Operation of the PAYE system in Ireland

Taxation in the Republic of Ireland: PAYE, Deposit Interest Retention Tax, Capital gains tax, Corporation tax in the Republic of Ireland, Economic history ... Ireland, Economy of the Republic of Ireland1. Form P.12A
Before starting work, each employee must contact their local tax office and complete a form 12A. This calculates the credit due.

2. Notice of Tax Credit system
The inspector of tax will send out a notice to all taxpayers, setting out all the credit to each taxpayer

3. Tax Credit Certificate
A tax credit certificate is sent out to all employers, informing them of employees tax credit and tax rates. In the ABSENCE of a tax credit certificate, emergency tax must be deducted.

4. Tax deduction card –used by managers to keep a record of all payments and deductions made for each employee

5. P.60
At the end of tax year 31/dec each employer must issue employees with a P.60 form. This shows amount of pay, income tax and PRSI contribution made during the year.

6. P.45
If employee leaves during the year, their employers should give this to them. This form is also known as the “cessation certificate” and shows all pay, income tax and PRSI made by workers.

7. P.35
Is a document, prepared by an employer, which shows all income paid and all tax and PRSI collected by Tax office?

8. Form 12
At end of tax year this form is filled in, completed so then a detailed tax return is given to the Inspector of Taxes.

9. P. 21 – BALANCING STATEMENT
The tax office issues this; it compares the total tax paid by PAYE workers with the amount that should have been paid on his/her income. If there has been underpayment, tax must be paid within 3 months. If there has been overpayment there will be a tax refund.