Filling in P30

[txirimiri]

Apologies in advance if this is a stupid question - I am newly employing a childminder in my home and am not particularly familiar with procedures of being an employer.

Registration etc is all taken care of and I have just filled in the first P30 (for September) which I received from Revenue and sent it off with a cheque for the PAYE/income levy and PRSI due. Hoping next time round I will have my ROS pin so I can do it online.

My question is this - there is no indication on the form of how much her overall salary is - just space to fill in PAYE (incl income levy) and PRSI. She earns under the 352 threshold and is not in an exempy category for income levy, so I have filled in 8.5% of her salary in the PRSI space (employer PRSI which I am liable to pay) and 2% of her salary in the PAYE space (income levy, which she is liable to pay in theory but which I am covering for her).

Is that correct though? How does Revenue know her total salary and whether I have calculated everything correctly? How will they know the PRSI amount is employer PRSI and not employee PRSI and that the amount remitted for PAYE is for income levy and not PAYE? Have tried to get on to the Employer Helpline but its constantly engaged and I only have short windows during my own working day when I can make calls

 

[Towger]

Sounds correct, at the end of the year (early next year) you will need to send in a P35L for her. This details her total salary, PAYE ,PRSI, Insurable weeks etc.

 

[Mrs Vimes]

My question is this - there is no indication on the form of how much her overall salary is - just space to fill in PAYE (incl income levy) and PRSI. She earns under the 352 threshold and is not in an exempy category for income levy, so I have filled in 8.5% of her salary in the PRSI space (employer PRSI which I am liable to pay) and 2% of her salary in the PAYE space (income levy, which she is liable to pay in theory but which I am covering for her).

Employers cannot "cover" taxes which are payable by the employee.

You will have to gross up the amount and calculate paye and income levy on the gross amount.

If for example you are paying her £300 per week and paying the £6 income levy yourself as well you have to calculate the levy and prsi on £306. The difference will be less than £1 per week if this is the rate of pay but will mean her P60 and your P35 will be showing tax underpaid by £30 or so over a full year.

If however you are paying her £350 per year then the 2% will bring her into the next prsi category (£357) and the difference will be significant.

Also, even if the difference is negligible this year the budget may change that.

Sybil