Not all employees qualify for a statutory redundancy payment, even if a redundancy situation exists. If you're unsure, contact Revenue. They can also confirm whether the redundancy amount is exempt from tax, Universal Social Charge (USC), or Pay Related Social Insurance (PRSI).
If part of the redundancy payment is subject to tax, USC, or PRSI, and another part is exempt, create separate payments for each amount. If you need to process part of the payment under a different PRSI code, see the Process redundancy payments with different PRSI codes section.
Go to Company/Payroll, then select Payments.
Select New, then enter the details below:
Field
Action
Title
Enter the name of the payment, for example, Redundancy.
Type
Select Redundancy.
Tax
Select the check box if the payment is taxable.
Universal Social Charge
Select the check box if the payment is subject to USC.
Include in pension calculation
Select the check box to include the payment in the pension calculation.
PRSI
Choose one of the following options: • Apply Employee & Employer PRSI • Apply Employer PRSI Only • Apply Employee PRSI Only • Don’t apply PRSI
Apply Pension Related Deduction
Select the check box if the payment is subject to PRD. This option is available only when PRD applies to your software.
Factor
Enter 1.0000.
Multiply by the number of holiday periods
Don't select this check box. This applies only to weekly and fortnightly payrolls.
Formula
Ignore this field.
Select Save, then Close.
Process redundancy pay on an employee's timesheet
Go to Processing, then select Time and Pay.
Under Entry Mode, select Random, then select Continue.
Next to Employee, select Browse, then select the employee.
Locate the redundancy payment and enter the amount in Hrs/Val.
Enter any other pay details you want to record for this period, for example, overtime.
Under Leaving, in the TP list, select Yes to mark the employee as a leaver.
In the Date box, update the employee’s finish date if required.
Under Pay periods, check that the Insur. Weeks value is correct. Edit if needed.
An employee qualifies for an insurance week if they work any day, Monday to Sunday, in that week.
In Weeks Worked, enter the same number as Insur. Weeks.
Select Save, then select Cancel.
Process redundancy payments with different PRSI codes
If Revenue or the Department of Social Protection advises you to record part of the redundancy payment under a different PRSI code, complete these steps:
Process the first part of the redundancy payment
Go to Processing, then select Time and Pay.
Under Entry Mode, select Random, then select Continue.
Next to Employee, select Browse, then select the employee.
Locate the redundancy payment and enter the first payment amount in Hrs/Val.
Enter any other pay details you want to include for this period.
Under Pay periods, confirm that Insur. Weeks is correct.
In Weeks Worked, enter the same value.
Select Save, then select Cancel.
After you complete the normal pay run, proceed to the next section.
Process the second part of the redundancy payment in a bonus run
CAUTION:Always complete the normal pay run before processing a bonus run.
Go to Processing, then select Set Period.
Don't change the Period Number.
Select the Bonus Run check box, then select OK.
Go to Processing, then select Time and Pay.
Under Entry Mode, select Random, then select Continue.
Next to Employee, select Browse, then select the employee.
Under PRSI Code, select the relevant PRSI code.
Double-click the next available line in the Pay Element column, then select the redundancy payment.
Enter the redundancy amount in Hrs/Val.
Under Leaving, in the TP list, select Yes.
In the Date box, enter the employee’s finish date.
Select Save, then Cancel.
TIP:Closing a bonus pay period follows the same process as closing a normal pay period.
CAUTION: 
TIP: