Information on P45s and P60s
P45: If you leave your employment your employer must give you a P45. This is a statement of your pay and the tax and PRSI to date deducted by your employer. It is a very important document and you need it if:
- You are changing job – to give to your new employer in order to avoid paying emergency tax
- You are unemployed – to claim a tax refund, to claim social welfare benefits
If your employer does not give you a P45 you should ask for it.
P60: At the end of each tax year your employer must give you a P60 which is a statement of your pay and of the tax and PRSI deducted by your employer during the year. The P60 has two parts and it is an important document. You need it to send to the tax office to claim a statement of your tax liability (P21) at the end of the year or if you need to claim a benefit you would send the second part to the Department of Social Protection as evidence of your paid PRSI contributions.
You can inform your local tax office if your employer or former employer does not issue you with a P45 or P60.
If your employer does not issue you with a P60 or a P45 it may be that you have not been registered for PRSI by your employer. It also could be that you have been registered but your employer has not paid the PRSI contributions which are due or has not paid the correct amount. An employer is required by law to register all employees for PRSI, pay the correct contributions, maintain accurate records for all employees and to produce these records when requested by social welfare inspectors. If an employer fails to do so it can result in penalties, prosecution or both.
Your employer is legally obliged to provide you with a payslip that details the tax and PRSI deductions and PRSI contributions made on your behalf.
If you are still working with your employer you can complain in confidence (at your local social welfare office) and your name will be kept private. If it is proved that your current or former employer did not pay PRSI on your behalf, the employer may be forced to back-pay your PRSI contributions.
For your own security it is important that your employer pays your social insurance contributions. Being included in the PRSI system ensures you get your rights in relation to social welfare payments if you become unemployed, ill, if you are injured in work, if you take maternity leave or apply for a pension.
You should report the problem to your local Revenue office. Details of your local Revenue office can be found by entering your PPS Number at the ‘Contact Locator’ link at www.revenue.ie
Provided that you did not consent to the employer not paying contributions on your behalf you have not committed an offence. If you report an employer that has failed to pay contributions it may be possible that the inspectors can force the employer to back-pay your PRSI.
There are various circumstances when you may get a refund of tax you have paid:
- Your employer is obliged to deduct tax at an emergency rate if he/she has not received your Certificate of Tax Credits or a P45 from a previous employer. Once the employer receives either of these documents he/she can calculate how much tax they should be deducting from your wages. The employer can at this stage refund the amount of tax that you were overcharged
- After each Tax Year (after December 31st) you can ask Revenue to check if you paid too much tax in that year. You can do this by submitting your form P60 to your local tax office and requesting an end of year review (P21) for that year.
- If you have been unemployed for 4 weeks or if you are leaving Ireland you may also get a tax refund. The relevant form is Form P50 which is available from your local tax office and www.revenue.ie.