What is an ETP?¶

An ETP — short for employment termination payment — is a payment you make to an employee when their job ends, on top of their normal final pay. It can include things like a redundancy payment above the tax-free limit, or a payment in lieu of notice.

ETPs are taxed under their own rules, separate from ordinary wages. That's why STP reports them on their own, rather than lumping them in with a normal pay.

In one line

An ETP is a payment made when a job ends — taxed under its own rules and reported separately in STP.

In more detail¶

For accountants & bookkeepers

ETPs have a dedicated payment date and their own type coding. The PAYGW on an ETP is itemised separately from ordinary PAYGW (Payee Total ETP PAYGW Amount). Unused leave paid out on termination is reported under the relevant Lump Sum A type, not as an ETP — see lump sum payments.

How myaccountant handles this¶

In the app — when you terminate an employee, the final pay flow captures termination payments so they're reported in the right STP fields.

→ Do it in the app: How do I terminate an employee?

General information only — not tax, super or financial advice.

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