s
residential
address
Date
of
payment
Payee’s
date
of
birth
(if
known)
Payer’s
name
(use
the
same
name that appears on your activity statement)
Multiple payments for same
termination
Life bene
t ETPof birth
Payee’s
date
Payee’sthe
date
of birth
known)the payment to the payee. To use this
Show
date
you(ifmade
Provide
information$if you have it. Leave blank if the .00 CODE
.2012.
DESCRIPTION
CODEthis
DESCRIPTION
00
Taxable
component
Tax
free
component
$
form,
the
date
of
payment
must
on or ,after 1 JulyPostcode
,
,
, beState/territory
Suburb/town/locality
payment
is a death benefit termination
payment.
You made a code R payment to your employee in a
R
ETP made because of one of the following:
.00 SUse
.00
the format
DDMMYYYY.
Payee’s
tax
fileretirement
number$
$ same termination
TOTAL
TOTAL
TAX
WITHHELD
■ WITHHELD
early
scheme ,
previous
income
year for the
,
,
,
Use
theTAX
format
DDMMYYYY,
for example:
Payee’s tax file number
Employment
termination
payment
(ETP) code
TO
■ genuine
redundancy
PFor example,
You made ashow
code Othe
payment
to your
employee
in a
Day
Month
Year
payment
date
of 25 September
2012 as:
■ invalidity
Read through
all the codes before
selecting
one
that
describes
the
type
of
payment.
If
more
than
one
code
applies
to
the
payment,
you
will
Month
Year
previous income year for the same termination
■ compensation for Day
DECLARATION
Day
Month
Year
need to complete
a separate
payment summary for each code.
Payee’s
date of– birth
(if known)
personal
injury
Date of payment
Death
bene
tthat
ETPthe information given on this form is complete and correct.
I
declare
–
unfair
dismissal
Datepayments
of payment
Multiple
for same termination
Life benet ETP
– harassment
Signature
of authorised person
CODE
DESCRIPTION
– discrimination
CODE
DESCRIPTION
CODE DESCRIPTION
.00 .00 Tax
.00 .
Tax free
Taxable
component
component
component
$number
$ ,
$ to a dependant
D free
Death
bene
ETP paid
of the,deceased
.00 00Tax free
,example,
, golden
, theforfollowing:
Payee’s
tax
file
TOTAL
TAXatWITHHELD
component
$ $,to your
Other
ETP
not described
S Taxable
You made
code R payment
employee
in a ,
RO ETP
made
because
of oneby
ofR,
,
,
,
gratuity,
payment in lieu of notice, payment for
B
Death
bene
t ETP paid
a non-dependant
of the
■ handshake,
early retirement
scheme
previous
income
yeartofor
the same termination
sick
leave, payment
for unused
off
deceased and you made a termination payment
■ unused
genuine
redundancy
Employment
termination
payment
(ETP)rostered
code days
Day
Month
Year
P Employment
You made a termination
code O payment
to your
employee
in a
to the non-dependant
in a previous
income
yearcode
payment
(ETP)
■ invalidity
of payment.
Read
If more
through
all
one
thecode
codes
applies
before
the payment,
one that
you describes
will
the type of payment.for the same
If more than
one
code
the payment,
you will
previous
income
year applies
for the to
same
termination
termination
Date
of than
payment
■ compensation
for to selecting
Read
through
all
the
codes
before
selecting
one
that
describes the type of payment.
need to complete
a
separate
payment
summary
for
each
code.
– personal injury
N need
Death
paid to payment
a non-dependant
theeach code.
