Sage & Emergency Tax

Green&Red

Hey, I've just set up as an employer, am looking to pay the first weeks wages from back in January but when I look to do that almost 50% is going on PAYE, am I right in thinking that's emergency tax? If so how long will that go on for? And is there any of avoiding it?

Thanks

Stratvs

Are you doing pay that was paid in January now?
Are you familiar with PAYE Modernisation?
Do you have SagePay set up to get Revenue Payroll Notifications for staff?
Emergency Tax and USC will take 40%+8% of Gross + any PRSI due if there is no RPN or if the RPN is nil credits and cut-off.

Green&Red

Are you doing pay that was paid in January now? - yes but its my own wages
Are you familiar with PAYE Modernisation? No - what is this?
Do you have SagePay set up to get Revenue Payroll Notifications for staff? No, just downloaded it and trying to get my head around it
Emergency Tax and USC will take 40%+8% of Gross + any PRSI due if there is no RPN or if the RPN is nil credits and cut-off - So I think I got the RPN from the revenue site - when prompted I logged in through the ros website with the company login - so I presume it must be down as nil credits - would there be a reason for that? How can I rectify that?

Thanks for your response - I am in over my head on this!

Stratvs

Own wages as an employee of your own company. Your problem is that since 01/01/2019 wages must be reported to Revenue ON OR BEFORE the date of the payment. ( look up PAYE Modernisation on Revenue.ie it's too much to get into here )

You must be set up as an employee of your company before your company can get an RPN for you. ( RPN is what used to be called P2C or tax credit cert ) You need a ROS digital certificate to do the company part of this. If you have a Revenue MyAccount set up you could commence yourself there. You need the cert loaded into the payroll and then the payroll checks with ROS for an RPN then you can do the pay based on that. You also need a ROS Debit Instruction or variable DD set up with Revenue pay the amounts due to them. If none of this makes sense you need to speak with someone to get you up and running. HAve you an accountant for the business a qucik call to them could get this up and running then you could take it from there yourself.

Stratvs

Green&Red wrote: »

So I think I got the RPN from the revenue site - when prompted I logged in through the ros website with the company login - so I presume it must be down as nil credits - would there be a reason for that? How can I rectify that?

Missed this bit so you have a ROS cert for the company ok. If the RPN is nil it can be because your tax credits may still be allocated elsewhere, last job maybe? Were you ceased with last employer?

Green&Red

Thanks a million!

Green&Red

Ya I would have received a P45 from the last employer, it would have been in 2018

Stratvs

Green&Red wrote: »

Ya I would have received a P45 from the last employer, it would have been in 2018

Ok so when you get SagePay to check with ROS for RPNs your PPSN should show no other employments in 2019 and all credits/cutoff should be allocated to your company.

Green&Red

Stratvs wrote: »

Ok so when you get SagePay to check with ROS for RPNs your PPSN should show no other employments in 2019 and all credits/cutoff should be allocated to your company.

So it retrieves the RPN but showing zero for tax credits?

Thanks again for your help. I've send an enquiry through ros.ie also. I'm self employed aside from this company, could that have anything to do with it?

Stratvs

Green&Red wrote: »

So it retrieves the RPN but showing zero for tax credits?

Thanks again for your help. I've send an enquiry through ros.ie also. I'm self employed aside from this company, could that have anything to do with it?

Look up my account or PAYE 2019 in your ROS account and see what employments are listed and you can allocate credit there. Also as ROS can take weeks to come back I’d ring the PAYE helpline. Go to Revenue.ie contact locator, put in your PPSN and it will give you the phone number, might be quicker to get the credits sorted. Then once that done the RPN should have them on it.

Depending on your self employed income you might want to keep the credits for that so you would end up with nil credits for PAYE employment.