The Lump Sum E pay item is used for back payments relating to periods more than 12 months prior to the payment date, where the amount exceeds the Lump Sum E threshold.
To create the Lump Sum E pay item, follow these steps:
Navigate to Admin.
Select Structure.
Navigate to Pay Items.
In the pay item configuration screen, you will find the option to select Lump Sum E under the Payment Type dropdown menu.
Note:
The tax for this payment will need to be calculated manually.
The Lump Sum E pay item must also be manually added to the pay run. When adding this line item, you will be prompted to enter a Costing Date if the STP Payment Type is set to Lump Sum E. This date is used to determine the correct financial year for reporting to the ATO.
Lump sum E payments over 10 years in arrears
If you have a lump sum E payment to report that relates to a period more than 10 years prior, you will need to include the amount in the 10th year. This is due to a limitation in STP reporting which only allows you to report one YTD value per financial year up to 10 years in arrears.