Employers what you need to know this year

For thousands of small business owners across Ireland, February brings payroll and staff administration issues. Here we take a look at what you need to know to save time.

Firstly, if you employed any staff in 2013 you must submit a P35 form before February 15th 2014. Employers who don’t submit a P35 return by the deadline could face penalties of up €4,000 and you may also risk a possible tax audit. It is still possible to buy a bit more time if you have left it to the last minute however. You can extend the deadline to the 23rd of the month by filing online.

The P35 form gives details of all tax deducted from your employees during the year. Specifically it details all Income Tax, Employers and Employees PRSI and the Universal Social Charge. The form should include the names and details of all employees who worked for you during 2013, even those who are no longer working for you. If there is a shortfall in the amount you paid during the year, this will have to be paid along with the P35 Return.

A common error employers make with their P35 Return is using the wrong PPS numbers for Employees. If a PPS number is invalid, the P35 Return will be rejected by the Revenue Commissioners so it’s a good idea to check all employees PPS numbers well in advance of the submission date.

As well as submitting the P35 form it’s important to note that as an employer you need to provide a P60 to all staff who were in your employment on 31 December 2013. Anyone who left before this date does not need a P60 from you.

Constant changes within the taxation system over the last few years have meant that payroll has become one of the most challenging responsibilities businesses faces each year. To save precious time and money pay close attention to what is required or consider consulting a professional.

Date published 13 Feb 2014

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.