This activity enables you to record the tax rates for employee’s termination payments. An Employment Termination Payment (ETP) is a payment made in consequence of the termination of employment. The termination can be due to retirement or resignation. Termination payments are normally taxed. Against a termination category you can specify the withholding rate below or above the capital value.
Through this activity, you will be able to do the following:
To record termination payment rate master details, select Statutory → Australia Statutory Master Setup → Termination Payment Rate Master from the Business Process menu.
Choose an Option from the Australia Statutory Setup Unit combo.
In the Termination Payment cap section, enter the Termination Payment cap and Whole of Income cap amount.
In the Tax Rate Master multiline, enter the Withholding Rate for amount equal or below the cap and Withholding Rate for amount above the cap against a Termination Payment Category.
In the Modification Details section, choose Update option from Modification Option combo to save the details with the current effective date.
Enter the New Effective From date to validate the records.
Enter relevant Remarks that pertain to the termination payment rate master.
Click Submit to save the details.
To modify termination payment rate master, select Statutory → Australia Statutory Master Setup → Termination Payment Rate Master from the Business Process menu.
Choose an Option from the Australia Statutory Setup Unit combo.
In the Access History section, choose the Effective Period combo to access the history with the effective dates.
The system retrieves and displays entire details of the termination payment rate master details. Make required modifications to the data displayed. Refer Fields in this Screen topic for an explanation of the fields displayed.
In the Modification Details section, choose Correct option from Modification Option combo to save the modified details with the current effective date.
Note: Modification Option: While modifying the rate master, you can use one of the two available modification options viz., “Correct” and “Update”. If you choose the Correct option, the changes you make will come into effect in the existing record itself. If you choose the Update option, the system closes the existing version of the record and will create a new record containing the changes you make. You are to specify a new effective date, which will become the effective date for the new record.
Enter relevant Remarks that pertain to the termination payment rate master details.
Click the Submit to save the modified termination payment rate master details.
|
Field Name |
Description |
Type |
Editable |
Field Length |
Mandatory |
Remarks |
|
Australia Statutory Setup Unit |
Choose the Australia Statutory Setup Unit for which the termination payment rate has to be defined. |
Combo |
Yes |
|
Yes |
Corresponding OU names are loaded in the Australia Statutory Setup Unit combo based on the Component Interaction Mapping available in the database. |
|
Currency |
The currency of the login OU. |
Textbox |
No |
40 |
No |
|
|
Access History section |
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|
Effective Period |
The option that indicates the effective period for the rate slab. The combo displays the latest values by default. |
Combo |
Yes |
|
No |
Use the drop-down values to view previous ‘history data’. |
|
Termination Payment Cap section |
||||||
|
Termination Payment cap |
The employment termination payment amount. |
Textbox |
Yes |
30 |
Yes |
|
|
Whole of Income cap |
The employment termination payment amount declared by the Australian Tax Office. |
Textbox |
Yes |
30 |
Yes |
|
|
Tax Rate Master |
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|
Termination Payment Category |
The termination payment category for which termination payment rate is applicable. |
Textbox |
No |
100 |
Yes |
|
|
Withholding Rate for amount equal or below the cap |
The exemption rate equal or below the termination capital value. |
Textbox |
Yes |
30 |
Yes |
|
|
Withholding Rate for amount above the cap |
The exemption rate for the amount above the termination capital value. |
Textbox |
Yes |
30 |
Yes |
|
|
Modification Details section |
||||||
|
Modification Option |
Choose the action that you want to perform. The options are Correct and Update. |
Combo |
Yes |
|
Yes |
If you choose Update then the system closes the existing details. You should mandatorily enter the New Effective date from which the details will become effective. |
|
New Effective From |
The new effective date of updated records from when the entries become valid. |
Textbox |
Yes |
|
|
|
|
Remarks |
Any remarks or additional modification information regarding the termination payment rate details. |
Textbox |
Yes |
250 |
NA |
|