P35 Deadline coming on the 15th of February 2011

A P35 is a return which must be submitted by all employers who employ staff on the PAYE system.  It covers the period from 1 January to 31 December 2010

The P35 will show the following details:

1. The names of all the employees that were working for the employer throughout the year, (this does not just mean employees who are there at the end of the year, can include employees who started and ceased during the year),
2. The employees’ PPS numbers.
3. The Gross pay paid to them during the year
4. The PAYE (income tax) deducted from them, along with the PRSI, income levy, as well as the total PRSI ( i.e. employee and employers PRSI)
5. It should also state other items that may or may not be relevant to some staff such as pension deducted from each staff member, any other forms of income that the employee earned such as BIK.

If the P35 is completed via ROS (Revenue Online Service), the computer will add up all the tax,prsi and income levy that the employer should have remitted to the revenue throughout 2010, and ROS will then let you know if there is a balance or a refund due from the revenue.

Most employers nowadays use a computerised payroll package, old fashioned tax deduction cards should be gone out with the Ark, so therefore as long as the information processed on the package during 2010 is correct, the P35 should be straightforward, and with most packages, you can just upload your information to ROS.ie

Very important note: Make sure to include the new income levy that came out in 2009, as I have seen some companies faling to include this on the P35 in the final liability, this is under-declaring your total liability, and could result in interest and penalties.

Also, you must provide a P60 and an income levy certificate to each staff member who was in your employment on 31 December 2010, anyone who left you before this date does not get one from you.
A P60 just states the employee’s name, PPS number, Gross pay, PAYE deducted, as well as PRSI paid on your behalf by your employer during 2010.

It is a legal requirement that all employees must receive this no later than February 15th 2011, non-compliance or where figures do not match the P60, can result in large fines from the employment authority.

If you need help submitting your P35 or with any accountancy aspects of your business, be it cash flow planning, financial advice or taxation, then feel free to call us on 016790990 and ask for Seamus or Karl

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