Death
bene
t bene
ETP t ETP
to complete
a separate
summaryoffor
– unfair dismissal
Multiple Life
payments
same termination
Multipledeceased
payments for same termination
benet–for
ETP
.00 CODE
.00
harassment
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$
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n70868-06-2012_js23887.indd
,
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,
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–
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benet ETP paid to a trustee
estate
CODE CODE
DESCRIPTION
CODE DESCRIPTION
DESCRIPTION
D CODE
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benet ETP paid to a dependant of the deceased
CODE
O
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ETPRnot
described
byofR,
forfollowing:
example,
S Employment
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a code
payment
your
employee
in code
a golden
S
You made a code R payment to your employee in a
R made
ETP
made
because
ofto
one
the
termination
payment
(ETP)
gratuity,
payment
in lieu of notice, payment for
Payer’s
business
number
or
Section
B:
Payer
details
B Australian
bene
t ETP
paid for
to(ABN)
athe
non-dependant
ofpayer
the number (WPN)
RDeath
ETP
made
because
of
one
ofwithholding
thetermination
following:
S
■income
early
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previoushandshake,
year
for scheme
the
same termination
previous
income
year
same
unused
sick
leave,before
payment
for unused
rostered
daysthe
off type of payment. deceased
and
youcode
made
a termination
paymentyouBranch
■ than
early
retirement
scheme
Read through
all the
codes
selecting
one that
describes
If more
one
applies
to the payment,
will
■ genuine
redundancy
You
must
also
complete
this
section
to the non-dependant
in a previous
year
P need
You to
made
codea O
payment
to yoursummary
employeefor
in each
a
P
You made
a coderedundancy
O payment
to yourincome
employee
in number
a
■ genuine
complete
separate
payment
code.
■ ainvalidity
P
for the same
termination
previous■income
year forfor
the same termination
previous
income
year for the same termination
■ invalidity
compensation
Payer’s
name
(use
the
same
name
that
appears
on
your
activity
statement)
Multiple payments
for same termination
Life benet–ETP
■ compensation
for
personal injury
N bene
Death
bene
t ETP paid
to a non-dependant of the
Death How
bene
ETP – unfair
t ETP
to tcomplete
the PAYG
payment summary – employment termination paymentDeath
3
– personal
injury
dismissal
Death be
CODE deceased
DESCRIPTION
CODE DESCRIPTION
– unfair dismissal
–
harassment
CODE DESCRIPTION
CODE DESCRIPTION
– harassment
–
discrimination
CODE
T
Death
bene
t ETP R
paid
to a trustee
ofemployee
the deceased
S
You made
a code
payment
to your
in a estate
R
ETP made because of one of the following:
– discrimination
D
Death bene
t ETP
paid to ascheme
dependant of the deceased
D
Death
bene
t ETP year
paid for
to athe
dependant
of the deceased
■ early
retirement
previous
income
same termination
Section A: Payee details and payments PAYG
paymentUse
summary
–
this form for employment termination payments made from 1 July 2
employment termination payment
Payee’s surname or family name
For employment termination payments708680612
made prior to 1 July 2012,
Use this form for employment termination payments made from 1 July
2012.
Both sections of this form must be completed. For help, refer to How
Payee’s given name(s)
termination
form of
(NAT
For employment termination payments made prior to 1 July 2012,
use the payment
earlier version
this70996).
form NAT 70868-04.2008.
Both sections
this form must be completed. For help, refer toPayment
How to complete
the PAYG
payment
summary
– employment
summary
for year
ending
30 June
Payee’s
residentialof
address
termination payment form (NAT 70996).
Suburb/town/locality
Payment summary
Section A: Payee
details
andState/territory
payments
Are you
amending
a payment summary
you
Postcode
for year ending 30 June
Section A: Payee details Day
and payments
Month
Payee’s surname orhave
familyalready
name sent? If so, place X in this box.
Year
Payee’s given name(s)
Payee’s surname or family name
Payee’s date of birth (if known)
Payee’s residential address
Payee’s given name(s)
$ payment
TOTAL TAX WITHHELD
Employment
termination
, (ETP) ,codes
Suburb/town/locality
Payee’s component
tax file number
Taxable
.00
ATO original
Payee’s residential address
Include
the total of the payment, less the tax free component.
Read through all the information below before selecting the
Day
Year
PAYG payment
summary
– the type of employment termination
Show the taxable component
in wholeMonth
dollars.
code that
best describes
Date of payment
Suburb/town/locality
State/territory
Postcode
employment
termination
Day
Month
Year
payment
being made.payment
For example, show a taxable component of $34,221.89 as:
708680612
payment
summary –
Payee’s date of birth (if known)
Use this form for employment termination payments.00
made from 1 July 2012.
