Paye Question.

solway

Hi all,
Im wondering will i have to pay paye for two former employees of mine if i re-employ them in 2 weeks time. I employed them in may 2011 for 10 weeks and let them go again when job finished.(roughly middle of july 2011). I didnt pay any paye because they hadnt worked at all in 2011 or most of 2010 so they had full tax credits. What way will this work out now that i will be employing them again.

Also the 2 employees qualified for 'Employer Job(PRSI) Incentive Scheme, in May. This was not supposed to be broken for 12 months but as pointed out already it broke after roughly 10 weeks.I had enough work for 12 months but things didnt work out the way i had planned so had no choice but to let them go. My question here is would the 2 qualify again for this scheme or is it gone now seems i broke the 12 month period of employment. This scheme is where the employer doesnt have to pay employer prsi of 10.75% for employees out of work for 6 months or more.

tenchi-fan

First step is to receive the employee's P45s or get them to complete a 12A for a statement of tax credits.

Have you received these the first time? If not, you need to do it now as well as complete P30s for the wages you already paid them.

I don't know anything about the scheme so can't answer the question. Read the FAQ to see what it says about returning employees and previous non-compliance with the scheme.

I'm guessing, if these people have not worked at all (apart from you earlier in this year) you could employ them now still as part of the scheme. You should get this in writing.

Mrs OBumble

I'm transferring this to the taxation forum, 'cos I think that tax advice is what you really need.