Termination

Question 1

what is an ex gratia payment

Answer 1

lump sum/compensation on termination

Question 2

what is redundancy payments

Answer 2

payment for damages for unfair dismissal

Question 3

which termination payments are taxable

Answer 3

those which are contractual

Question 4

examples of termination payments that could come under the contract

Answer 4

pay in lieu of notice
holiday pay
lump sum pay

Question 5

are ex gratia payments taxable

Answer 5

no

Question 6

is statutory redundancy payment taxable

Answer 6

no
exempt

Question 7

what is the termination package

Answer 7

the taxable part of the termination payments

Question 8

if a payment is outlined in the contract is it included in the termination package

Answer 8

no

Question 9

what schedule does holiday pay fall under

Answer 9

Schedule E

Question 10

would retention of a company car (not stated in contract) come under package

Answer 10

yes

Question 11

would write off of company loan (not stated in contract) form part of package

Answer 11

yes

Question 12

under what schedule does the termination package go

Answer 12

schedule E

Question 13

3 ways of determining the tax free amount of the termination payment

Answer 13

1. basic exemption
2. increased exemption
3. SCSB

Question 14

how do you know which method of tax exempt part to use

Answer 14

whichever gives highest result

Question 15

what is the basic exemption

Answer 15

€10160 + €765 for each complete year of service

Question 16

what is the increased exemption

Answer 16

€10160 + €765 for each complete year of service + additional €10000 - pension amount

Question 17

who can claim the increased exemption

Answer 17

people with lump sum pensions less than 10000

Question 18

who cannot claim increased exemption

Answer 18

if claimed relief in excess of basic exemption in previous 10 years

if lump sum pension > 10000

Question 19

what does SCSB stand for

Answer 19

standard capital superannuation benefit

Question 20

what is SCSB formula

Answer 20

[[a*b]/15] - c

a = average renumeration 36 months prior to termination

b = number of complete years of service

c = any lump sum from pension

Question 21

what is an emolument

Answer 21

salary + benefits