.
component
Tax
free component $
ymentTaxable
termination
payment
$ Day , 3
4
2
2
1
Month ,
Year
, payment, 00
If more than one code ,applies to the
you
708680612
For employment termination payments made prior to 1 July 2012, use the earlier version of this form NAT 70868-04.2008.
will
need
to
complete
a
separate
payment
summary
for
Payee’s
date
of
birth
(if
known)
ade fromFor
1 July
2012. termination
file number
death
ETPs
to a dependant
of the deceased,
Employment
(ETP)
code
Bothbenefit
sections
of paid
thispayment
form
must
be completed.
For help, referPayee’s
to Howtax
to complete
the PAYG payment summary – employment TO
each code.
include
amount
over
the
ETPform
capthat
in the
taxable
to 1 Julyonly
2012,
use the
earlier
of(NAT
this
NAT
70868-04.2008.
termination
payment
form
70996).
Read
through
all the
codesversion
before
selecting
one
describes
the type of payment. If more than one code applies to the payment, you will
Day
Month
Year
component.
Thea ETP
cappayment
is $175,000
for for
theeach
2012–13
need to complete
separate
summary
code. income
Are you$amending a payment summary.you
help, refer Payee’s
to How to
the PAYG payment summary – employment TOTAL TAX WITHHELD
00
taxcomplete
file
number
year.
The
ETP
cap
is
$180,000
for
the
2013–14
income
year.
Payment
summary
for
year
ending
30
June
,
,
Date
ofpayment
payment
Is
this
a life
benefit
have
alreadyETP?
sent? If so, place X in this box.
Multiple
payments
for same
termination
Life benet ETP
A life benefit ETP is a lump sum payment made to a living
For
example,
show the
component
of a death
CODE
DESCRIPTION
Day
Month
Yearbenefit
Are taxable
you
amending
a payments
payment
summary
you CODE DESCRIPTION
Section
A: Payee
details
and
employeecomponent
in consequence
employment being .00
employment
termination
payment
of
$200,000
paid
on
Tax free
$ of their
have already
sent?
If so, place X in this box.
Date
S Taxable
You made a code R payment
to your
employee ,in a
R of payment
ETP made because
of one of
the following:
,
terminated.
Where
no
payment
has
made to your
Payee’s
surname
or
family
name
25 September
to a scheme
dependant as:
■ early2012
retirement
previous income year for the same been
termination
employee in a previous income year for the same termination,
■ genuine redundancy
Employment
(ETP)
code
Pthen
made a termination
code Ocode
payment
to code
your employee
in a
.00 Tax
.00 best
■
invalidity
complete
either
Rpayment
or
O,
whichever
code
Taxable
component
freeYou
component
$
2
5
0
0
0
Payee’s
given name(s)for
previous
income $
year for the
same termination
,
,
,
,selecting
■ compensation
Read through
allpayment
the codes being
before made.
one that describes the type of payment.
describes
the
– personal injury
ATO original
need
to complete
Death
bene
t ETP a separate payment summary for each code.
– unfair
dismissal payment (ETP) code
Employment
termination
Payee’s– residential
address
harassment
benet ETP
CODELifeDESCRIPTION
– alldiscrimination
Read through
the
codes
before selecting
that
describes
the type of payment. If more than one code applies to the payment, you will
$25,000
is the
amount
over theone
ETP
cap
of $175,000
CODE
DESCRIPTION
D
Death
benet ETP paid to a dependant of the deceased
need
to complete
a separate
payment
for each code.
forO the
2012–13
income
year.by summary
Other ETP not
described
R, for example, golden
Suburb/town/locality
State/territory
Multiple
CODE
Postcode
S
handshake,
gratuity, payment in lieu of notice, payment for
RDeath
ETP
made
because
one of the following:
B
bene
t ETP
paid
to of
a non-dependant
of the
Multiple
payments
for
same
termination
Life bene
t ETP
unused sick leave, payment for unused rostered days off
■ early
deceased
andretirement
you madescheme
a termination payment
CODE to the non-dependant
DESCRIPTION
CODE DESCRIPTION
■ genuine redundancy
in a previous income year
State/territory
Postcode
P
■ invalidity
for the same
termination
Day
Month
Year
Tax-free
component
S
You made
a
code
R
payment
to your employee in a
R
ETP
made because of one of the following:
■ compensation for
■ early
previous
for
same termination
Payee’s
dateretirement
of birth (if scheme
known)
N
Death
bene
t ETP year
paid
to athe
non-dependant
of the
– income
personal
injury
Death be
■ genuine redundancy
deceased
–
unfair
dismissal
r
P
You
made
a
code
O
payment
to
your
employee
in a
■
invalidity
You do not have to complete this field.
