Just got retrenched ):

Fudzy said:
And tax? Can you take the money in instalments or is it a lump sum?
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Lump sum would be better. If you take it in installments then it might be classed as an annuity in which case you'd be totally screwed for tax purposes.

Pitbull said:
Depends, the company will normally give you an option lump sum or instalments.
You have 1 tax benefit on your retirement fund if you are retrenched, you can only use it once in your life no matter how many times you get retrenched. There is a lower tax rate for retrenchments I'm pretty sure of that. I paid very little and I'm even getting a crap load back from SARS too tthis year. Just waiting for the bloody audit again.
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Yes. s5(1) and s7(4A) I think...too lazy to check now. Basically the lump sum gets taxed at ~your usual tax bracket, i.e. the provisions are designed to prevent you from getting pushed up brackets due to the lump sum. That once off thing is s(10)(1)(x)...R30 000 once off exemption subject to a few requirements.

Disclaimer: All of the above is pure speculation & probably wrong.
 
In 1995, I told my CEO, those who can't do, teach, those that can't teach, become CEO's. He then threatend retrenchment if I didn't get my attitude right. I told him to "kies n vinger"! I quit! A month later that company retrenched the whole department! The board fired the CE0 hehe. Ok so I missed the package but what was sweet was I pitched up at an interview and found the CEO a$shole there waiting his turn. We were both interviewing for the same job. And yep I got it and it was for more money! Years later I saw the douche bag..he was still flip flopping one job after another. What saved me was my positive attitude and consistent proven work ethic! Oh, last thing, these experiances often have a good lesson in them. Before going to work for a company, research it, avoid mickey mouse operations with idiots at the helm. If you join such a company, buy vaseline tubs! Eventually you'll get shafted. Good luck by the way!
 
Does anyone know what I need to do to ensure that my package doesn't get taxed? Do I need to take action or should my employer do what needs to be done?

On the up side it looks like I will step from this job into another so things are looking up.
 
BobsLawnService said:
Does anyone know what I need to do to ensure that my package doesn't get taxed? Do I need to take action or should my employer do what needs to be done?

On the up side it looks like I will step from this job into another so things are looking up.
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The company needs to inform SARS & apply for some taxcertificate, then the money wont be taxed at all. Not sure if there is a limit as to how much is not taxed...
 
ChilliGirl said:
The company needs to inform SARS & apply for some taxcertificate, then the money wont be taxed at all. Not sure if there is a limit as to how much is not taxed...
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R30 000

The rest gets taxed according to your average tax rate over the last three years, or something complicated like that.

But you have to get the directive from SARS.
 
Jola said:
R30 000

The rest gets taxed according to your average tax rate over the last three years, or something complicated like that.

But you have to get the directive from SARS.
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I had to retrench someone in November '09 :( I had to apply with SARS as company owner for the directive before paying out the person's package. So that was delayed by 2 weeks after the person left, coz I was told with out the directive the money MUST be taxed(delays due to SARS).

The amount was under R30k.
 
ChilliGirl said:
I had to retrench someone in November '09 :( I had to apply with SARS as company owner for the directive before paying out the person's package. So that was delayed by 2 weeks after the person left, coz I was told with out the directive the money MUST be taxed(delays due to SARS).

The amount was under R30k.
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Do you have more details about the directive? I'm not 100% confident that our HR dude is going to be on top of this.
 
BobsLawnService said:
Do you have more details about the directive? I'm not 100% confident that our HR dude is going to be on top of this.
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Contact your local SARS office. Then go collect the form that they tell you to get & take it to the HR dude to complete. Then take it back to SARS. Then you hurry up & wait.

NOTE - Your last month's salary will be taxed as normal with tax, UIF etc being deducted.
 
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Thanks. I'll be accepting a new position on Monday and the severance package is going to be like a bonus.

Looks like it turned out alright.
 
Ahem. Female ladybits are more of a hobby than a career but if I could make as much money interacting with them as I do at my job I certainly would.

So if any MyBB sub ladies are looking for a dom my rates are
good. (-:
 
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Damn...glad you got bac on your feet so quickly. My dad was retrenched once and it was very hard during my matric exams...we eventually made it through that tough time...it definately builds character and he's been a great man eversince...we are going through the same crap out the big company i'm working for...basically we were told, you are safe for the next year...end of this month our names would have been matched to NEW jobs in the NEW structure...everything else IT related has been outsourced to 3 SP's...

I told my wife I'm not in the mood to work here anymore, as through all this comotion my boss is on holiday overseas and everyone is at the head offices in JHB working on some project... start tomorrow and for the next 18months I must travel 260km' round trip to JHB twice a week for work. I"m in IT only about 2 years now and we are looking to make a move back to Cape Town by next year...eish reading other people's stories makes one stress..but then again, one can't live preparing for a moment like this.
 
I just got lucky that a company I worked for a few years ago is looking for people. The timing was really miraculous. Other than that the market is flat as a pancake. Had a few agency interviews and that is about it. Nobody wants to pay any more than R15k.
 
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