Employment Termination Payments (ETP)

Employment Termination Payments (ETP)

Employment Termination Payments are generated from the Pay page in foundU, but separately from an employee's normal pay.
To facilitate an Employment Termination Payment for lump sum payments you will need to:
    1. Payout any remaining leave.  For standard terminations follow this process.
    2. Make an ETP payment. e.g. Lump sum A/ Lump sum D

Please follow the steps below. For more guidance on making ETP payments and what the different ETP codes mean, please use this ATO Guide.

Payout Unused Leave

Firstly, please make sure that any relevant unused leave is paid out to the employee.

For any full-time or part-time permanent employees, you should refer to our standard termination article in order to payout any unused leave for them as part of the termination process.

  Please note: Any unused TOIL cannot be paid out on the payslip. In this case, you will need to pay out any unused TOIL via an Employment Termination Payment (ETP). Please keep reading below for steps on how to create an ETP.

To create an ETP or delete an ETP

Once you have paid out the employee's remaining leave, you are ready to create the ETP.

To create the ETP payment:

  1. Navigate to Pay > Draft payslips and click ETP to go to the Employment Termination Payment page.


  2. Select Create New Payment.
  3. You can then select the Employee, Financial Year Ending and Payment Date.
  4. Then click Add New Payment.

  5. Select the Termination Type from the drop-down.
    • Life Benefit
    • Death Benefit
    • By selecting Life or Death benefit, the next box (ETP code) will display the appropriate options.
    • For more information on selecting Life Benefit or Death Benefit, read this helpful ATO document on ETP reporting.
  6. Select the relevant ETP code from the drop-down box.

  7. Input the values for the termination including:
    • Non-Taxable Component
    • Taxable Component
    • PAYG Component
    • Super Component
    • Add a label if required
  8. Once the correct values have been inputted you can then Preview the PDF (to view the payslip). This will calculate the Total Payment.

  9.  If you are happy to proceed, click Create Payment. 
  10. A confirmation will appear allowing you to enter any comments for auditing purposes. Click Save Changes.

  11. This will create a pdf of the ETP and be available for the employee to download in their Employee Portal via Timesheets > Payslips.

  12. In Pay > Payslips You're now able to access the ABA History for this payment.

If you would like to delete an ETP Payment

To Delete the ETP:
  1. Navigate to Pay > Draft payslips and click ETP to go to the Employment Termination Payment page.
  2. Clear any existing filters by using the x and clear the financial year. This will display all the ETP payments made.
  3. Use the filters to locate the ETP.

  4. Select the delete icon, and a message will appear to ask if you would like to delete the associated ABA file for the ETP.
    • Select YES if the ABA file for the specific ETP has not been deleted.
    • Select NO if you have already deleted the specific ABA file.
    • Once acknowledged your ETP is deleted.

ETP Reports

Once an Employment Termination Payment has been made, you can access an Employment Termination Payments (ETP) report with a breakdown of:

  • Employee
  • Payment date
  • Financial year ending
  • Type
  • Tax-free
  • Taxable
  • PAYG

To generate the report: 

    1. In the quick menu navigate to Reports > Financial Report Centre and in the Payroll Reports section select ETP Report.
    2. Select the From and To Dates or Financial Year or Filter by Specific Employee or Cost Code.
    3. Click Submit. You're also able to Export PDF or Export CSV.

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