Ask a tax advisor on the topic of Severance pay

Severance pay after parental leave

September 1, 2009 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello,

my employer is reducing staff for economic reasons and therefore does not want to employ me after my parental leave. I have not worked during my parental leave - in total not for two years. However, I have started a new job today - as a marginal employee for the rest of the year.
I am a single parent and therefore in tax class one.
My question now is, if I receive a severance payment of around 40,000 euros - what deductions do I have to calculate here? Would the net result improve if the severance payment would be split between 2009 and 2010? Or does it not matter because of the fifth rule?
Thank you for your answer!
Kind regards

Dipl.BW/SB Ulrich Stiller

Dear advisee,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment in a first consultation as follows:

If you have no further income - even those that are tax-free but subject to the progression clause - then the following payout amount without taking into account a church tax arises:

With the fifth rule payout 40,000 euros
Without fifth rule 32,328 euros

You will receive the fifth rule if there is a concentration of income (which I cannot assess) and the severance payment is made in ONE calendar year.

Sincerely,

Ulrich Stiller
Tax advisor