Excel calculator for Redundancy in Ireland

Thanks for that Charlie company i work for looking for redundancys. So if i calculated right there is a good chance i will be taking it.

this is an excellent spreadsheet thanks

is this for specifically voluntary redundancy, or involuntary? I'm not sure from the wording in the OP, but I'm guessing it's involuntary redundancy?

Thanks for clarifying if you can, and thanks a million for the spreadsheet!

Hi there, I notice on http://www.redundancy.ie/employee/voluntarysevere.html that it says for voluntary seperation ' Tax:
Unlike redundancy payments, voluntary severance payments are not tax-free payments and are subject to normal tax assessment.'

Would that not imply that the excel file is incorrect for voluntary severance? From the redundancy.ie site it implies that you would pay tax on the whole amount - It does seem to be a grey area so any light you can shed would be much appreciated!

Great spreadsheet - couldnt get my head around the numbers!

I came across this just now and had a look at the spreadsheet.

There are several errors, not hugely significant, so don't get into an argument with anyone if you are claiming that their calculations are incorrect!

I will have a look at it later and suggest repairs if I get a chance.

There are a couple of important distinctions about this stuff.

If a company tries to get people to leave, there may or may not be a "redundancy" situation. Redundancy is a specific term that applies when a position is disappearing. A redundancy payment is calculated using the criteria that are shown at https://www.welfare.ie/en/Pages/secure/redundancycalculator.aspx

Known as statutory redundancy. Completely tax-free. People who are losing their jobs because of "downsizing" etc will usually qualify for this. People who are being dismissed for fraud, misbehaviour or, sometimes, incompetence would not normally qualify for statutory redundancy.

If an employer decides to pay more than the statutory minimum, that is regarded for tax purposes as a "termination payment". Such a payment can be made to anyone leaving employment for any reason - not just redundancy but also retirement, dismissal or just because an employee wants to leave; often referred to as "ex-gratia" or "golden handshake" payments. Termination payments are taxable as Dmaurice has pointed out is stated on www.redundancy.ie - but what has not been made clear is that there are very good exemptions from tax, even after these exemptions have been reduced in recent years.

For example, everyone leaving a job, for any reason, is entitled to exemption from tax on a payment of up to €10,160 plus €765 for every completed year of service. There are other possible adjustments that are shown in the spreadsheet that I have tweaked a bit today. I have fixed some formulas, incorrect amounts, included USC etc. There is still a flaw in relation to the basic exemption and the increased exemption where the pension lump sum figure is more than €10,000 but if you have amounts like that, you might need to seek more detailed specialist advice.

It's far from perfect but it will give you a reasonable idea. Basically, if you end up paying tax on a lump sum, you will end up paying much less tax than you would if you got the same amount of gross pay while working. The downside, of course, is the loss of income if that is the case but if you have got a golden handshake when moving to a new job, that can work out nicely.

Not sure what happened there.

does anyone have an up to date copy of this ?