P45 Explained

Form P45 is a (3-part) physical certificate or document given to you by your employer, when you leave employment, to indicate that they have correctly deducted tax (PAYE), PRSI & USC from your pay in accordance with the instructions provided by Revenue.

A P45 certificate shows the following:

  • Gross pay YTD (Year-To-Date) at leaving
  • Tax deducted YTD at leaving
  • PRSI deducted YTD at leaving and number of insurable weeks
  • USC deducted¬†YTD at leaving
  • The tax credits, standard rate cut-off point and USC cut-off points in operation
  • Illness Benefit included in pay (if applicable)
  • Local Property Tax deducted (if paying through payroll)

A P45 is a very important document and can be used for:

  • Getting a refund of tax during unemployment (if applicable)
  • Claiming Social Welfare benefits
  • To give to your new employer in order to avoid being put on emergency tax

IF YOU DO NOT GET A P45 WHEN LEAVING YOUR JOB, ASK FOR IT. (Source: Revenue)

 

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All the best,
The Team at Jefferson