Tax on redundancy

Discussion in 'Redundancy, unemployment & jobseekers entitlements' started by partnership, Jan 23, 2017.

  1. partnership

    partnership Frequent Poster

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    If someone got a redundancy payment of 140,000 - non of it statutory - how much would they pay on tax and usc?
     
  2. PaddyW

    PaddyW Frequent Poster

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    You would need to know the number of years service involved for a start.
     
  3. Gordon Gekko

    Gordon Gekko Frequent Poster

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    That depends on a multitude of factors.

    For example, earnings, length of service, membership of any associated pension scheme, previous redundancy, etc.
     
  4. partnership

    partnership Frequent Poster

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    Sorry wasn't sure what was needed. Public sector so would get pension lump sum in future. 26 years service, no previous redundancy or lump sums. Average earnings over last three years 75k.
     
  5. Gordon Gekko

    Gordon Gekko Frequent Poster

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    Back of the envelope stuff...around €70k tax free.

    So about €34k in tax etc.
     
  6. amtc

    amtc Frequent Poster

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    Claim it back on r5o form
     
  7. elacsaplau

    elacsaplau Frequent Poster

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    Partnership,

    1. What age are you or how many years do you have to retirement?
    2. Do you have an option take your pension benefits in pension format only - i.e. can you waive your right to a lump sum from the pension plan?
     
  8. partnership

    partnership Frequent Poster

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    52 8 to go and no would not waive
     
  9. partnership

    partnership Frequent Poster

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    Have looked at the tax for long service scsb and because of long service it would seem i would get most tax free apart from USC. Say lump sum is 150000 average earnings last 3 years 75000 py 27 years service. My read is 75000 x 27 -150000= - 15000 so would pay on that amount is that right.