New Employees PAYE/PRSI

for new employees can anyone explain what week1/month1 means? also if a new employee has a full medical card are they exempt from the income levi even tho their new job may mean they would no longer qualify for the medical card? thanks for any help

Week1/Month1 means that the employee is granted only one week/month's tax credits and cut-off point per 1 week/month's pay. In other words no accumulation of pay or credits from the start of the year to now. This is often done where an employee commences employment after a break, either from unemployment or emigration or being self-employed and Revenue do not know at this point what the earnings from start of year to now are. If they granted the credits cumulatively there may result in an underpayment of tax. Usually once all the facts are known the employee is granted the credits cumulatively. If year end comes and still on W1/M1 then employee can request a review and see if any under/overpayment has occurred.

Persons with a full medical card are exempt from the Income Levy. ( see Income Levy FAQ's at revenue.ie )

If an employee has a new job it the pay from which would result in loss of medical card it is up to them to notify the HSE if they consider they are no longer entitled. Of course at card renewal time the card would be withdrawn if over the limit. The employer has no part in this only to operate the procedure as applicable to employees with or without a card as the case may be.

Week1/Month1 means that their tax credits and rate bands are not operated on a cumulative basis for the year - you just apply the weekly/monthly amounts to their weekly/monthly pay as a separate calculation each week/month.

If they have a valid medical card levies do not apply. It is not up to the employer to check on their situation. However, take a copy of medical card for your records, and ask the employee to advise if you this is withdrawn (do that in writing). You are then taking care of your responsibilities.

Domo - Snap

thats great, thanks very much

If the new employee has been long term unemployed prior to the new job he may be allowed to continue holding his medical card regardless of income for up to 3 years. Therefore it is important that a copy of medical card is kept on file.
While employers are not obliged to inform employees re levies it is recommended to put a notice on staff notice board to this effect