Redundancy is a word that is being heard a lot more of these days. Apart from the upheaval and emotional distress it causes the person and their family, there are also tax reliefs that need to be claimed.
If you have worked with an employer for two years or more, you are entitled to a redundancy package. The basic statutory package entitles you to two weeks pay (up to €600 a week)for every year of service plus one extra week.
Department of Trade and Enterprise redundancy calculator
The rules around taxation of redundancy payments are complex and it is vital that the employer and employee get advice to ensure that all reliefs and exemptions are availed of.
Some of the reliefs available are:
Basic exemption
Increased exemption
Standard Capital Superannuation Benefit
Top Slicing Relief
For an appointment to discuss this please contact us at tax@pkeane.ie