Lump sum E payments relate to an earlier income year (or years) and return to work payments. Classified as assessable income, these payments are included in STP reporting. Please refer to the ATO website (www.ato.gov.au) for more details on Lump Sum Payment E.
📌Note: codes with the Tax Certificate code of Lump Sum Payment E will not appear on the STP Setup menu, Allowances tab in Attache Online. For more information, refer to Single Touch Payroll Phase 2 (STP2) resources.
Entering Label E lump sum payments
If you need to pay an employee a lump sum payment which is backdated by 12 months or more, you need to Create and use an allowance so that the payment is correctly reported. To do this:
Go to Setups, Payroll, Allowances, Maintain
Create an allowance as per the screen shot below, setting the Tax Certificate Code field to Lump Sum Payment E
Entering an Allowance line for Lump Sum E in a timesheet
When creating the time sheet to include a lump sum payment, enter the year to which the payment refers in the Lump Sum Year field. This will be included in the relevant STP batch for reporting to the ATO.
