S.I. No. 559/2001 - Income Tax (Employments) (Consolidated) Regulations, 2001

• (2) Any tax which is to be remitted to the Collector-General under paragraph (1) of Regulation 39, shall be remitted within 14 days of the date on which the Collector-General first makes application therefor.

PART 7 Contributions by Employees to Certain Superannuation Funds and Schemes

Interpretation (Part 7).

41.

• (a) an ordinary annual contribution, or any other contribution treated by the Revenue Commissioners, as respects the year in which it is paid, as an ordinary annual contribution paid in that year, allowable by virtue of section 774 or 776 of the Act, as a deduction from such emoluments for the purposes of assessment under Schedule E, or

• (b) by virtue of section 471 of the Act, allowable as a deduction from such emoluments for the purposes of assessment under Schedule E.

Deduction or repayment by reference to superannuation contribution.

42.

PART 8 Special Provisions where Employees are in Receipt of or are Entitled to Receive Certain Benefits Payable Under the Social Welfare Acts

Interpretation (Part 8).

43.

“relevant period” in relation to an employee who is absent from work and who in respect of any part of that absence receives, or is entitled to receive, a taxable benefit, means the period commencing with the date on which such taxable benefit first becomes payable to the employee and ending on the earliest of the following dates, that is to say:

• (a) the date of cessation of employment,

• (b) the 31 December following the employee's return to work, or

• (c) such other date as the inspector may specify;

“taxable benefit”, in relation to an employee, means any amount payable under the Social Welfare Acts in respect of—

• (a) disability benefit, and

• (b) injury benefit which is comprised in occupational injuries benefit,

which is chargeable to income tax by virtue of section 126 of the Act.

Tax due in respect of disability or injury benefit

44.

• (a) any payment of emoluments made by the employer to the employee in the relevant period shall be treated as if it were a payment to which Regulation 19 applies,

• (b) (i) where the employee is entitled to receive payment of emoluments during such absence from work, the employer shall, in relation to such payments made by him or her to the employee during the relevant period, reduce the tax credits and standard rate cut-off point for Week 1 or Month 1, as may be appropriate, as specified on the tax deduction card held by the employer in respect of the employee by —

• (A) such amount as the Revenue Commissioners, by general notice or otherwise, direct, or

• (B) such other amount as the Minister for Social, Community and Family Affairs may notify to the employer in relation to the employee, and

• (ii) the reduction of the employee's tax credits and standard rate cut-off point in accordance with the provisions of subparagraph (i) shall be treated as if it were a determination or, as the case may be, an amended determination of tax credits and standard rate cut-off point by the inspector but the inspector need not issue a notice of the determination or the amended determination, as may be appropriate, to the employee or a certificate of tax credits and standard rate cut-off point, an amended certificate of tax credits and standard rate cut-off point, a tax deduction card or an amended tax deduction card, as may be appropriate, to the employer,

and

• (c) where, on any usual pay day during the period of absence from work which falls within the relevant period, the employee is not entitled to receive payment of emoluments from the employer, the provisions of Regulation 26 shall not apply in respect of such pay day.

PART 9 Miscellaneous

Revocations.

45.

Schedule

Explanatory Note

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These Regulations, which come into force on 1 January, 2002, revise and consolidate, subject to certain changes, the existing regulatory provisions which prescribe the manner in which the deduction of tax from salaries and wages under the “Pay As You Earn” system operates

The main changes made are —

• (1) With effect from 1 January 2002, the special system for casual employees is abolished.

• (2) With effect from 1 January 2003, employees who do not supply their employer with a personal public service number (PPSN) will be subject to tax under the emergency system at the higher rate of tax.

• (3) There will be an obligation on employers paying their liability by direct debit to review the adequacy of the payment from time to time and make adjustments as appropriate.

Part 1 of the Regulations contains definitions. It also covers the instance where an employee works under the management of a person who is not his or her immediate employer. In such circumstances the person under whose management the employee works is deemed to be his or her employer.

Part 2 provides for the maintenance of registers of employers and of employees. The register of employers is to be kept by the Revenue Commissioners and registers of employees by employers. In certain circumstances where an employer employs only one domestic employee there is no obligation to keep a register.

Part 3 requires inspectors of taxes to determine the amount of tax credits and standard rate cut-off point appropriate to the employee, to furnish the employee with a notice of this determination and with a certificate of tax credits and standard rate cut-off point and also to notify the employer of the amount of tax credits and standard rate cut-off point. An employee may appeal to the Appeal Commissioners any determination of tax credits and standard rate cut-off point made by an inspector. Certificates of tax credits and standard rate cut-off point for any particular year will have effect for each subsequent year for which taxpayers' personal circumstances and relevant tax credits and reliefs remain unchanged.

Part 4 concerns the deduction and repayment of tax under PAYE. Deductions and repayments are to be made by reference to cumulative emoluments and cumulative tax credits and standard rate cut-off point as specified on the employees tax deduction card. The required particulars are to be entered on the tax deduction cards on the occasion of every payment of emoluments. There are provisions regarding changes of employment and for deduction of tax on an emergency basis where the employee does not produce a certificate of tax credits and standard rate cut-off point or his or her personal public service number. At the end of each year employers are required to give every employee a certificate showing his or her emoluments, tax credits and standard rate cut-off point and the net tax deducted.

Part 5 deals with payment and recovery of tax deducted under PAYE. Employers are required within 14 days from the end of every income tax month to pay over to the Collector General all tax which they were liable to deduct under PAYE, less any tax which they were liable to repay, during the month.

The Collector General may authorise an employer to make remittances of PAYE/PRSI at longer intervals (not exceeding one year) than the normal monthly remittance basis. Where an authorised employer arranges to pay by direct debit he or she must ensure that the amounts paid are sufficient to cover ongoing liability. The Collector-General may also terminate such authorisation.

Within 46 days from the end of the year employers are to send to the Collector-General returns, in the appropriate form, showing total emoluments paid to the employee during the year and total net tax deducted.

Part 6 provides for the making of assessments on employees in special cases and, where assessments are not made, for supplying employees with statements of their liability. It also provides for an appeal by an employee against an assessment by an inspector; and for adjustment where underpayment of tax occurs.

Part 7, which provides for net pay arrangements, requires an employer when applying PAYE to an employee's earnings to make any necessary deduction or repayment of PAYE income tax by reference to the amount of the earnings reduced by the amount of any superannuation or Permanent Health Insurance contributions which relate to and are deducted from those earnings and which are allowable for income tax purposes.

Part 8 sets out the manner in which any tax due in respect of disability benefit and injury benefit is to be collected from recipients in employment.

Part 9 repeals all previous Regulations relating to the PAYE system.