Income levy collection Query

My understanding of PRSI collection is that each employer treats their employee's in isolation, i.e does not factor in earnings from other employers in determining whether an employees salary is over a particular PRSI threshold, e.g. employee PRSI threshold of 352

In terms of PAYE employers do need to factor in income received from other employers for all their employee's

I was wondering what the story is with the income levy. Does the employer do this in isolation. In other words, the levy threshold is 289 per week. Hence if employer(A) pays an employee(B) 260 per week, however that employee(B) has a second employer were he receives 100 per week. The combined income puts employee B over the threshold. So how should employer A deal with this situation

Thanks

Hello,
I have another question, please
The employer should put PYAE and PRSI in P30 mounthly form return, where Levy 1 % must be included in paye or prsi ?
Thanks for any help

The employer cannot bring other employments into their calculations. Each employer deals with the IL in isolation. That will, in some cases, give rise to underpayments.

The IL goes under PAYE on the monthly/quarterly returns.

See Revenue's guide on this which explains it all. ( including point 4.6 on multiple employments )

www.revenue.ie/en/practitioner/law/income-levy.pdf

I heard the Levy must be 2% starting from 1st May, I received P30 for May today there is nothing saying about that, what I have to put in there ? Thanks

The Income Levy is added to the PAYE amount as mentioned in my previous post on this thread and as per the Revenue guide as linked in that previous post.

Thanks Graham

yeah, I was a bit suprised that Revenue didn't send me (as an employer) updated info on the levy.. I forgot and only deducted 1% from my staff for the first week in May... so I have to pay the extra 1% myself to be fair.. I think Revenue should have sent me a letter, what if I didn't know even now and only took 1% for a long time?, would I have to foot the bill, or the staff? Usually it'd be me as the employer.. that could be quite expensive.

JoeBallantin said:

I think Revenue should have sent me a letter, what if I didn't know even now and only took 1% for a long time?, would I have to foot the bill, or the staff? .

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In my opinion , the easiest way to calculate prsi is using up-to-date payroll software .

If there is a significant underpayment to Revenue , you can be assured that you will be informed , and I presume , it would be up to you to foot the bill , or deduct the underpaid amount from your employees , ( with their consent of course )

Hi Graham_07

When you say

The employer cannot bring other employments into their calculations

Click to expand...

are you referring to the IL specifically or is this the case also for PAYE and PRSI also

Thanks