P45 not processed by Employer - what next?

Bo Malicious

Hi All,

I posted a query elsewhere and it was suggested that I link it here as it pertains to accountancy. Essentially, my boss never processed my P45 and Im at a loss as to what I should do, if anything. Would really appreciate some input from those more familiar then I.

thank you.

Heres the link
[HTML]http://www.boards.ie/vbulletin/showthread.php?p=54619466#post54619466[/HTML]

Bren1609

To start with, your previous employer is legallly obliged to issue a P45. You can pursue it through the labour commission or dept of ent trade & employ. Im not sure which one but there is a procedure.

Did you actually ask your previous employer for your P45? If so, ask again by sending them a fax, e-mail or letter. Keep a copy of this.

Did you receive payslips when you were working for them? How long were you working there and when did you finish?

Bo Malicious

Bren1609> First of all, thanks for taking the time to respond. However, Ive confused you, sorry. The situation is a little more complicated then what you thought - its not a case of seeking a p45 that an employer is reluctant in giving but a case of a p45 not being processed initially or at all and thus not being taxed. Below is copied from my post - linked above. Looking forward to hearing your thoughts.

I recently left my job of over 1 year. At the beginning of my employment I handed in my p45 to my boss. However, the company I worked for never processed my p45. I reminded them of this again and again as the months went on. I suspected they weren't processing it on purpose - perhaps to avoid having to declare me as an employee to save money on insurance etc. (other long term employees employed by the company are in the same position even now!)

I have worked in a considerable amount of companies over the last 10-15 years and have to admit this one was incredibly unprofessional in this and other regards. When it transpired they 'lost' my p45 I paid a visit to the tax office to investigate how I get a new one - the lady in the office was very nice but while there I basically found out that they had no record of me working for the above job - the last employer they had on record for me was actually from my previous job.

Frustrated and uncomfortable with this and a whole host of other issues I quit and feel a whole lot better for it. However, I would like to sort this out once and for all and am totally at a loss as to what my options are. Ive never been on the dole nor do I ever want to. But I dont want to get in trouble and am a little unsure what to do - should I keep quiet, apply for back taxes - go and explain my situation....

Im so confused, please help.

Wreck

Did you get payslips when you were paid? Was there any PAYE/PRSI deducted from your gross wages?

Bo Malicious

Wreck> thanks for your interest. No to both questions. I was paid by cheque - monthly and no taxes were deducted from what I can tell. (This was often paid up to two weeks late!) I never received a wage slip.

Ideo

Sounds like he was paying you under the table

Anyway don't worry OP, you did NOTHING wrong so don't worry on that front.

I'd suggest you phone up the department of revenue tomorrow and explain the situation to them tomorrow. It would help if you had the employers tax number, but trading name and address will do. Sounds like you've exhausted all avenues with the employer and given them plenty of chances so time to go directly to the dept. of revenue now!

Not declaring you as an employee has serious implications for you PRSI entitlements, the number of 'stamps' (employers contribution) that your employer has not paid and your own PRSI payments affects the dole amount you can receive.

Also you might phone the bank tomorrow and get a statement from when you received your first cheque. You'l prob have to work out how much income you received from the employer during you period of employment. Revenue may request this from you if the employer has no record of it. He may do, but the employer is basically evading tax so i cant see him being too forthcoming with the info! You might want to figure this out for yourself anyway!

And finally you may have a PAYE liability to the dept of revenue so will you have sufficient money to pay them if/when the request it?

Bo Malicious

Ideo> thanks for your response and your time. Morally and ethically I think its wrong and I have in more ways then one been given the run around. In saying that I don't really have any savings to speak of at the moment to incur a PAYE liability and don't want to land myself in jail(perhaps thats unlikely)for a minimum wage job. What kind of punishment/fine would you think they would suggest? I wonder is going anonymous better. Perhaps I should wait a while then go to them with this information having built up some extra cash?

Ideo

Bo Malicious wrote: »

Ideo> thanks for your response and your time. Morally and ethically I think its wrong and I have in more ways then one been given the run around. In saying that I don't really have any savings to speak of at the moment to incur a PAYE liability and don't want to land myself in jail(perhaps thats unlikely)for a minimum wage job. What kind of punishment/fine would you think they would suggest? I wonder is going anonymous better. Perhaps I should wait a while then go to them with this information having built up some extra cash?

GOD NO! You wont be punished one bit. You won't, simply won't so don't be worried. You're not in the wrong! You wont be fined!

If it's minimum wage you're earning you probably wont be earning enough to be subject to PAYE anyway. You <i>could</i> owe a little PRSI but I'd be surprised if you did. I just said you might have a liability in case you were on high income but minimum wage, you souldn't owe much if anything!

em, you couldn't go anonymous. you'll have to tell the dept of revenue that you havent been declared as working by your employer.....

Dont be worrying anyway and ring the dept of revenue tomorrow. post back with how you get on. oh and the dept of rev will be VERY VERY interested in hearing from you

Wreck

Bo Malicious wrote: »

Ideo> thanks for your response and your time. Morally and ethically I think its wrong and I have in more ways then one been given the run around. In saying that I don't really have any savings to speak of at the moment to incur a PAYE liability and don't want to land myself in jail(perhaps thats unlikely)for a minimum wage job. What kind of punishment/fine would you think they would suggest? I wonder is going anonymous better. Perhaps I should wait a while then go to them with this information having built up some extra cash?

Just to echo Ideo, you have done nothing wrong and won't be punished. You may however owe some money to Revenue, how much will depend on how much you were earning and your personal circumstances. If you want to pot or pm me the figures and time period you were working I can do a rough calculation and let you know if and how much you owe.

Bren1609

If you were on paye then it's the employers responsibility to make paye/prsi payments on your behalf, in this case any payments that you received would be deemed as your net pay. Your wages would be grossed back up and the liability would be paid by your employer.

Bo Malicious

thanks everyone, appreciate the feedback.

Wreck> sending you a pm now - cheers.

rainbow7

I had a similar case with a friend of mine. Just ask this employer if he would like you to inform the Revenue commissioners about what they did with you and you will have the P45 in the next few days. Thats what happend with my friend. Best of luck!