quick SCSB query

formula AXB/15 - c

B is no. of years. If i have 14.5 years service is this calculated using 14.5 or it it rounded up or down.

Thanks.


(scrimping every penny here)

I think it's completed years.....

"Full years service" is what I seem to find when I search.

thanks lads

Remember here to include all renumeration in average salary for prior 3 years. People sometime use their p60 figures but this will exclude pension.
Averge salary include salary, BIK's etc. All Remember if stock options were exercise in the last 3 years to include these in salary calculation.

so add employers contribution to pension as earnings?

Also If i go in may and am on JS fo rthe rest of the year how does a the lump sum come into calculatating a rebate at the end of the year or is it added as income for the year. (i would have apid some tax at 41% til may)

EG (made up figures)

earnings to May 15k
JS until Dec 6k
R lump sum 50k

In calculating a rebate is total earnings 71K ? ie no point looking for tax back

No- I don't think you'd add the employer's contribution to your pension as earnings.

Re tax refunds- the main point to check is if the lump sum received on redundancy is taxable. The statutory part is not taxable so it won't be included as earnings for the year. If you get more than statutory, that would be classed as earnings.but you can claim SCSB or another exemption to reduce the taxable amount. Most of the Jobseekers Benefit will be taxable (a small amount is exempt) so it will be included as earnings.

These links may provide useful information:

[broken link removed]
http://www.revenue.ie/en/personal/tax-refunds.html
http://www.revenue.ie/en/tax/it/leaflets/it21.html

Yes you would include employer contribution in calculating SCSB. You include total income & benefits recieved.

I am unable to find a link confirming Arch2's advice re the need to add employer's pension contributions.

This statement is taken from the Revenue link [it21.html] provided in my prior response:

* Remuneration includes gross salary (before employee's contributions to an approved pension scheme), benefits-in-kind, less Revenue agreed flat rate expenses.

Click to expand...

My understanding of employer's pension contributions is that they are not treated as taxable income (or gross salary) in the hands of the employee. Therefore they are not part of remuneration and would not be included as part of remuneration for the purpose of the SCSB formula.

However, if I am incorrect in this understanding I'd appreciate if a revenue link could be provided.