Employment Termination Payments (ETP)

Employment Termination Payments (ETP)

To facilitate an Employment Termination Payment for lump sum payments in foundU 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
Payout Unused Leave
Firstly, please make sure that any relevant unused leave is paid out to the employee.
  1. In the quick menu, navigate to Payroll > Pay which will show the Draft Payslips
  2. Find the relevant employees' paycycle and click the Actions button > Edit.

  3. Under Pay Items select Annual leave: Termination. Then a Termination pop-up will display with the relevant type for reporting:
    • Include in Gross Payments (GP)
    • Lump Sum A Redundancy (LSAR)
    • Lump Sum A Termination (LSAT)

  4.  Click Calculate Totals, Preview PDF to check payslip and Update Paycycle. This will redirect you back the paycycle page for the next step.
Create ETP (or delete)

To create the ETP payment:

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

  2.  Click 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 e.g R for Redundancy 
  6. Select if it is a Transition Termination Payment, or Part of a payment in an earlier income year.
  7. Input the values for the termination including:
    • Non-Taxable Component
    • Taxable Component
    • PAYG Component.
    • Super Component
    • Add a label if required
    • Total Payment
  8. Once the correct values have been inputted you can then Preview the PDF (to view the payslip) 
  9.  If you are happy 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.
  13. Additional information on how to tax Redundancy Payments that fall outside of the tax-free threshold can be found at the following link: https://www.ato.gov.au/Business/Your-workers/In-detail/Taxation-of-termination-payments/?anchor=Redundancyandearlyretirement#Redundancyandearlyretirement.

To Delete the ETP:


  1. Navigate to Pay > Draft payslips and click ETP to go 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 a Employee 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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