Employment termination payments
A payroll tax liability arises if an ETP is paid or becomes payable by the employer, and the employee would pay income tax if the ETP had been paid to the employee.
In some cases an ETP may be payable to the employee but it is not actually paid to the employee.
The amount of the ETP that is subject to payroll tax is the amount that would be subject to income tax in the hands of the employee.
Summary of payroll tax liability
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