A: In this situation you should apply emergency tax on the employees’ wages until the relevant information has been made available to you. If Revenue do not release credits/bands and USC rates via ROS there is usually a good reason for this.
One reason why credits may not be available; if this is your employees first Job in Ireland. If this is the case your employee will need to complete a 12A Application for a Tax Credit Certificate form. Once submitted to Revenue, ROS will update for the relevant credits etc. Your employee will receive the majority of emergency tax back when you process the next payroll period.
Revenue will sometimes release the employees tax credit information, but will put the employee on what’s referred to as a week 1/month 1 basis. This reduces the employees allowable credits and bands each month. Usually the reason behind this is that the Revenue have a query regarding the employees tax history to date.
If you would like help with getting your payroll set up please get in contact with us and we will put you in touch with your local office.
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