# 2 PAYE jobs - tax/PRSI implications?



## Omega (6 Feb 2007)

A work colleague may be taking voluntary redundancy soon but has several months worth of untaken annual leave built up which he intends to take en bloc, thus staying "employed" until this leave runs out. If he seeks other full-time or part-time employment during this period, what are the tax/PRSI implications in respect of both "employments"? - e.g. (1) can he get another job without having a P45 from the first employer? (2) does the second employer also have to deduct a PRSI contribution? Many Thanks.


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## Welfarite (7 Feb 2007)

I take it that the emplyer is aware that he will be officially leaving when the annual leave runs out? Then, he will be paid as in employment up to that date adn the P45 will show that date as last day of work. if he gets another job in the meantime, it's the same as somebody workjing two jobs at same time. PRSI is paid on both as a % of wages.


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## Satanta (7 Feb 2007)

Omega said:


> (2) does the second employer also have to deduct a PRSI contribution? Many Thanks.


The PRSI is a % of the total pay, so as stated above, the second employer would also deduct this.


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## Guest127 (12 Feb 2007)

I found myself in this position too last year. lot of annual leave to take but not returning to work as I was retiring. the advice I was given was that as I was still on annual leave and technically still with my employer that the unless the 2nd employer was actually paying more than the first ( unlikely ) then the 2nd employment was not my 'main' employment and therefore in the event of an accident etc there might be complications. don't know if this is the case or not as I just decided to treat the annual leave at face value. ie did nothing for the 3 odd months I was owed. ( also in my case which might have or might not have a bearing on the issue was the fact that my rate of prsi was D1 and Dept of Social Welfare don't allow somebody on a modified rate to pay full rate on a smaller income from a 2nd employment )


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## Omega (12 Feb 2007)

Thanks for the replies.
Cuchulainn, as a side issue, did the employer offer to pay for the untaken leave - or were you entitled to actually work it off, so to speak, while still being paid normally? In a case like this, does the employee have the option of either course - or does it depend on whether he/she is retiring or taking redundancy? I thought that I read somewhere about untaken leave having to be paid for when there was a "cessation" of employment.


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## Guest127 (12 Feb 2007)

Omega; on that score my former employer bristled with inconsistancy. I was not the only one owed a large number of days. in the case of at least one employee the employer paid off the leave in one lump sum. this meant that that particular employee wound up paying 42% payment of the annual lump sum in tax. and he 'missed' the 3% due in November. I actually offered to take the days owed in cash payment but was refused. as the annual leave carried me past the november sustaining progress payment I wasn't concerned by the refusal. probably did me a favour.and in the end I actually enjoyed the break. downside was that I grew lazy and was slow in seeking other employment but have now since remedied that laziness. cheers


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