Sep 2016
11
In August Revenue issued guidance for the new Paternity Benefit which was introduced in respect of Births and Adoptions on or after 1st September, 2016.
Paternity Benefit will be liable for income tax but not PRSI or USC. All employees who pay their tax through the PAYE system will automatically have their annual tax credits and rate bands reduced by the amount of benefit paid. Employers and pension providers will be notified of the adjusted tax credits and cut-off points on their Employer Tax Credit certificates.
Paternity Benefit should not be included on Forms P45, P60 and P35L.
Paternity Benefit is payable at the minimum rate of €230 per week for two weeks and must be taken in one block. Although some employers can pay employees while on Paternity Leave, however this is not a requirement. In such cases, the Paternity Benefit should be paid to the employer. If you have any queries on the appropriate payments, please direct them to the Department of Social Protection.
Sep 2016
10
The Jobs & Pensions Service available from Monday 12th of September 2016 is a new online service for employees. Irish employees can register their new job (or private pension) with Revenue using the service.
The Jobs and Pensions service replaces the Form 12A, meaning employees must register their first job in Ireland using the service. After registering employment using the service a tax credit certificate will issue to both the employer (P2C) and employee.
The service can also be used by employees who are:
• changing jobs provided the previous job has been ceased on Revenue records, employees will be able to see when they log in if the previous job has been ceased
• starting a second job in addition to their main job
• starting to receive payments from a private pension
Access to the service is available in myAccount, employees must register to use the service.
Employers should:
• encourage new employees to register for myAccount
• provide new employees with the information required to register their new job (registration can be done in advance of the start date):
- tax registration number
- start date of the new job
- pay frequency
- staff number is one has been allocated
• no longer submit a P46 form where employees register their own job using the service
• continue to upload P45(3) as normal
• continue to issue P45s immediately on cessation of employment
• operate the emergency basis for PAYE & USC if a pay day occurs before receipt of either P45 or P2C
Further information on the service can be found in Revenue’s Employer Notice September 2016, which can be found here.
