Frequently Asked Questions

How to process an ETP payment to a death beneficiary

A death benefit employee termination payment to a dependant can be made in the system by adding the Death Beneficiary in as an employee and then processing an Adhoc Payrun for that newly added Death Beneficiary "Employee".

Prerequisite - Obtain the death benefit employment termination payment amount

It's recommended to first calculate the death benefit employment termination payment amount before moving on the next steps.

Here are 3 helpful ATO resources that can help you determine what falls under a death benefit ETP:

• When a worker leaves - Death of an employee
• Paying an ETP to a death beneficiary
• Death Benefit ETP - Payment to a dependant

It's recommended to first identify the ETP type code for STP purposes. Review the different ETP types here. Also see the ETP tax reporting limitation within the STP guide.

Any tax-free ETP payments will need the tax value to be adjusted as Microkeeper currently does not automatically calculate ETP tax-free payments

Step 1 - Set up the Death Beneficiary as an Employee in Microkeeper

Create a new employee and configure the employee with these key settings:

• Personal Details:
  • Given Name
  • Surname
  • Date of Birth
  • Gender
  • Email
  • Mobile Number
  • Address
    
    
• Payment and Employment
  • Status Override: Death Beneficiary
    
    
• Entitlements
  • Set all values to 0
    
    
• Employee Tax
  • Tax File Number
  • Override Tax Scale: ATO-Defined - Death Beneficiary
    
    
• Active Status
  • Start date: Set this to "01/01/1800"

(If the death beneficiary is also an employee on your payroll, you should report their actual commencement date, employment basis and tax treatment code.)

Step 2 - Create an Adhoc payrun for the Death Beneficiary and add death benefit ETP payments

Create an Adhoc payrun for the Death Beneficiary. 

When configuring the Adhoc Payrun details, configure these key details:

• Adhoc: Ad hoc - Blank Payslips
• Staff: Select the Death Beneficiary employee

On the payslip, add the death benefit ETP payment as calculated from the Prerequisite step:

Click the  Plus button located on the right side of the Payments area. An "Add Payment" window will appear. 

Fill in the values as needed:

• Title: This will be the Title that appears on the employee's payslip. E.g. "ETP Payment"
• Job: The job allocation of the payslip item if needed.
• Class: The classification of the payslip item. Refer to this table for more information.
• STP: Select the ETP type code. See this table for descriptions of the ETP type code options.
• Rate: The rate to be paid.
• Hours: The number of hours to be paid.
• Multiplier: The multiplier of the rate to be paid.

Any tax-free ETP payments will need the tax value to be adjusted as Microkeeper currently does not automatically calculate ETP tax-free payments

Step 3 - Lodge the Payrun through to STP

Follow the standard STP lodgement steps.

Step 4 - Deactivate the Death Beneficiary

The Death Beneficiary employee can be terminated through their Employee Profile once all payments have been made. 

Navigate to Navigate to Menu > Settings > Employees > click Edit for the employee> in the Employee Profile - Active Status, configure:

• Cessation Type: Deceased
• Active: Employee Terminated