–
harassment
CODE
previous
income
same
T
Death
bene
t ETP year
paid for
to athe
trustee
of termination
the deceased estate
■ compensation for
– discrimination
– personal injury
.D00
Death
bene
t
ETP
Payee’s
tax dismissal
file number
$ for example,
TAXnot
WITHHELD
unfair
O TOTAL
Other
ETP
described
golden
, (WPN)
, payer
Payer’s Australian
business
number
(ABN)byorR,
withholding
number
Section
B:–– component
Payer
details
The
tax-free
consists of the:
harassment
handshake,
gratuity,
payment
in
lieu
of
notice,
payment
for
B
CODE DESCRIPTION
Branch
– discrimination
unused sick leave, payment for unused rostered
days off
Month
■■ pre-July 1983 segment
.00
must also
this sectionYear
number
$Daycomplete
TOTAL TAXYou
WITHHELD
D
Death
bene
t
ETP
paid
to
a
dependant
of
the
deceased
,
O Date
Other
ETP not described by R, for example,
golden,
■■ invalidity
segment.
of(use
payment
Payer’s
name
the gratuity,
same name
that appears
your activity
statement)
handshake,
payment
in lieu ofon
notice,
payment
for
B
Death benet ETP paid to a non-dependant of the
Is this
payment
part
of a
paymentpayment
made in an earlier
sick
leave, payment
for unused
rostered days off
deceased
and you
made
a termination
N
Show theunused
tax-free
component
in whole
dollars.
to the non-dependant
in
a
previous
income
year
income
year
for
the
same
termination?
.
.00
00
Taxable component $
Tax
free
component
$
termination
,
, in an
, of $6,594.55
For example, show a tax-free component
as:
If thefor the same
life benefit ETP
is related to a, payment made
T
Nearlier
Death
beneyear
t ETPfor
paid
to same
a non-dependant
of the
income
the
termination
of employment,
.00 Tax free
.
Employment
termination
payment
(ETP)
code
00
component $
deceased
then
complete
either details
code S or code P, whichever code best Payer’s Au
,
,
Section
B: Payer
Read through all the codes before selecting one that describes the type T
ofdescribes
payment.
more
onebeing
code
applies
thedeceased
payment, estate
you will
the
payment
made.
Death Ifbene
t than
ETP paid
to a trustee
oftothe
DECLARATION
need to complete a separate payment summary for each code.
You must also complete this section
I declare that the information given on this form is complete and correct.
Payer’s
Australian
business
number
(ABN)
or appears
withholding
payeractivity
number
(WPN)
Multiple
payments
same
termination
bene
t ETP
Section
B:
Payer
details
Payer’s
name
(use thefor
same
name
that
on your
statement)
Signature
authorised
person
e type of payment.
Ifof
more
than
one
codethe
applies
to thecomponent,
payment, you will
Life
For
help
calculating
tax-free
refer to
Branch
CODE DESCRIPTION
CODE DESCRIPTION
our Employment
termination
payment
calculator
available
You
must also
complete
this section
number
Date
on ourpayments
website
at
ato.gov.au
Multiple
for
same
termination
S
You made a code
to your employee
R (use
ETP
of one
of theonfollowing:
DayR payment
Month
Year in a
Payer’s name
themade
samebecause
name that
appears
your activity statement)
■ early retirement scheme
previous income year for the same termination
CODE DESCRIPTION
■ genuine redundancy
P
You made a code O payment to your employee in a
■ invalidity
S
You made
a code R payment to your employee in a
previous income year for the same termination
■ income
compensation
forthe same termination
previous
year for
DECLARATION
– personal injury
Death benet ETP
dismissal
P
You made–a unfair
code O
payment to your employee in a
I declare that the information given on this form is complete and correct.
– harassment
previous1income
year for the same termination
n70868-06-2012_js23887.indd
22/06/12 4:36 P
CODE of
DESCRIPTION
Signature
authorised person
– discrimination
DECLARATION
Death
benet ETP
D
Death benet ETP paid to a dependant of the deceased
O theOther
ETP not
described
R, for
example,and
golden
I declare that
information
given
on thisby
form
is complete
correct.
