Please follow this article in conjunction with Enter an employee termination pay and terminate an employee.
Under STP2, when an employee is terminated and unused leave is paid out the payment must be identified as Unused Leave on Termination as per ATO requirements.
https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-Phase-2-employer-reporting-guidelines/?anchor=Terminationpayments#Terminationpayments
In Attaché, separate Income and/or Allowance codes are needed for each type of leave paid out. These separate codes are in addition to your ordinary Annual Leave and Long Service Leave pay elements used when an employee is paid for Annual Leave or Long Service Leave taken while employed.
Setups to be completed
Set up each of the following types of leave on termination that you will be paying. Then set up the STP2 connection as per the section below. Once the required pay elements are set up, add them to the termination timesheet to pay out Unused Leave.
Annual Leave
Set up a new Income Type code as follows:
Open Setups, Payroll, Income Types, Income Type Maintain.
At Income Type Code, use Find (F2) to check if you have an existing annual Leave payout on termination code.
📌 Note: that this will not be the code you use when paying Annual Leave while employed. If a new code is required, then then proceed to Step 3.
Enter ALTERM as the Income Type Code.
Ensure other fields are set up as per the example screenshot below, set the options for Pay Advice display as you prefer.
Long Service Leave
Set up a new Income Type code as follows:
Open Setups, Payroll, Income Types, Income Type Maintain.
At Income Type Code, use Find (F2) to check if you have an existing long service leave payout on termination code.
📌 Note: that this will not be the code you use when paying long service leave while employed. If a new code is required, then proceed to step 3.
Enter LSLTERM as the Income Type Code.
Ensure other fields are set up as per the example screenshot below, set the options for pay advice display as you prefer.
Leave Loading
Set up a new allowance code as follows:
Open Setups, Payroll, Allowances, Maintain.
At Allowance Code, use Find (F2) to check if you have an existing leave loading payout on termination code.
📌 Note: that this will not be the code you use when paying Leave Loading while employed. If a new code is required, then proceed to step 3.
Enter LOADTERM as the Allowance Code.
Ensure other fields are set up as per the example screenshot below, set the options for pay advice display as you prefer.
STP2 Unused Leave on Termination Connection
To identify the above codes as relating to Unused Leave on Termination:
Login to Attaché Online.
Select STP Setup, on the left-hand menu.
Select the applicable Attaché company from the drop-down menu.
Select the Unused Leave on Termination tab.
Select any Unused Leave on Termination pay elements in the list so that they are reported as this type of payment.
