New employee

The Buster

A friend has been self employed for a few years and this week has taken on his first employee. Employee is due to be paid his first salary. I have worked in payroll before so he has me to help with calculation.
Employee has not given P45 so we have to go down the emergency tax route. From my memory emergency tax works in 4 week stages I.e. first 4 get normal cutoff and credits to eventually getting no cutoff or credits
My friend was onto the tax office the other day to register as an employer and they told him to apply emergency tax and use high tax rate with no credits or cutoff from week 1.
Has the system changed? I did a quick search and can't find anything to say it should be applied as suggested by tax office
Thanks for replies

nompere

The Buster wrote: »

A friend has been self employed for a few years and this week has taken on his first employee. Employee is due to be paid his first salary. I have worked in payroll before so he has me to help with calculation.
Employee has not given P45 so we have to go down the emergency tax route. From my memory emergency tax works in 4 week stages I.e. first 4 get normal cutoff and credits to eventually getting no cutoff or credits
My friend was onto the tax office the other day to register as an employer and they told him to apply emergency tax and use high tax rate with no credits or cutoff from week 1.
Has the system changed? I did a quick search and can't find anything to say it should be applied as suggested by tax office
Thanks for replies

The answers are here:http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-calculation.html#section8

There is a distinction drawn between employees without a PPS number, where the higher rates apply, and employees with a PPS number, where the emergency basis works along the lines you remember.

The Buster

Perfect - that's what I thought it was. Thanks a million