What Do You Mean You’re Not Giving Me a P45?
We’ve all heard the term – “given their P45” – when an employee is finishing with an employer (or being told they are finished with an employer!) but what will we say from January 2019 when P45s will be no more?
PAYE Modernisation will revolutionise the payroll system in Ireland
Rather than wondering if our PRSI contributions and PAYE/USC payments have been captured by the Revenue and Department of Social Protection, we will now be able to see the actual contributions made by our employers by logging onto MyAccount. This feature will be available during mid 2019 as per the Revenue Commissioners and their seminar in the South Court Hotel in Limerick last week.
Most employers are fully compliant with tax regulations in Ireland
However, there has been a portion of employers over the years who have acted above the law. The only real victim in this scenario is the employee and this isn’t good enough. It may not have immediate impacts on the employee. It may be in many years to come when the employee is applying for their State pension, that these non payments may arise. In more serious situations, it may result in the individual not receiving their full entitlement to their state pension. This is unacceptable.
Thankfully, PAYE modernisation will minimise the risk of non payment happening
There are seminars taking place all over the country. The Revenue Commissioners are on road trips nationwide explaining PAYE modernisation to employers all over Ireland. The seminars are relevant and well delivered. However, there won’t be any seminars given to PAYE employees.
Employees will have questions
Given the number of questions likely from employees, it is best that employers start to notify and educate their employees now. The terms P45, P60, P30, P35 are embedded in our DNAs. To no longer have any “P” forms is a huge deviation. Not having any P45s when leaving a company will be a change but one which will make the process more efficient. In fact, employees will have the ability to insert their own end date on MyAccount after finishing with an employer. This will make waiting for their P45 in the post a thing of the past. This can only be a good thing.
Paying emergency tax unnecessarily will no longer be a factor when changing jobs
At Aspire Recruitment, we ensure to remain at the forefront of upcoming changes that may impact employment legislation and regulations. We’re happy to discuss these upcoming changes. For more detailed and accurate information, take a look at the informative Revenue Commissioners website.