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Contract Terminated Monies Owed.

  • 30-04-2012 7:45pm
    #1
    zombie_lover
    Registered Users, Registered Users 2 Posts: 3 ✭


    Hi All,

    I was recently made redundant after nearly 4 years of service within a big organisation. My contract was not due to finish until August of 2012 and they terminated it in March. As I did not have a get out clause within my contract there was monies owed from April to August. Although I have received my monies I have been taxed on the full amount plus redundancy. I would be grateful if anyone could tell me if I am entitled to anything back.

    I started a new job and now am paying tax on those earnings too.

    I received a taxable amount of €25,556.96 through the payroll and less tax of €9,421.85, prsi of €1,000.23 and USC of €1,732.23, I received a net payment of €13,402.65.

    I also received a tax free payment of €14,511.61.

    payment is made up of:
    5% stored value 9,675.61
    Ex gratia 22 weeks (€1,161.68 x 22) 25,556.96
    Redundancy payment 4,836.00
    Total €40,068.57 - €25,556.96 taxable and €14,511.61 tax free

    Appreciate the help!!!!!:confused:


Comments

  • #2
    IrishTaxGuide
    Registered Users, Registered Users 2 Posts: 6 ✭IrishTaxGuide


    Hi ZL,

    Appears that your employer has treated your redundancy (€4,836) and 5% stored value (€9,675.61) as tax-free and taxed the ex-gratia. Assuming that the redundancy amount is statutory redundancy then it is correct that this is tax-free. The ex-gratia, if provided for under your contract (which it appears to be here but correct me if I'm wrong), is taxable. I'm not exactly sure what the 5% stored value is.


  • #3
    zombie_lover
    Registered Users, Registered Users 2 Posts: 3 ✭zombie_lover


    Hi,

    Thanks for the feedback. The stored value is correct, 5% of my gross earnings to date! But they advised me I could claim back tax on my earnings as they should have put in for an Increased Lump Sum on exemption payment.


    Confused to say the least.....


  • #4
    zombie_lover
    Registered Users, Registered Users 2 Posts: 3 ✭zombie_lover


    Guys I applied for a exemption on my redundancy as my ex-gratia payment was part of redundancy, this is what I got back from Revenue. Have no clue where the figure of 18252 came from:o:eek:



    As you have commenced another employment,any refund of Tax due to you will be made by your new employer.

    I have advised them to take into account previous Pay of €18252 rather than € 40707 as stated on your P45.


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