As well as the emotional cost of a termination to the business owner and the individual in question, there can be significant tax costs involved. Practitioners will be increasingly called upon to provide advice on the correct tax treatment and other issues to be considered around termination payments. This paper covers:
- employment termination payments
- genuine redundancy payments
- superannuation aspects
- transitional termination payments, and
- other considerations such as:
- employee share plans
- payroll tax
- FBT, and
- excessive remuneration to associates.