What is Lump Sum B?
Lump Sum B covers long service leave accrued before 16 August, 1978, which is paid out upon termination, irrespective of the reason for termination.
Employees born after August 16, 1978, are not eligible to declare lump sum B for reporting.
How does it work?
When reporting lump sum B, it is necessary to record the complete amount, even though only 5% of it will be subject to taxation.
This component has become less relevant in contemporary times due to the timeframe, yet it still holds importance for a few employers with employees who have served for the long term.
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