Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Redundancy - Benefit in kind

  • 26-07-2012 7:21pm
    #1
    Retrovertigo
    Registered Users, Registered Users 2 Posts: 497 ✭✭


    Hi,

    Hoping someone might be able to help with this. I recently found out the company I work for is closing down and at the moment are working out what redundancy packages will be available to us. I'm just wondering if apart for the 2 weeks pay for each year of employment plus a bonus week, if the monthly bonuses we were receiving each month for the last 3 years should be accounted for with regards to benefit in kind?

    Any help would be really appreciated.


Comments

  • #2
    wmpdd3
    Registered Users, Registered Users 2 Posts: 9,625 ✭✭✭wmpdd3


    Its capped at 600euro per week wages.


  • #3
    tatli_lokma
    Registered Users, Registered Users 2 Posts: 3,332 ✭✭✭tatli_lokma


    www.redundancy.ie wrote:
    The amount of the Redundancy payment is determined by the employee's length of continuous service and weekly earnings. Weekly earnings include gross weekly wage, average regular overtime and benefits-in-kind. Currently, the maximum weekly amount for a statutory redundancy payment is €600.

    so yes, your reconable earnings are your gross wage, including o/t and BIK taken at an average rate. But as wmpdd3 points out, this is subject to a maximum payment of €600 per week.

    so after 3 years service you are looking at a maximum of €4200 in statutory redundancy payments - this is tax free. Also you might get an ex-gratia payment from your employer which is however, taxable.


  • #4
    Eoin
    Registered Users, Registered Users 2 Posts: 21,263 ✭✭✭✭Eoin


    Little Ted wrote: »
    Also you might get an ex-gratia payment from your employer which is however, taxable.

    Only if it's over 10K though? I think this is what this page is saying.


  • #5
    tatli_lokma
    Registered Users, Registered Users 2 Posts: 3,332 ✭✭✭tatli_lokma


    Eoin wrote: »
    Only if it's over 10K though? I think this is what this page is saying.

    Yeah that is what I thought too, but the redundancy.ie site doesn't make reference to it. I think your link for citizens info is the correct info though - I didn't have to pay tax on my ex-gratia payment as it was less than €10,000, so unless that has changed since last december you won't have to pay tax on it.


  • #6
    Retrovertigo
    Registered Users, Registered Users 2 Posts: 497 ✭✭Retrovertigo


    Thanks for the replies, had a word with the HR lad in charge today and he advised that it would be included and also that the tax free limit is 10750 plus an additional 750 per year of employment, slightly confusing.


  • Advertisement
  • #7
    phoenix999
    Banned (with Prison Access) Posts: 581 ✭✭✭phoenix999


    Retrovertigo wrote: »
    Thanks for the replies, had a word with the HR lad in charge today and he advised that it would be included and also that the tax free limit is 10750 plus an additional 750 per year of employment, slightly confusing.


    Yes he's right about that. Full details on the following Revenue page:

    http://www.revenue.ie/en/tax/it/leaflets/it21.html


Advertisement