CODE DESCRIPTION
handshake, gratuity, payment in lieu of notice, payment for
B
Death benet ETP paid to a non-dependant of the
Signature of authorised
unused person
sick leave, payment for unused rostered days off
deceased and you made a termination payment
D
Death benet ETP paid to a dependant of the deceased
to the non-dependant in a previous income year
for the sameDate
termination
for
B
Death benet ETP paid to a non-dependant of the
Day
Month
Year
ff
deceased and you made a termination payment
N
Death benet ETP paid to a non-dependant of the
to the non-dependant in a previous income year
deceased
for the same termination
n70868-06-2012_js23887.indd
1
T
Death bene
t ETP paid to a trustee of the deceased estate
N
Death benet ETP paid to a non-dependant of the
deceased
4
How to complete the PAYG payment summary – employment termination payment
Payer’s Australian business number (ABN) or withholding payer number (WPN)
Section
B: Payer
details
T
Death bene
t ETP paid to a trustee of the deceased estate
n70868-06-2012_js23887.indd
1
22/06/12 4:36 P
Branch
You must also complete this section
number
ATO original
ATO original
NAT 70868-06.2012
NAT 70868-06.2012
NAT 70868-06.2012
6 5 9 4
Payee’s date of birth (if known)
Payee’s tax file number
TOTAL TAX WITHHELD
Day
Month
$
.00
,
,
Year
Date of payment
Taxable component
$
,
,
.00
Tax free component
$
,
.00
,
Employment termination payment (ETP) code
Multiple payments for same termination
Life benet ETP
CODE
DESCRIPTION
R description
ETP madeshown
becauseabove
of one that
of theisfollowing:
The
currently on the
■ early retirement scheme
paper ETP payment
■ genuinesummary
redundancyfor ETP codes S and P
■ invalidity
has changed.
Until the paper ETP payment summary is
compensation for
updated, use■ the
following
description for codes S and P
– personal
injury
when completing
yourdismissal
employee’s payment summary.
– unfair
– harassment
– discrimination
Multiple payments for same termination
O
Code
ATO original
Read through all the codes before selecting one that describes the type of payment. If more than one code applies to the payment, you will
need to complete a separate payment summary for each code.
Other ETP not described by R, for example, golden
handshake,
gratuity, payment in lieu of notice, payment for
Description
unused sick leave, payment for unused rostered days off
This is a code R payment and you made one
of the following payments to your employee
in a previous income year for the same
termination:
■■ a code R payment
■■ a code O payment
Section B: Payer details
■■ a transitional termination payment.
DESCRIPTION
IsCODE
this payment
a death benefit ETP?
S are You
madethe
a code
to your
employee
in a
If you
paying
ETPRtopayment
a person
because
of another
previous income year for the same termination
person’s death,
select either codes D, B, N or T, whichever
made a code
O paymentbeing
to yourmade.
employee in a
codeP bestYou
describes
the payment
previous income year for the same termination
Death benet ETP
CODE
DESCRIPTION
D
Death benet ETP paid to a dependant of the deceased
B
Death benet ETP paid to a non-dependant of the
deceased and you made a termination payment
to the non-dependant in a previous income year
for the same termination
N
Death benet ETP paid to a non-dependant of the
deceased
S
su
employment
term
Payer’s Australian business number (ABN) or withholding payer number (WPN)
T
Death benet ETP paid to a trustee of the deceased
PAYGestate
payment
Type of death benefit
Branch
AUse
death
(code
D) is anypayments
of the following:
thisbenefits
form fordependant
employment
termination
made from 1 July 2
number
P
This is a code O payment and you made one
■■ the deceased person’s spouse or de facto spouse
Payer’s name (use the same name that appears on your activity statement)
For employment termination payments made prior to 1 July 2012,
of the following payments to your employee
■■ the deceased person’s former spouse or former
in a previous income year for the same
Both
sections of this form must be completed. For help, refer to How
de facto spouse
termination:
termination
payment
formchild
(NATaged
70996).
■■ the deceased
person’s
less than 18
■■ a code R payment
■■ any other person who was a dependant of the deceased
Payment summary for year ending 30 June
■■ a code O payment
just before they died
■■ a transitional termination payment.
