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 these 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 [email protected]
Why you should 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.
The course is suitable for delegates that have the following suggested roles:
- Payroll supervisors
- Payroll managers
- HR managers
If you are responsible for the calculation of termination packages and/or require awareness of the tax rules applicable to these payments.
What you will learn
To equip you with an understanding of the various types of termination payments and their correct tax/NIC treatments to enable them to ensure their organisations administer such payments correctly.
- Identify which type of termination payment is due and know the tax and NICs treatment applicable
- Accurately calculate the payments due
- Be able to correctly record and report the various types of termination payments.
Outlining the contractual implications of termination payments
- Identifying the effective date of termination
- Summarising the factors determined by the contract of employment
- Explaining the correct treatment of benefits in kind as part of termination packages
Outlining the tax and NIC treatment of termination payments
- Identifying taxable & NICable components of termination payments
- Identifying tax and NIC exempt components of termination payments
- Applying the £30,000 exemption threshold correctly
Identifying the components of a Termination Payment
- Defining Restrictive Covenants
- Distinguishing between contractual & noncontractual Payments In Lieu Of Notice (PILONs)
- Distinguishing between statutory and contractual redundancy payments
- Defining ex gratia payments
Administer Post Employment Notice Payments (PENP)
- Identifying situations where PENP calculations are required
- Calculating PENP
Outlining correct practices for termination payments for death in service and retirement incidences
- Outlining the rules for contributing to UK and overseas pension schemes
- Summarising the rules for awarding termination payments associated with death in service
Prior learning required
So that you can get the full benefit from the subjects in this course, we recommend that you have attended some of the following:
- Introduction to PAYE & NICs
- Essential Additions to Payroll Basics
- Introduction to Payroll
- Introduction to Statutory Payments
Continuing your learning
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 & Finance. An organisation’s procedural documentation should remain updated to account for these changes & 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 & 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 & leave entitlements in a range of circumstances