The below are some of the important items Revenue have issued notice about for Year End that you should be aware of. These will be provided in 3 posts to keep them short.
- 2017 Employer Tax Credit Certificates (P2Cs)
- 2018 Employer Tax Credit Certificates (P2Cs)
- Universal Social Charge (USC)
- USC Exemption on P2Cs
- myAccount Option
Ceasing use of 2017 Employer Tax Credit Certificates (P2Cs)
Revenue will cease issuing 2017 P2Cs with effect from 1 December 2017. An exception to this will be for employees/pensioners commencing employment or pension, where the commencement is notified to Revenue in the period from 1 December to 31 December, Revenue will continue to issue P2Cs through ROS to employers/pension providers until end-December 2017.
Issuing of 2018 Employer Tax Credit Certificates (P2Cs)
In December, Revenue will issue 2018 P2Cs to employers/pension providers for all employees/ pensioners, advising the rates and thresholds applicable from 1 January 2018.
Revenue is requesting, where possible, to hold back running 2018 payrolls until you receive the 2018 P2Cs.
In the situation where an employer/pension provider has not received 2018 P2Cs in time to run January/February 2018 payroll(s), employers/pension providers should continue to use the 2017 P2Cs for tax deductions. The USC information on our website – see ‘Employing people’ – includes updated guidance.
Employers/pension providers should take care when uploading the 2018 P2C data so as not to upload it to 2017 payroll in error. The ROS mail notification about the 2018 P2Cs will explicitly reference that they are 2018 P2Cs.
Universal Social Charge (USC)
As announced in Budget 2018, the rates and thresholds of the USC are changing with effect from 1 January 2018. The USC information on our website – in ‘Jobs and pensions’ and ‘Employing people’ – has been updated to take account of these changes.
USC Exemption on P2Cs
Where Revenue estimate (generally based on previous year’s earnings) that the employee’s/ pensioner’s total annual earnings (from all USC-able sources) will not exceed the USC Exemption threshold of €13,000, the USC exemption will be stated on the P2C.
However, where it is known that an employee’s/pensioner’s pay for USC purposes will in fact exceed the €13,000 threshold, we ask payroll to advise the employee/pensioner to contact Revenue to have a revised tax credit certificate (P2C) issued.
This can be done by individuals online using myAccount (by selecting ‘PAYE Services’) or by contact with his or her Revenue office. This will avoid a situation where the employee/pensioner has an under-deduction of USC at the end of the year (where the exemption is exceeded, USC becomes payable on all income)
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All the best,
The Team at Jefferson