A redundancy payment is different from a retiring allowance. Redundancy is when a termination of employment is the employer's decision.

Redundancy payments can be entered on a person's timesheet using the RED - Redundancy Payment code.

Redundancy payments are automatically taxed as Extra Pay (Emolument) and excluded from Earner Premium and Employer ACC Levies.

See Redundancy Payments on the Inland Revenue website for more information.