When an employee leaves, you must give them a P45 and send a copy to Revenue as soon as possible. Details relating to submitting a P45 can be found on the Revenue website.
Completing the general details section of the P45
There are four parts to a P45:
- Part 1 – You must complete and submit immediately to the Revenue
- Part 2 & 3 & 4– give to the employee to pass on to a new employer or to claim social welfare benefits
If an employee has died, send all 4 parts to the Revenue with the relevant box ticked.
Complete the information required in each section – this will be available from either the payroll system or the tax deduction cards.
You should complete a P45 when your employee:
- leaves your employment
- is granted a career break
- dies while in your employment.
A P45 shows the employee’s pay and deductions for the current year up to the date they leave your employment. The deductions shown relate to PAYE, PRSI and Universal Social Charge (USC) that were deducted and the tax credits and cut off points used up to date of leaving.
Only one P45 should be issued to your employee when they leave. Do not give copies of their P45. If they lose their P45, you may give them a letter showing all the information contained in the P45. If the employee has died while in your employment you should send all four parts to Revenue.
If you give your employee an additional payment that was not included on the P45 you must complete a P45 supplement form only showing the additional payments.
Calculating tax when your employee leaves
- You should calculate your employee’s tax and USC at the date of leaving or death in the normal way
- You must do this even if the final payment relates to a shorter than normal pay period i.e. a monthly-paid employee should be given their full month’s tax credits, and tax and USC cut-off points even if the payment is for only part of a month. This also applies if the employee is on emergency tax at date of leaving
- You should refund any overpayment of tax in the usual way
If you need any further information please email email@example.com or phone (01) 9104020.