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P35 2017

As we approach the end of year, we suggest that you ensure that all your employees are registered with the Revenue Commissioners in advance of the year end. This year the Revenue Commissioners have been contacting all employers who had employees returned on their 2016 P35 return who were not registered with Revenue as being their employees.

Failure to have all employees registered could result in you being selected for audit and/or fines.

For smaller employers who may not process their payroll on a regular basis it is important to check the tax certificates that you have for your employees to identify if there are any issues that could lead to difficulty when preparing you P35 and cost you in excess of what you should pay at the end of the year.

In particular you should check the following;

  • That you have PPS numbers for all employees 
  • That you have a tax certificates for all employees including family members 
  • That the tax certificate that issue show tax credits, Standard rate band and USC bands and are not Nil certificates 
  • That USC is not marked Exempt if employees have income in excess of €13,000 for the year.

If employees have been in receipt of Illness benefit from Social Welfare the employer is obliged to operate tax on this through payroll and return this on the P35 for 2017. This will change in January 2018.

LPT

Please check your employee’s tax certificates to ensure that you have picked up on amended tax certificates that may include LPT to be deducted via payroll. Employers are obliged to collect this tax from the employee and pay over with the P30 return. Failure to do this could result in the Employer having to pay the liability for the employee. This applies in particular to employers who may not download tax certificates on a regular basis.

For further details of P35 returns, please contact Rose Bracken, Payroll Manager.

Return to Payroll Newsletter - Winter 2017