Follow this guide if you need to add a Termination (Redundancy) payment that includes a tax-free element.
Termination Pay Definition #
Setup > Pay Definitions> Add…
Select the Termination Pay Template (in GB – Payment Group) and click Add:

Add Pay Item #
Pay Item Editor > + Create Pay Item > Termination (Payment group)
Enter the required termination payment value and click Update/View Payslip.
The tax-free and any taxable amount will be shown on the payslip automatically:
