Republished: Applying for PPS Number for Employees that Work Abroad

If you have an employee(s) working and living abroad for an Irish Registered company you need to apply for a PPS number for them to pay both PRSI in Ireland as well as apply for Tax Exclusion Order (TEOs) if applicable. What you will need from your employee(s) abroad is:

• A clear, legible copy of their passport
• National Identity Card (if available)
• Birth Certificate
• Letter from the Employing Company confirming that the person is employed through an Irish company but working abroad
• Proof of Address abroad, e.g. a utility bill
• Completed application form (REG 1)

Regarding social tax and BIK, if there is a TEO (Tax Exclusion Order) in place, people placed in any country that Ireland has a double taxation agreement, will not have to pay the USC. However for countries without double taxation agreements, they will have to pay the USC.

A TEO in place also means no income tax is paid.

Before a TEO is in place employees are legally obliged to pay all taxes. This may be refundable once a TEO is in place however.

Are you entitled to a Health Contribution Refund?

The DSP provided information last week in relation to refunds of health contributions.

So, are you enitilted or not? 

You are not entitled if any of the following apply to you: 

• Your claim is in respect of contributions paid before 2008
• You earned more than €26,000 per year in any tax year between 2008 to 2010
• If you earned less than €26,000 and never earned more than €500 in any one week you would not have been charged the Health Contribution and there for no entitlement exists.  

You may be entitled if:

• You have earned less than €26,000 in any tax year between 2008 to 2010 and earned more than €500 in any given week during that period. 

 How can I confirm this?

• Your Total Pay (Section A) on your P60 must be less than €26,000 for all employments and you should have contributed at least 1 insurable week at subclass A1 (Section C) - also see How to Read Your P60
• If the above does apply to you, write to the the Dept of Social Protection,PRSI Refunds Section,
  Oisin House, Pearse Street, Dublin 2,and include your name, address, PPS number and your date of birth. 

 The amount of refund you receive will vary depending on the amount of Health Contribution paid.


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All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...

Tip 1: For iPayslip Users

Did you know that if you are having any trouble logging into your payslips, we have designed a number of information screens that pop to help you resolve your problem? 

Read them carefully in order to get your problem resolved quickly

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)


All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...

Tip 4: For iPayslip Users

Have a question on Irish Tax, PRSI, USC or maybe you are starting work for the first time and don't know what to do?

Visit the Information Centre link on your payslip page and type your question into the Search Box. There is a wealth of information there for you to read! And don't worry we update it regularly for you. Enjoy.

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)


All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...

Tip 6: For iPayslip Users

Did you know that if there is useful Help Section ink at the bottom of every  page once you are logged in.

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)


All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...

Need to understand the new 2012 USC rules?

The Universal Social Charge (USC) was introduced into effect on 1 January 2011 and replaced the old Health Levy (paid as part of your PRSI deductions) and old Income Levy which are abolished from that date.

The USC is a tax payable on gross income, including benefits from your employer, with no relief for pension contributions.

From 2012, your employer will deduct the USC from your earnings on cumulative basis.

It is deducted at 2%, 4% or 7% and thresholds (see below table) have not changed for 2012.  The only exemptions for paying the USC are an income of under €10,036 per annum (up from €4,004 in 2011).

Medical card holders are also liable for the USC but it is capped at 4%, i,e, they pay 4% on all other earnings above the 2% threshold and none at 7%. On receipt of a full medical card, you should notify Revenue immediately. Revenue will then issue a revised tax credit certificate to your employer. Any refund due will be automatically made by your employer.

2012 Rates (no change from 2011)

What does this mean for you?

It means there shouldn't be any under or over payments of USC as it is adjusted using the cumulative basis. 

There is now a USC Emergency Basis similar to the Emergency Tax Basis.  The Emergency Rate of USC is 7% and no cut-off points are allowed, i.e. all payments will have USC deducted at 7%.  This will be reported now on your payslip under "Status" holding both Tax and USC status, e.g., E / W, N / N, etc.

P45s & P60s now include your USC details - no USC Certs are issued anymore

P2Cs (tax certificates) will now contain USC rates and cut-off points

As with PAYE tax credits and rate bands, Revenue will notify employers of the USC rates and thresholds to be applied for all employees..


Visit this Revenue page for all details and useful documentation regarding the cumulative change.

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)

All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll... 

How to Read Your P60

Thought we would provide a basic guide for you on how to read your P60 as it is a document issued at this time of year and of course it now contains the USC figures which were once provided on a separate USC Certificate.

It is not hugely detailed but hopefully helps somewhat in terms of understanding the various sections.  There is no real official layout anymore for a P60 as different software may have slightly different layouts but the content sections will remain the same.

YourPayslip.ie will be updated in the coming weeks also so and we will let you know.  Also Payslip Presentations (employees can learn specifically how their payslip calculations works specific to their payroll) will be available from mid-late February so let us know if your interested at sales@jeffersonpayroll.ie.

In the meantime, click on the image below to see How to Read Your P60...

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)

All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...

What's happening my tax credits?

Despite our friends in Government indicating that Budget 2012 will not affect your net pay from an income tax perspective, you may notice a slight reduction in your tax credits (and consequently your net pay) due to the abolition of the "Service Charges" tax credit, i.e, waste collection.

Amounts are small as it was capped at €80 per year (€400 in tax credits by 20%) but just to make you aware.

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)

All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...

Possible USC Refunds

It is important that you understand that if you have employees conducting all of their duties outside of Ireland in a non-tax treaty country for 2011 and they have had USC deducted through an Irish payroll, they may be entitled to a refund of these deductions and be fully USC exempt for 2012. 

For full details and to see if it applies to you or your employees, please read this Revenue eBrief 82/2011.

Just to emphasise however, the figures as calculated through 2011 payroll will remain "as is" and any refunds should be sought from Revenue directly.

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)

All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...

Year End & Taxable Social Welfare Illness Benefit

P60s but "no" USC Certs

It may be obvious but to avoid any confusion or doubt it is important to remind you that  there is no separate USC Certificate issued with your P60 for 2011.  The USC details are incorporated into the P60 document. 

Avoid Paying Twice!

If you were processed through payroll for taxable social welfare illness benefit during the 2011 tax year, a letter should be sent by your employer on your behalf to the local tax office indicating the amount processed.

This is for the simple reason that Revenue do not output these separately on P60s / P35, unlike a P45.

The letter is to help avoid employee’s being double-charged when Revenue reconcile their records with the DSP (Dept of Social Protection) at Year End.

You can get automatic updates to this blog by entering your email on the right hand side, via Twitter (@jpireland) or Facebook (search Jefferson Payroll)

All the best,
The Team at Jefferson | 5 reasons (in 90 seconds) to outsource payroll...