Employers end of year Payroll Returns: what do I need to know?
As an employer, at the end of each year you must file payroll returns with the Revenue Commissioners detailing how much tax you and your employees owe.
For the year end December 31st 2010 the deadline to do this is the 15th February 2011. You need to complete two returns by this date:
· End of year revenue payroll returns
· End of year summary for employees
Revenue payroll returns
There are two main forms within this section which must be submitted to Revenue by the 15th February 2011:
- P35 declaration
- P35L
1. P35 Declaration
The P35 declaration is a summary form showing the total amount of payroll tax and levies payable by the employer over the year. Also included on this form is the total amount of payments made to Revenue already to cover the liability. The purpose of the P35 is to calculate the balance due or repayable.
2. P35 L
The P35L must also be submitted to Revenue by the 15th February 2011. This form should list all employees (including any employees who left during the year) who were employed by the business during 2010. The gross pay, tax and levies for each employee should be detailed. In the case of employees who have commenced employment or ceased employment with you during 2010 be sure to include the relevant dates. Finally, the PRSI class for each employee needs to be indicated along with the number of weeks the employee was employed under that class.
Employee returns
As an employer you also have a responsibility to provide end of year information to each employee. This is provided in the form P60 which employees are legally entitled to receive by 15th February 2011. This form summarises the taxable pay and deductions of the employee for the year. In previous years the P60 forms were required to be completed on pre-designed Revenue paper. Revenue no longer issue these forms and instead the P60’s should be printed on normal stationary.
You should also give the employee an income levy certificate for 2010. This certificate should show the gross pay of the employee liable to the income levy and the amount of income levy deducted. This certificate should be signed by you the employer.
If you have any questions at all in relation to fulfilling your obligations when it comes to the p35 deadline please don’t hesitate to get in contact
