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Death benefit payments are early termination payments (ETPs) paid by your organisation to beneficiaries of the deceased includingWhen an employee passes away, you will need to process a special pay to their beneficiaries, which may include:

• dependents
• non-dependents
• the trustee of the deceased estate.

In this guide

1. Renaming deceased employees 

2. Recording employment termination details for deceased employees

3. Updating tax scales for deceased employees

4. Processing the final payments

1. Renaming deceased employees

AnchorrenamingdeceasedemployeesrenamingdeceasedemployeesRename the deceased employee to 

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Renaming deceased employees

The Australian Tax Office requires deceased employees need to be renamed to include the phrase "Estate of the Late".

To rename a deceased employee:

1. Select Module > Payroll > Payroll Employee Maintenance using the Main menu.
2. Search for the deceased employee.
3. Select the record of the deceased employee using the Payroll Employee Selector, if necessary.
4. Click the Personal tab.
5. Click to launch Community Maintenance.
6. Type Estate of the Late into the Surname field.
7. Click OK.
8. Click File > Save using the Main menu.

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Recording employment termination details for deceased employees

AnchorrecordingterminationdetailsrecordingterminationdetailsEmployment termination details are recorded Deceased employees need to have their employment termination details updated to let the ATO know that the employee why they stopped working at your organisation due to their death.

To record employment termination details:

1. Select Module > Payroll > Payroll Employee Maintenance using the Main menu.
2. Search for the deceased employee.
3. Select the record of the deceased employee using the Payroll Employee Selector, if necessary.
4. Click the General tab.
5. Select the Terminated field to flag the employee as terminated.
6. Select the employment termination date using the Terminated Date field.
7. Select the Deceased using the Reason drop-down list.
8. Click OK.
9. Click File > Save using the Main menu.

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Updating tax scales for deceased employees

AnchorupdatingtaxscalesupdatingtaxscalesDeceased employees  

To update the tax scale of a deceased employee:

1. Select Module > Payroll > Payroll Employee Maintenance using the Main menu.
2. Search for the deceased employee.
3. Select the record of the deceased employee using the Payroll Employee Selector, if necessary.
4. Click the Tax tab.
5. Select DBXX using the Tax Scale drop-down list.
6. Click OK.
7. Click File > Save using the Main menu.

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Processing final payments

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To process the final payments:

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