14
Sep
Every employer must report payroll information to Revenue at the time they pay their employees.
The Revenue Payroll Notification (RPN) has replaced the P2C. Employers must retrieve an up to date RPN for each employee before the payroll is run. This ensures employers are using the correct credits and cut-off point for their employees.
The RPN provides employers with the necessary information to deduct from the employee the correct:
- Income Tax (IT)
- Universal Social Charge (USC)
- Local Property Tax (LPT).
It shows:
- Tax credits
- IT and USC cut-off points
- Any previous pay, tax and USC deducted from 1 January (unless the certificate is on a week 1 or month 1 basis)
- IT and USC exemptions
- The amount of LPT to be deducted, if applicable.
You must always use the most up to date RPN when calculating employees’ pay and deductions.
If you are unable to retrieve an RPN, you must operate the emergency basis on your employee’s pay.
Commencing an employment
Employers are obliged to register new employments, in all circumstances except where it is the employee’s first employment in the State. Employers can register the employment with Revenue by submitting a new RPN request for that employee.
Revenue Payroll Notifications (RPNs) are available in real time for new employees. This removes the need for emergency tax in most cases.
Emergency tax only applies where an employee:
- does not have a Personal Public Service Number (PPSN)
- is working in the State for the first time.
Employees must register their first employment in the State, using the myAccount service. Once the employee is registered, employers can request an RPN.
An RPN must be requested for any new employees before you pay them.
Ceasing an employment
You must include the date of leaving on the final payroll submission if an employee:
- leaves
- is granted a career break
- dies while in your employment.
This notifies Revenue that the employee has ceased employment.
It is important that you include the date of leaving on the final payment. This ensures that a new employer will receive the correct details, from 1 January on the RPN issued to them.
If you delay submitting the date of leaving, the correct tax credits and standard rate cut-off points will not be available. This means that the individual may overpay tax and Universal Social Charge (USC), as a Nil RPN will issue to the new employer.
Payroll submissions
On or before you make a payment to your employee, you must report the payroll information to Revenue.
What information will you report to Revenue?
For each payroll submission, you must provide us with payroll information for each employee, including:
- amount of pay
- payment date
- amount of Income Tax, Universal Social Charge and Local Property Tax deducted.
If you as an employer are struggling to be compliant every pay period with the processing of the payroll for your business and the requirement of reporting it to Revenue, please contact us for a competitive quote on 094-9027426 or send us an email to [email protected].