This course will cover common termination payments, their calculation, tax and NICs treatment and changes in the treatment of payments from April 2018.
Please note: Materials for this course will be made available via an online platform, however a selection of this materials will need to be printed off and brought with you on the day. Login details for the online platform will be sent to you 10 days before the course start date. If you have any problems or questions, please email firstname.lastname@example.org.
Why should I attend?
Termination payments are a complicated area of payroll with numerous (and sometimes) interchangeable terms describing different kinds of payments which attract a variety of tax and NIC liabilities. The payroll department is usually called upon to navigate through this labyrinth.
From detailing the variety of common payments which form part of a termination package, this course examines their correct tax/NIC treatments and their correct application in a variety of circumstances, from redundancies to contractual breaches, retirement and death in-service.
What will I learn?
During this training session you will understand what payments are due in which circumstances: how they are calculated, whether they are liable to statutory deductions or are partially or wholly exempt, how HMRC interprets contractual entitlement versus tax free payments, the net amount due under the ‘Gourley Principle’, and what PAYE procedures must be followed.
This course clarifies what the law is and how to correctly calculate final payments and the proposed new rules from April 2018 relating to PILONs and redundancy payments.
- The ‘Gourley Principle’ - tax and NICs treatment
- Restrictive covenants and PILONs
- Redundancy payments
- Breach of contract
- Injury and disability
- Compromise agreements
- Holiday pay
- Timing of payments
- Benefits under a retirement benefit scheme
- Loan write-offs
- Benefits In Kind (BIK)
- Recording and reporting requirements
Creating a payroll procedures manual:
Termination Payments are a complicated area of payroll with frequent legislative updates and one which require close collaboration with HR and finance. An organisation’s procedural documentation should remain updated to account for these changes and internal practices.
This course covers the theory and practicalities that need to be considered when designing a procedures document that all payroll departments need to ensure all statutory and contractual obligations are managed efficiently and professionally.
Holiday pay and leave:
Outstanding holiday pay is a common component of termination packages. This course provides a detailed explanation of the impact of case law and statutes on holiday pay and the differences between the different types of annual leave. Delegates are taught how to apply these parameters and calculate holiday pay and leave entitlements in a range of circumstances
Pricing and booking information
The CIPP can offer in-house delivery on most training courses.
In-house delivery can be very attractive for organisations as they can train large numbers of employees* at a reduced rate, without the additional associated costs, such as travel and 'lost time'.
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*Minimum number of delegates apply