P2C

Revenue will issue P2Cs to all employers during December 2015. P2C is information about tax credits, cut off points and thresholds for employees which will be applicable from 1 January 2016.

Employers should try to hold back running January payrolls until they receive the 2016 P2Cs.

What you should do If you won’t receive 2016 P2Cs in time to run January 2016 payroll?

Tax Deductions

Employers should continue to use the 2015 P2Cs for tax deductions.

Universal Social Charge (USC) Deductions

The rates and thresholds of the Universal Social Charge (USC) are changed with effect from 1 January 2016.
Employers should continue to use the 2015 USC Cut-Off Points and apply the 2016 USC Rates (1%, 3%, 5.5% and 8%).

USC Exemption
Where USC Exemption was advised in the 2015 P2C, employer should continue to apply USC Exemption from 1 January 2016, until the 2016 P2C is received.

Emergency Basis Deduction of USC
Where the emergency basis of USC deduction applied, employer should continue to apply the emergency basis of USC from 1 January 2016, until the 2016 P2C is received. The 2016 emergency USC rate is 8%.

P35 Filing – Year-End

Correct PPS Numbers

Ensure that you have the correct PPS Number for all your employees. Issues have arisen when, for example, an employee changes from a ‘W’ number and has a new PPS Number issued by the DSP and Revenue issue a new P2C under the new number. Where an employer continues to use an  incorrect PPSN on the P35L, this will cause delay in updating the individual employee’s pay and PRSI information to the DSP.

Local Property Tax (LPT)

Updated P2Cs containing instructions about LPT deductions are issued by Revenue during the year. Therefore is important that you use the latest P2C instruction relating to LPT deductions at the year-end (for December 2015 payroll process).

Changes to PRSI (from January 2016)

Employer PRSI

The lower 8.5% Class A rate of employer PRSI will apply to weekly earnings up to €376.

PRSI Credit

The maximum weekly PRSI Credit of €12.00 will apply to gross weekly earnings between €352.01 and €424.

ROS Login Changes

ROS login process will change to Javascript login, replacing the current Java Applet login from 5 December 2015.

Contact Revenue

The Employer Customer Service Unit to support employers
Telephone: 1890 254 565 (+ 353 1 702 3014 if calling outside of the Ireland)
E-Mail: employerhelp@revenue.ie