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Reckon - Quickbooks - MYOB – Terminating an employee and notifying the ATO?
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Published on Thursday, 23 April 2015 14:50
Bookkeeper called me - We just had an employee cease employment with us, and I understand how to notify and terminate them from their super fund but do I need to notify the ATO as well?? I notice on the bottom of the tax declaration there is a box that you tick if you “no longer pay for this employee”....do I tick that and send the copy to theATO??? This is the copy I have on their employee file.
Solution - No you don’t need to notify the ATO, and there is no need to enter on the TFN Declaration, unless started and stopped within a short few days of first starting with you.
Complete final regular pay, find their entitlement to Annual Leave (it is good practice to print it as a record in case they ask for verification) and pay that to an Unused Payroll category (tick this wage category on via their card while in the pay run in MYOB or before pay run in Reckon/Quickbooks (*ensure the pay is without super and zero out the Ann Leave/Hol Pay and Sick pay that may accrue again) ie just Unused Hol Pay and PAYG tax is all the final pay should have. You can just do the Payment Summaries at year end (unless the employee requests one now, then you must provide).
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