DECLARATION
■■ any other person the deceased had an interdependency
Section A: Payee details and payments
I declare that the information given on this form is complete and correct.
relationship with just before they died.
NAT 70868-06.2012
You must also complete this section
Signature of authorised person
Transitional termination payments were certain ETPs
paid to an employee under an employment contract entered
into before 10 May 2006. They were taxed concessionally
if paid before 1 July 2012. For more information about
transitional ETPs, refer to Transitional termination payments
available on our website at ato.gov.au
n70868-06-2012_js23887.indd 1
For example, Joe’s employment was terminated on
30 April 2013 and he is entitled to a $200,000 ETP. The ETP
was made under an early retirement scheme. On 1 May 2013
(2012–13 income year) Joe’s former employer paid $150,000
of his entitlement. On 31 July 2013 (2013–14 income year)
Joe receives the remaining $50,000 of his entitlement. His
former employer completes the PAYG payment summary
– employment termination payment (from 1 July 2012)
(NAT 70868) for the 2013–14 income year for the remaining
$50,000 paid in that year. They select code S as they had made
a code R type payment to the employee in a previous income
year for the same termination.
Payee’s surname or family name
Spouse of the deceased includes all of the following:
Date
■Payee’s
■ another
person
(whether
of the same sex or opposite sex)
given
name(s)
Month
with whom the deceased Day
was in a relationship
thatYearwas
registered under a law of a prescribed state or territory
Payee’s residential address
■■ another person (whether of the same sex or opposite sex)
who lived with the deceased on a genuine domestic basis
Suburb/town/locality
in a relationship as a couple.
22/06/12
Child of the deceased includes all of the following:
Monthchild of theYear
■■ an adopted child, stepchild Day
or ex-nuptial
deceased
Payee’s
date of birth (if known)
■■ a child of the deceased’s spouse
■■ someone who is a child of the deceased within the meaning
Law
Act 1975 (for example, a child who is
of the Family
Payee’s
tax file
number
considered to be a child of a person under a state or territory
court order giving effect toDay
a surrogacy
Monthagreement).
Year
TO
ofbenefits
payment
ADate
death
non-dependant is any person who does not fall
into one of the categories of dependant listed above.
.00N.
component
$ to a non-dependant,
IfTaxable
the payment
was made
, select code
,
Employment termination payment (ETP) code
Tax free
N
Read through all the codes before selecting one that describes the type of payment.
need to complete a separate payment summary for each code.
Life benet ETP
Multiple
CODE
CODE
R
How to complete the PAYG payment summary – employment termination payment
DESCRIPTION
ETP made because of one of the following:
■ early retirement scheme
■ genuine redundancy
■ invalidity
■ compensation for
– personal injury
– unfair dismissal
S
5
P
Death be
ee’s tax file number
TOTAL TAX WITHHELD
$
Payment summary for year ending 30 June
Day
ear
Month
Year
00
Are you, amending,a payment summary you
have already sent? If so, place X in this box.
of payment
Section A: Payee details and payments
$
.00
,
,
Payee’sTOTAL
given name(s)
TAX WITHHELD $
oyment termination payment (ETP) code
Tax free component
.00
,
,
$
.00
,
,
through all Payee’s
the codes
before selecting
residential
address one that describes the type of payment. If more than one code applies to the payment, you will
o complete a separate payment summary for each code.
benet ETP
Suburb/town/locality
E .00
DESCRIPTION
Tax free component
Multiple payments for same termination
$
,
,
CODE
ATO original
Payee’s surname or family name
ble component
State/territory
.DESCRIPTION
00
Postcode
ATO original
ETP made because of one of the following:
S
You made a code R payment to your employee in a
Day
Month
Year previous income year for the same termination
■ early retirement scheme
■ genuine redundancy
Payee’s date of birth (if known)
■ invalidity
he type
of payment. If more than one code applies to the payment, you P
will You made a code O payment to your employee in a
previous income year for the same termination
■ compensation for
– personal injury
Death
bene
t ETP
AFTER YOU COMPLETE THIS FORM
– unfair
dismissal
Multiple
payments for same termination
.00
– harassment
PAYG payment
summary$– employment termination payment
Payee’s
tax
file
number
TOTAL
TAX WITHHELD
You
do
not
have
to
withhold
an
amount
from
a
CODE
DESCRIPTION
,
,
CODE DESCRIPTION
– discrimination
(NAT 70868)
is self-duplicating and includes copies for:
death benefit termination payment paid to the trustee
of benet ETP
Death
paid to a dependant of the deceased
You madebya R,
code
R
payment
to your
employee in aD
Other ETP
not described
for
example,
golden
Day
Month
Year
■
■
us
a Sdeceased
estate.
