What is Tax?

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Teaching the basics of revenue and the tax system here in Ireland.

Creada por

Karl Doherty

Irlanda

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What is Tax?Versión en línea Teaching the basics of revenue and the tax system here in Ireland. por Karl Doherty 1 What does PAYE stand for? Written answer 2 Who pays PAYE? a All employees b Pensioners c Students who do not have a part-time job 3 When does an employee pay PRSI? a When their weekly wages are less than €352 b When their weekly wages are more than €253 c When their weekly wages are more than €352 4 When does an employee receive a P45? a When an employee is let go/leaves their place of employment b At the end of every year while working in an establishment c When an employee enters employment 5 When does an employee receive a P60? a At the end of every 2 years b At the end of every tax year c When you are no longer employed Feedback 1 The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Your employer deducts tax and national insurance contributions from your wages or occupational pension before paying you your wages or pension. Wages includes sick pay, maternity or paternity pay and adoption pay. 2 Tax is charged as a percentage of your income. The percentage that you pay depends on the amount of your income. The first part of your income, up to a certain amount, is taxed at 20%. This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band. The remainder of your income is taxed at the higher rate of tax, 40% in 2018. 4 A P45 is a statement of your employee’s pay and deductions for the year up to the date they leave your employment. 5 Your employer must give you a P60 (pdf) within 6 weeks of the end of each tax year. It is a statement of your pay and of the tax, USC and PRSI deducted by your employer during the year. It also records your Local Property Tax (LPT) deductions (if you choose to have the LPT deducted from your pay). The P60 is an important document. If you are claiming a benefit, you would send a copy of it to the Department of Employment Affairs and Social Protection as evidence of your paid PRSI contributions. If you are not working on 31 December you do not receive a P60 as you would have

What is Tax?Versión en línea

Teaching the basics of revenue and the tax system here in Ireland.

What does PAYE stand for?

Written answer

Who pays PAYE?

All employees

Pensioners

Students who do not have a part-time job

When does an employee pay PRSI?

When their weekly wages are less than €352

When their weekly wages are more than €253

When their weekly wages are more than €352

When does an employee receive a P45?

When an employee is let go/leaves their place of employment

At the end of every year while working in an establishment

When an employee enters employment

When does an employee receive a P60?

At the end of every 2 years

At the end of every tax year

When you are no longer employed

Feedback

The Pay As You Earn (PAYE) system is a method of paying income tax and national insurance contributions. Your employer deducts tax and national insurance contributions from your wages or occupational pension before paying you your wages or pension. Wages includes sick pay, maternity or paternity pay and adoption pay.

Tax is charged as a percentage of your income. The percentage that you pay depends on the amount of your income. The first part of your income, up to a certain amount, is taxed at 20%. This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band. The remainder of your income is taxed at the higher rate of tax, 40% in 2018.

A P45 is a statement of your employee’s pay and deductions for the year up to the date they leave your employment.

Your employer must give you a P60 (pdf) within 6 weeks of the end of each tax year. It is a statement of your pay and of the tax, USC and PRSI deducted by your employer during the year. It also records your Local Property Tax (LPT) deductions (if you choose to have the LPT deducted from your pay). The P60 is an important document. If you are claiming a benefit, you would send a copy of it to the Department of Employment Affairs and Social Protection as evidence of your paid PRSI contributions. If you are not working on 31 December you do not receive a P60 as you would have

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What is Tax?Versión en línea

por Karl Doherty

What does PAYE stand for?

Written answer

Who pays PAYE?

When does an employee pay PRSI?

When does an employee receive a P45?

When does an employee receive a P60?

Feedback

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