When a member of your staff leaves your employment, you'll generally have to make some sort of final payment to them. Many of these payments are known as employment termination payments (ETPs). Depending on what's included in the payments you make, you'll need to take out different amounts of tax.
You may also be generally required to make a bona fide redundancy payment. This is a payment made to an employee who is dismissed because the job they were doing is made redundant.
The Australian Taxation Office (ATO) provides guidance on meeting your obligations to employees who stop working for you.
