1. Terminate the employment for employee Samson Worth based on the below information: FY2020/2021 Whole-of-income cap 180,000; ETP cap 215,000

• Samson Worth was notified that his employment will be terminated on 14/04/2021
• The company no longer requires an employee for his position due to the installation of new technology.
• Samson Worth started his employment with Little Pear Group on 18/10/2010
• He works 20 hours per week and is under the preservation age
• All unused annual leaves, personal/carer's leave and any eligible long service leave should be paid out
• As part of the termination agreement any time in lieu owing should not be paid out.
• The company will also pay Samson a $70,000 redundancy settlement.
• In gratitude for his service the company will also pay a $20,000 golden handshake.
• The last pay run covers the week between 8/4/2021 and 14/04/2021 and will be paid on 15/04/2021.
• Business settings > Opening Balances > Initial financial year must be set to FY2020/2021

	Workings	Answer
Final weeks' pay		$ 1942.31
Unused Annual Leave		$ 2480.17
Unused LSL		$ 14,424.88
Unused personal/carers leave		$ 1579.99
Redundancy settlement		$ 70,000
Golden Handshake		$ 20,000
Total		$ 110,427.35

Calculate the tax-free component of the redundancy settlement

	Workings	Answer
		$
		$

Applying the ETP caps: Genuine Redundancy

	Workings	Answer
Whole-of-income cap		$
ETP cap

Applying the ETP caps: Gratuity

	Workings	Answer
Whole-of-income cap		$
ETP cap		$

Withholding amounts

	Workings	Answer
Concessional tax		$
Non-concessional tax		$
Total tax		$