Hi There,
I am a little confused how to work out the tax amount on a redundancy payout - please could someone help me?
I was given 2 weeks notice with a payment of $3,553.15 an I got taxed $1,001.00.
Is this correct?
Hi @M_Jade93
Depends. If your redundancy was a genuine one, then some or all of the payment would be tax free.
Genuine meaning that the job doesn't need to be done anymore.
Check out this info on what a genuine redundancy is.
Here's some info from our website that shows the rates at which ETP's are tax free from a genuine redundancy.
If it wasn't a genuine redundancy, then it's taxed at either 17% or 32% dependent if you've reached preservation age or not.
This falls into the employment termination payment.
Have a look here for more info on tax rates for ETP's.
Hi @M_Jade93
Depends. If your redundancy was a genuine one, then some or all of the payment would be tax free.
Genuine meaning that the job doesn't need to be done anymore.
Check out this info on what a genuine redundancy is.
Here's some info from our website that shows the rates at which ETP's are tax free from a genuine redundancy.
If it wasn't a genuine redundancy, then it's taxed at either 17% or 32% dependent if you've reached preservation age or not.
This falls into the employment termination payment.
Have a look here for more info on tax rates for ETP's.
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