Course description
Termination Payments
This course will cover common termination payments, their calculation, tax and NICs treatment and changes in the treatment of payments from April 2018.
Upcoming start dates
Suitability - Who 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.
Outcome / Qualification etc.
CPD: 3 points
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.
Training Course Content
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 £3000 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
Reviews
Average rating 5
Well delivered and particularly relevant in the current economic climate. Vera Cunningham MCIPPdip, Spirit Group Limited
I found the tutor to be very friendly and knowledgeable. Anne Anderson MCIPPdip, University of Stirling
Expenses
- Non-members price: £249.00 + VAT
- Members price: £199.00 + VAT
Continuing Studies
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 organisations 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. participants are taught how to apply these parameters and calculate holiday pay & leave entitlements in a range of circumstances
Request info
The Chartered Institute of Payroll Professionals (CIPP)
The UK’s leading provider of education for payroll. Leading the profession through education, membership and recognition. Established in 1980 as an official industry body, the Chartered Institute of Payroll Professionals (CIPP) is the only Chartered institute for payroll, pensions and reward...
Case Studies
COVID-19 - Updates from the CIPP
Read how the Chartered Institute of Payroll Professionals is responding to Coronavirus (COVID-19).
The pace of the course was excellent and Sylvia was really down to earth with her teaching style and approach.