Q: I need to calculate a staff’s final pay, we are letting her go due to not being fully vaccinated. We negotiated with the union to pay her 4 weeks notice pay.

Will this be taxed the same as redundancy pay?  I need to set this up in MYOB GreenTree and I am not sure if it should be set up as extra pay or lump sum payment.

Can you please advice?

A: Notice paid in lieu should be taxed as an extra pay (like a standard bonus).  It is not taxed like a redundancy pay without earner levy (using the flat tax rate).  Also there will be 8% holiday pay on the 4 weeks.