Redundancy calculation and tax

mactheknife19

Trying to get an estimate on how much of a redundancy payment i would be due if I was to look for it. Working for a large multinational so there is usually availability every so often, and for personal reasons it might be just the right time.
Last round the offer was 5 weeks. So I guess that is 3 weeks on top of the 2 weeks statutory. Will be 18 years continuous with the company at the time. So I always though it was a simple 5 x 18 x Gross weekly pay, and heard that tax on that would be around 10%.
So for round numbers let's say 1000 per week. So possible 90k less 9k. But when I go on the revenue site and read about statutory it says maximum is 600 per week. So for the first two weeks is the 400 basically gone or is it taxable or what? Then what about the remaining 54 (18 x 3).
Thanks in advance.

GrumpyMe

https://www.welfare.ie/en/Pages/secure/RedundancyCalculator.aspx

This calculates the statutory.

mactheknife19

GrumpyMe wrote: »

https://www.welfare.ie/en/Pages/secure/RedundancyCalculator.aspx

This calculates the statutory.

Thanks. Yeah I used that but that only calculates the statutory. It doesn’t tell me about the balance (1000-600) or the additional weeks the company offer above statutory, or any tax implications on either the statutory or non statutory

mkdon05

Statutory payment is tax free

Take the greater of these 2 amounts for the ex gratia redundancy;

Basic exemption is 10160 + (765 x 18) + 10000(if no tax free pension lump sum is takien) = 33,930 is also tax free.

OR

Standard Capital Superannuation Benefit

Averange of last 3 years salary x 18/15 - (tax free lump sum taken)
52000(Average of last 3 years salary) x 18/15 - nil = 62,400

In this case the SCSB is more beneficial, so in summary (assuming no tax free pension lump sum has been taken)
Statutory amount is tax free,
Next 62,400 is tax free
and the balance will be fully liable to tax

mactheknife19

mkdon05 wrote: »

Statutory payment is tax free

Take the greater of these 2 amounts for the ex gratia redundancy;

Basic exemption is 10160 + (765 x 18) + 10000(if no tax free pension lump sum is takien) = 33,930 is also tax free.

OR

Standard Capital Superannuation Benefit

Averange of last 3 years salary x 18/15 - (tax free lump sum taken)
52000(Average of last 3 years salary) x 18/15 - nil = 62,400

In this case the SCSB is more beneficial, so in summary (assuming no tax free pension lump sum has been taken)
Statutory amount is tax free,
Next 62,400 is tax free
and the balance will be fully liable to tax

Thanks alot