Is employer obliged to process and repay PAYE/USC refund

WeleaseWoger

Payroll question - a new employee on a very short term fixed contract has a new tax credit certificate sent through from Revenue, and is now on cumulative basis. This would generate a substantial PAYE refund on the next pay day (must have been on emergency tax in a previous employment or similar). Is the current (very short term!) employer obliged to process & pay this or can it be left to the employee to sort out a refund themselves direct from the Tax Office once the fixed contract has ended?

2ndcoming

Technically the employer should refund it. It will then be recorded as tax refunded on the P35/45 and be reduced from the emplyer's PREM liability at the end of the year.

relax carry on

Links may be of assistance to you.

http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-refunds.html

http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-recommencing.html#section10

WeleaseWoger

Thanks for replies and links. I know that ultimately it doesn't cost the employer anything as its deducted from a subsequent P30 but there could be a situation where a large tax refund is beyond what the employer had budgeted to pay out on a given week. I was just wondering if they were obliged to pay especially if the circumstances that gave rise to the refund may have happened in a previous employment. My payroll package has an option 'Allow PAYE/USC refunds Yes/No' - and I was wondering when you could say No.

thesimpsons

in the past I had this situation and the refund would have completely thrown out cash flow. I requested Revenue could I use a week 1 basis in this situation and was given an ok to do it. maybe you could ring Revenue on Monday.

WeleaseWoger

Tks thesimpsons for the reply. All got a bit hectic in November after that!