I need to make a redundancy payment but need some advice on how to calculate the payment correctly.
We take it the payment has been negotiated and that it is only a matter of determining the tax treatment.
If it is a genuine bona fide redundancy, then the following tax treatment applies.
No tax will be payable on $11,341 plus $5,672 for each year of completed service.
The balance of the payment will be an Eligible Termination Payment.
The tax treatment will depend on the recipient’s age – refer to page 10 of our 2022 annual publication.