Cessation of employment income 108-07010110

This procedure does not cover customers who have ceased self-employment.

If the customer or their partner have ceased employment, there are several things to consider.

• Ceasing any continuous income that may be recorded
• Recording any final pay amounts
• Determining appropriate action for any unused leave, redundancy and termination payments paid
• Changing reporting requirements if appropriate
• A change to the current year income estimate may be required for customers who also receive family assistance payments

Where cessation details are reported through Single Touch Payroll (STP), refer to Item 22, Table 4 in Single Touch Payroll.

Note: if the customer is in the Youth Bonus Wage Subsidy (YBWS) 26 week suspension period, they may be eligible to have their payments restored if employment has ceased through no fault of their own. Customers ceasing employment under the YBWS initiative must have the Verify Employment Separation Workflow in Process Direct or the Verify Employment Separation guided procedure in Customer First completed to finalise the action.

Go to Step 2.

When a customer or their partner ceases employment, any continuous income currently recorded on the Employment Income Paid Details (EAPP) screen must be ceased, see Determining the Date of Event for employment income for coding information.

Any final employment income payments (separate to unused leave and termination payments) the customer or their partner is paid must be recorded as normal. If it is not the customer's reporting day, advise them to continue reporting until they are paid their final pay details. See Recording and correcting employment income details.

If a Display on Access DOC has been recorded for this employment, move it to the normal document list by entering an expiry date of today's date.

Note: any income amounts already recorded will continue to affect for the full period of apportionment, regardless of if employment has ceased. See Recording and correcting employment income details for apportionment explanations and examples.

Go to Step 3.

If the customer or their partner have ceased work and have reported all final employment income payments paid, it may be appropriate to reassess their reporting requirements.

See Reporting overview to determine if a change is appropriate. If a change in reporting is deemed necessary, for example, taking the customer off reporting, see Reporting screens for assistance.

Note: Service Officers must always advise a customer of new reporting requirements and notification obligations.

Go to Step 4.

If the customer or their partner has been paid out unused leave, or been paid a redundancy or lump sum termination payment, the payment will be treated differently depending on which payment the person receives. See Leave and termination payments paid by an employer for details of how the payment is to be assessed.

Employment cessation details may be reported by employers via Single Touch Payroll (STP). Cessation details including the date employment ceased, the reason employment ended and any leave or redundancy payments paid may pre-fill when reporting for the customer to check, confirm or change. An Employment Separation Certificate (SU001) may not be required when the customer confirms the data, unless:

• there is doubt about the number of days/duration provided, or
• the customer has made changes to the cessation payments. See Employment Separation Certificate (SU001)

STP data is only available for customer's employment details, not for partners.

Go to Step 5.

Check if the customer needs to update their income estimate for Family Tax Benefit (FTB) or Child Care Subsidy (CCS). Also, check if CCS customers need to update their Activity Test Details.

Note: their estimate must include taxable income support payments and tax-free pension/benefit amounts, employment income and any other components of adjusted taxable income (ATI) received or expected for the whole financial year for both members of the couple. If either member of the couple is eligible for income support payments, the expected payments must also be included in the estimate for family assistance.

Procedure ends here.