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Redundancy Question

  • 08-04-2010 4:36pm
    #1
    RATM
    Closed Accounts Posts: 3,591 ✭✭✭


    I have this redundancy question to do as part of a larger project a t college. It is getting my goat as all other questions had some element of trickery about them but this one seems too simple. Here it goes if anyone would like ot attempt it and help me out=) Im 90% sure I have it right but I just want to double check before submitting :)

    John commenced employment with ABC Ltd on Jan 1 1984. He was made redundant on 31 Dec 2009. He has not received any previous lump sum payments. You are required to provide John with details of the maximum ex gratia lump sum that he can receive tax free from the company.


Comments

  • #2
    McCruiskeen
    Registered Users, Registered Users 2 Posts: 159 ✭✭McCruiskeen


    Hi

    Given his length of service it is likely that the SCSB exemption would be most beneficial for him as this usually favours employees with long service. However to calculate this you would need his salary for the last 3 years. Otherwise using the increased exemption will apply calculated as follows:

    10160 + 10000 + (765 * 26) = €40,050.

    However, there are pension issues to consider also based on whether the individual has a pension with the company and what option they choose in relation to their tax free lump sum.


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