Richard Gray presented a resignation letter to his manager on 2 June 2019. Information extracted from his
Question:
Richard Gray presented a resignation letter to his manager on 2 June 2019. Information extracted from his employment contract states that he started working for Little Pear Administration Pty Ltd on 13 August 2002 and he is entitled to four weeks annual leave per year. His last day will be on 30 June 2019.
After talking to Richard’s manager, you find out the following information:
- 2018-19 taxable income is $88,400.00
- The annual leave balance is 6 weeks
- No long service leave has been taken (NSW LSL legislation is applicable)
He will receive an ETP in the form of gratuity of $147,900.
Little Pear ensures that its payroll policies and procedures for the organisation meet all relevant legislative requirements.
- Prepare the information to process the employment termination payment, by filling in the tables below (show your workings). Ensure compliance and termination procedures are being followed.
| | WORKINGS | ANSWER |
| Unused Annual Leave | $88,400 /52W/38h = $44.7368 38hrs x 6 w = 228 x $44.7368 = | $ 10,199.99 |
| Unused LSL | 38hrs x 13.867W= 526.946 x $44.7368 = | $ 23,573.88 |
| Superannuation (for year) | 88,400 X 9.5% = | $ 8,398 |
Applying the ETP caps:
| | WORKINGS | ANSWER |
| Whole-of-income cap | ? | |
| ETP cap | $? |
Withholding amounts:
| | WORKINGS | ANSWER |
| Concessional tax | $57,826.13 X 32% = | $18,504.36 |
| Non-concessional tax | $147,900 - $57,826.13 X 47% = | $42,334.72 |
Hi I need calculation and explanation about WHOLE OF INCOME CAP and ETP Cap only base on my above calculation. thanks
Expert Answer:
WholeofIncome Cap and ETP Cap Calculation WholeofIncome Cap Standard amount180000 for the 201920 inc... View the full answer
