Insolvency Payment taxation query

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3114Jam

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Hi, just wondering how insolvency payments are taxed by the receiver?
The receivers are due to receive payment within the next few weeks and then they have to be taxed before I get my payment.
I know the payments are taxable for PAYE and PRSI but is there anyway to work out how much I will actually get before I get it?
 
The Receiver should deduct emergency tax on any arrears of pay and holiday. Your minimum notice payment will be tax free. Any redundancy payment will be tax free, and will be paid directly to you by the Department.

Jim Stafford
 
I also have question that is more specific.
If you worked in 2016 as self-employed person and also some time for company that went down (became insolvent) and you received payment from DSP through Insolvency Fund in 2017 when you were still self-employed person how should this income be treated in 2018 when you are going to file your taxes through Form 11?
I'm curious to know if the income from payment through Insolvency Fund can be used as 2017 PAYE income so that the higher tax and usc paid can partially offset tax and usc from self-employment income?
Other question also is if Revenue actually knows in their system (ROS, PAYE) that such a payment has happened at all. If not who should we contact then as no revised P45 from receiver/liquidator was received after payment from Insolvency Fund.

Thanks,
Martin
 
hi, I do have a question in relation to insolvency payments - I did try to find something in legislation but i cant.

Arrears of holidays and wages.
If employee work on Sunday and is promised to be paid and has 1 day in lieu extra on top of the payment .
Will the DESP pay as arrears of holidays that one day in lieu or they will ignore that.

other situation

If employee work Sunday - and instead of been paid by the employer is offered two lieu days. will DESP pay for two days or only one standard wage for that Sunday?

And what about carried holidays from the previous year - its was just agreement between employee and employer to carry over the holiday, no sick leave or anything like. can liquidator ignore them?

is anyone know, all help appreciated
Joanna
 
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