Mary Bucks, aged 40, was dismissed on 30 June 2019 by Debt Administration Pty Ltd. Her salary
Question:
Mary Bucks, aged 40, was dismissed on 30 June 2019 by Debt Administration Pty Ltd. Her salary and wages for 2018-19 were $65,000, $10,000 for unused annual leave, $13,500 for unused sick leave. Mary has evidence that she was unfairly dismissed because of her strong union affiliation. She hires a lawyer to dispute her termination and he negotiates a $22,000 out-of-court settlement for unfair dismissal.
- Prepare an ETP report for Mary’s manager showing the amount of tax withheld from the ETP.
Salary 2018-19 | $ |
Unused Annual Leave | $ |
Unused Sick leave | $ |
Compensation for unfair dismissal | $ |
Whole-of-income cap | $ |
ETP cap | $ |
Concessionally taxed amount | $ |
Tax withheld | $ |
- Explain the proper tax treatment for different components of the payment in part a) by completing the table below:
Components | Tax Rate | ETP code (if applicable) |
Salary and wages | ||
Unused annual leave | ||
Unused sick leave | ||
Compensation for unfair dismissal |
- What information must be made and kept by Little Pear Administration Pty Ltd. Regarding Mary’s employment?
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger