An employer engaging employees must register with the Tax Authorities, and follow the procedures for the deduction of Pay As You Earn (PAYE) and Pay-Related Social Insurance (PRSI) from employees at source. At commencement of employment, employees should be in a position to provide the employer with a Certificate of Tax Free Allowances showing, on an annual, monthly and weekly basis the amount that an employee can earn before PAYE Tax is applied. PRSI, at the rate of 5.50% up to a ceiling of IRœ22,300 per annum must be deducted from the gross salary and a further 2.25% per annum is payable for which there is no ceiling. In addition to the deduction made from the employee's income, the employer must make a PRSI contribution in respect of each employee of 12.2% on the gross salary up to an annual income ceiling of IRœ26,800. The tax year commences on 6th April.
As employers have primary responsibility for tax, an employer must ensure that where any additional taxable benefits are provided to an employee, the appropriate PAYE tax is levied at source.
Special rules apply as regards the provision of pension, and motor cars.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
As employers have primary responsibility for tax, an employer must ensure that where any additional taxable benefits are provided to an employee, the appropriate PAYE tax is levied at source.
Special rules apply as regards the provision of pension, and motor cars.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
