COMPLIANCE AND TERMINATION PAYMENTS

The calculation and treatment of payments to leavers is often very emotive especially where the employee is not leaving the organisation voluntarily. As with many other areas not only does legislation impact on the treatment of any payments but so does case law and this is continuously evolving.
Paris and Parks can guide you through the process ensuring that the correct records are kept and that the correct treatment of the payments in respect of tax and NICs is applied assisting in discussions with HM Revenue and Customs where appropriate.
Many organisations have had redundancy policies in place for many years and yet have not sought Revenue agreement for the scheme and neither are the full implications of the treatment of the different elements that make up a termination payment always well understood.
Often much reliance is made on phrases within agreements that will not stand up to a challenge from HM Revenue and Customs and to seek payment of underpaid tax and NICs from an ex employee after the event is difficult to execute which adds to the cost of the termination.
Also See:
HR Compliance,
Payroll Compliance,
SOX Compliance,
Compliance Risk,
Reducing Audit Costs.