# Director's Salary



## accsvalue (7 Jun 2012)

Can a proprietary director make an accrual for bonus salary in y/e December 2011 accounts and get paid in the following financial year?

Thanks


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## mandelbrot (7 Jun 2012)

Yes, but the PAYE/PRSI is due as part of 2011 P35 liability.

http://www.askaboutmoney.com/showthread.php?t=109081

A potential pitfall is that if the company goes bust without having paid the remuneration, you won't be able to get the PAYE/PRSI back.


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## mandelbrot (15 Jun 2012)

Because the individual will still be taxable on it here, assuming they are tax resident here.


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## capnhand (15 Jun 2012)

mandelbrot said:


> Yes, but the PAYE/PRSI is due as part of 2011 P35 liability.
> 
> http://www.askaboutmoney.com/showthread.php?t=109081
> 
> A potential pitfall is that if the company goes bust without having paid the remuneration, you won't be able to get the PAYE/PRSI back.



Per the end of that link it mentions that if a bonus is paid out within 6 months of the end of the year the PAYE/PRSI/USC is due when the salary is actually paid. If it is not paid within 6 months of the year end then it indeed must be accounted for on the P35/p30s of the previous year and interest accrued.

* Section 996 TCA 1997*

, does not apply to: 

(a) emoluments to which *Section 984 TCA 1997 *applies (i.e. emoluments which are to be taken into account in computing the profits of a trade or profession) 
and 
(b) unpaid remuneration which is paid before: ​


(i) the date of expiry of six months after the date on which it is deemed to have been paid ​


or ​


(ii) in  relation to a period of account of more than 12 months, the date of  expiry of 18 months from the first day of that period of account if that  date of expiry is later than the deemed date of payment. ​


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