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What paperwork with a redundancy payment?

16 replies

KatyMac · 01/10/2008 15:12

Not a payslip obviously
There is no pay in lieu of notice - all wages paid up to date

Is it just a P45?

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KatyMac · 01/10/2008 16:21

I phoned Acas who don't know

So I phone HMRC who will reply in a week or so

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flowerybeanbag · 01/10/2008 18:22

I'm no payroll expert but I would certainly issue a final payslip to include redundancy pay. You would put other statutory payments not classed as wages on a payslip - SSP, SMP and so on, so why would you not include redundancy pay on a payslip?

KatyMac · 01/10/2008 18:27

SSP SMP etc actually go on your P11 which is how (my) payslips are produced

Redudancy isn't entered on the HMRC CD ROM at all

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flowerybeanbag · 01/10/2008 18:37

No idea about the cd rom just talking from the point of view of someone who has received payslips. I'd always expect to see whatever pay I'd received that month, which may or may not be comprised partly in the form of a statutory payment, in an itemised payslip.

KatyMac · 01/10/2008 18:39

But the CD ROM produces the payslip - so if I can't put it in it won't show it

I could do a manual one with just the redundancy on it

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KatyMac · 01/10/2008 18:40

She has a letter saying how much redundancy she is getting....will that do?

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LittleMyDancingForJoy · 01/10/2008 18:42

I got a payslip when I was made redundant, but it had been produced manually, I suspect they came up against the same problem as you have.

I think you would need to have some sort of paper record.

LittleMyDancingForJoy · 01/10/2008 18:42

Mine had maternity pay on it as well, so maybe just put them all on the same thing?

flowerybeanbag · 01/10/2008 19:22

No way of making any kind of manual addition? As an employee I'd want a payslip if possible for my own records so if you can do a manual one, do it. A payslip is an official record of payments paid whereas a letter saying what an employee will be getting for something doesn't quite cover that in the same way iyswim?

KatyMac · 01/10/2008 19:23

I guess I can type one

I was a bit that ACAS/HMRC couldn't answer my question tbh

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flowerybeanbag · 01/10/2008 19:30

Acas wouldn't know I wouldn't have thought, that's not their thing really. Resolving disputes, fine, great advice but other than that I wouldn't bother with them. I've seen them get it wrong way too often for even very basic employment law stuff when people on here have asked them things, so I wouldn't even bother with a payroll question which is way out of their remit really.

HMRC not being able to answer is absolutely shocking though, I agree. For an organisation who supposedly know what they are doing this should be a basic query I'd say.

KatyMac · 01/10/2008 19:37

ACAS has been very helpful sorting out the notice & calculating it - It's been a very horrid time for everyone

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nannynick · 01/10/2008 20:03

I think you have to give the employee something that states how their redundancy pay was calculated - so based on Age, Length of Service, Max weekly entitlement.

I would expect that the JobCenter will want to see some kind of letter from the employer stating that the employee was made redundant, not sacked - so that your ex-employee can start to claim Contribution Based Jobseekers Allowance. I recall taking a very basic letter from my employer to the JobCenter when I signed-on following being made redundant.

Not sure how to resolve the payslip problem. I don't think redundancy pay is taxed. Not sure about NICs/Employers NICs though. I take it HMRC's Employers Helpline were not very helpful regarding that.

HMRC: Redundancy Factsheet may be of help. It says employee does not pay Tax or NICs on redundancy payment, subject to it being less than £30,000. If you have already give employee P45, then the Factsheet says that you should send a letter to HMRC stating the amount of redundancy pay paid, date and any tax deducted - a copy of this letter should be given to Employee.

Don't know if any of that is of any help, or not.

KatyMac · 01/10/2008 20:18

Thanks Nick - she has the letter, stating, redundancy, how much & how I calculated it

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flowerybeanbag · 01/10/2008 20:22

That's good ACAS were able to help you. My opinion of them is not high unfortunately due to the amount of time and number of occasions I've had to put right incorrect advice they've given, sometimes with a serious impact on the employee in question.

But I'm happy to acknowledge that they are great for dispute resolution and have obviously been able to help you with your queries which is brilliant.

KatyMac · 02/10/2008 08:12

I think as with all helplins when you get someone good they are fab & when you get someone poor they are terrible - there seems to be little or no middle ground

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