Report Lump Sum A Type R - Phase 2

(from the ATO's Business Implementation Guide)

Lump Sum A Type R is all unused annual leave or annual leave loading, and that component of long service leave that accrued from 16/08/1978, that is paid out on termination only for genuine redundancy, invalidity or early retirement scheme reasons. If the employee was terminated for other reasons, see Lump Sum A Type T.

This payment would be expected to be reported in concert with the following fields, if the payment is as a result of the complete severance of the employment relationship:

Cessation date – refer to the Tax Treatments position paper

Cessation type – refer to controlled information published document: ATO STP Phase 2 Tax Treatment Position Paper, section 4.2 Cessation Type Code. Relevant cessation types are:

° R (Redundancy) – an employer-initiated termination of employment due to a genuine bona-fide redundancy or approved early retirement scheme

° I (Ill Health) – an employee resignation due to a medical condition that prevents the continuation of employment, such as for illness, ill-health, medical unfitness, or total permanent disability

Check with your tax advisor or the ATO whether unused leave is included in Gross Amount, Unused Leave on Termination, or is a Lump sum A Type R or Lump sum A Type T amount. If it is a Lump Sum A Type R amount and you used a Payroll Category in MYOB® (for example Unused Holiday Pay - for post 17 August 1993 accrual and the payment was paid in connection with a genuine redundancy, early retirement scheme or the invalidity segment of an ETP), ensure you map this to the Lump sum A Type R STP Field.

First select the STP Field as per below:

Next Map the Payroll Category to this STP Field as per below:

The Final STP Report Data Screen with then show the Lump sum A Type R amount.

If not using MYOB®

Simply select the relevant STP Field here as shown in the first image above. On the Assemble Income Statement Data (YTD) screen, manually add or import YTD data indicating the YTD amount for each Payee against each STP Field including Lump sum A Type R amount.