However,
you
must
issue
a
payment
previous
income
year
for thepayment
same termination
handshake, gratuity,
payment
in lieu
of notice,
for
B
Death benet ETP paid to a non-dependant of the
summary
to the trustee
forrostered
the taxable
Date
of payment
■ the
payee
unused
sick leave,
payment
for unused
days offcomponent and
deceased and ■
you
made
a termination payment
P
You made a code O payment to your employee in a
in a previous income year
includeprevious
the payment
parttermination
of your PAYG to the non-dependant
incomesummary
year for theas
same
■■ the payer.
for the same termination
withholding
payment$summary annual report.
.00
.00
Taxable
component
Tax free
component
$
Death bene
t ETP
,
,
,
Youpaid
must:
N
Death benet ETP
to a non-dependant of ,the
deceased
CODE DESCRIPTION
■■ give the payee a copy of this payment summary within
Employment
termination payment (ETP) code T
Death benet ETP14 days
paid to a of
trustee
of the deceased
estate
the payment
being
made
D
Death benet ETP paid to a dependant of the deceased
CODE ■■ DESCRIPTION
CODE DESCRIPTION
retain the Payer copy and keep this for five years.
s name (use
same
name
that
on
activity
statement)
Death
bene
tappears
ETP
paid
toyour
a non-dependant
of the Show your
Asthe
aN payer,
you
must
have
either
an ABN
or WPN.
deceased
S
You made a code R payment to your employee in a
ETP made
because
of on
oneyour
of theactivity
following:
ABNR or WPN
as
it
appears
statement.
■ early retirement scheme
previous income year for the same termination
T
Death
benet ETP paid to a trustee of the deceased estate
■ genuine
Payees
noOlonger
have
to employee
lodge a copy
For example,
showredundancy
an ABN of 12 345 678 912 as:
P
You made
a code
payment
to your
in a of their
■ invalidity
previous
income
year for
thetheir
same
termination
payment
summary
with
income
tax
return.
■
compensation
for
Payer’s Australian business number (ABN) or withholding payer number (WPN)
– personal injury
Death
bene
t
ETP
Branch
– unfair dismissal
ion
number
LARATION
– harassment
CODE DESCRIPTION
– discrimination
re that the information given
on this form is complete and correct.
statement)
D
Death benet ETP paid to a dependant of the deceased
ure of authorised
O person
Other ETP not described by R, for example, golden
Branch handshake,
number gratuity, payment in lieu of notice, payment for
B
Death benet ETP paid to a non-dependant of the
Date
unused
leave,
payment
for unused
rostered days
off branch
deceased
and you made a termination payment
If a business
hassick
one
ABN
but multiple
branches,
each
Day
Month in a previous
Year income year
to the non-dependant
may have an individual branch number. Show your branch
for the same termination
ATO original
SECTION
PAYER
DETAILS
Read through B:
all the
codes before
selecting one that describes the type of payment.
If morethe
thanATO
one code
applies
to the
you will
■■ send
original
to us
as payment,
part of your
PAYG withholding
nt for
B to complete
Death bene
t ETP paid
to a non-dependant
of the
need
a separate
payment
summary for each
code.
number (ABN) or withholding payer number (WPN)
on
details
off B: Payer
deceased and you made a termination paymentPayer’s Australian businesspayment
summary
annual
report
by
14 August,
following the
Payer’s
Australian
business
number
or
Branch
to the non-dependant
in a previous
income(ABN)
year
Multiple end
payments
same termination
Life
bene
t ETP
You
must
also complete
this section
of theforincome
year
number
for the same
termination
withholding payer number (WPN)
1 2 3 4 5 6 7 8 9 1 2
number in the boxes provided. If you do not have a branch
number, leave the boxes blank.
correct.
