Help!!!!!!
Beautiful_bobo
Registered Posts: 106 Dedicated contributor 🦉
Hi All
Not being an expert in payroll, know the basics but thats it. I have a guy thats been made redundant. So do I pay his month salary and include his redundancy, I know its tax free but we have a code for redundancy or do the payment for redundancy then zero it and do the normal monthly salary. so two seperate payments. Hope that makes sense....
Thanks
Jennie
Not being an expert in payroll, know the basics but thats it. I have a guy thats been made redundant. So do I pay his month salary and include his redundancy, I know its tax free but we have a code for redundancy or do the payment for redundancy then zero it and do the normal monthly salary. so two seperate payments. Hope that makes sense....
Thanks
Jennie
0
Comments
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If I am understanding you correctly.
You can put both the salary and redundancy payment on the same payslip, the salary element will be taxable and the redundany element tax free (up to £30,000) If the salary payment is in lieu of notice then there could be an argument as to whether that part is taxable or not, dependant on the original contract. So when your calculating the tax you only calculated it on the Salary figure.
If you are using software, the redundancy payment (or code) should be set up as non taxable.
I hope that helps somewhat0 -
I would put it on the payslip, then run the payslips to check that it comes out not taxed. Then if it's done it right, finalise the payroll run as normal.
As Zara says, the payment is taxable in certain circumstances so you may need to check this.0