Payer’s name
Section
B:name
Payer
Show
your
asdetails
it appears
on your activity statement.
Date
Day
Month
Year
You
must
also
complete this section
For example, show ABC Pty Ltd as:
js23887.indd 1
N
Death benet ETP paid to a non-dependant of the
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Death benet ETP paid to a trustee of the deceased estate
22/06/12 4:36 PM
Payer’s Australian business number (ABN) or withholding payer number (WPN)
Branch
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Payer’s name (use the same name that appears on your activity statement)
A B C P T Y L T D
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NAT 70868-06.2012
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Date
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n70868-06-2012_js23887.indd 1
6
Month
Year
22/06/12 4:36 PM
How to complete the PAYG payment summary – employment termination payment
Lodging your payment summary
information electronically
If you have an Auskey and your payroll software meets
our specifications, you can submit your payment summary
annual report to us electronically using the Business Portal.
It is a quick and secure way for you to meet your lodgment
obligations. You can use the Business Portal to lodge your:
■■ PAYG payment summary annual report
■■ activity statements
■■ TFN declarations
■■ annual investment income reports
■■ quartley TFN declaration reports
■■ superannuation statements and reports.
ORDERING PAYG WITHHOLDING PAYMENT
SUMMARIES
To order more copies of PAYG payment summary – employment
termination payment (NAT 70868) for payments made from
1 July 2012 and other PAYG payment summaries:
■■ visit ato.gov.au/onlineordering
■■ phone our Publications Distribution Service on 1300 720 092
at any time. You must quote your ABN to use this service.
For more information about the Business Portal
and our other online services, visit our website at
ato.gov.au/onlineservices
You can also lodge using electronic media such as disks,
CD‑ROMs or DVDs.
For more information on lodging using electronic
media, refer to How to lodge your pay as you go (PAYG)
withholding annual report electronically (NAT 3367).
If you provide your PAYG withholding payment summary
annual report to us electronically, you do not need to:
■■ send copies of payment summaries to us, or
■■ complete a PAYG payment summary statement.
How to complete the PAYG payment summary – employment termination payment
7
MORE INFORMATION
For more information about ETPs, visit our website at
ato.gov.au/leavingwork
If you need more information about PAYG withholding,
you can:
■■ visit our website at ato.gov.au/paygw
■■ phone us on 13 28 66 between 8.00am and 6.00pm,
Monday to Friday.
If you do not speak English well and need help from the
ATO, phone the Translating and Interpreting Service on
13 14 50.
If you are deaf, or have a hearing or speech impairment,
phone the ATO through the National Relay Service (NRS)
on the numbers listed below:
■■ TTY users, phone 13 36 77 and ask for the ATO number
you need
■■ Speak and Listen (speech-to-speech relay) users, phone
1300 555 727 and ask for the ATO number you need
■■ internet relay users, connect to the NRS on
relayservice.com.au and ask for the ATO number
you need.
OUR COMMITMENT TO YOU
We are committed to providing you with accurate, consistent
and clear information to help you understand your rights and
entitlements and meet your obligations.
If you follow our information in this publication and it turns out
to be incorrect, or it is misleading and you make a mistake as
a result, we must still apply the law correctly. If that means you
owe us money, we must ask you to pay it but we will not charge
you a penalty. Also, if you acted reasonably and in good faith we
will not charge you interest.
If you make an honest mistake in trying to follow our information
in this publication and you owe us money as a result, we will
not charge you a penalty. However, we will ask you to pay
the money, and we may also charge you interest. If correcting
the mistake means we owe you money, we will pay it to you.
We will also pay you any interest you are entitled to.
If you feel that this publication does not fully cover your
circumstances, or you are unsure how it applies to you,
you can seek further assistance from us.
We regularly revise our publications to take account of any
changes to the law, so make sure that you have the latest
information. If you are unsure, you can check for more recent
information on our website at ato.gov.au or contact us.
This publication was current at August 2013.
© AUSTRALIAN TAXATION OFFICE FOR THE
COMMONWEALTH OF AUSTRALIA, 2013
You are free to copy, adapt, modify, transmit and distribute this material as
you wish (but not in any way that suggests the ATO or the Commonwealth
endorses you or any of your services or products).
PUBLISHED BY
Australian Taxation Office
Canberra
August 2013
JS 27871