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Employee Tax Liabilities

February 10, 2021 Tax Advice 0 Comment

From mid-January 2021 onwards, Revenue will make a Preliminary End of Year Statement for 2020 available for each employee. This will assist in determining the amount of IT and USC due.

All employees, including those who benefited from the TWSS, can view their Preliminary End of Year Statement in MyAccount. Each employee will be able to see if there is an underpayment of IT or USC arising due to the TWSS.

Employees will have a number of choices if they do have a shortfall.

1. pay it off in full through their own funds

2. attempt to reduce it by claiming tax credits such as those on unreimbursed medical expenses or eworking allowance(see Article below);

3. agree to an adjustment of their tax credits for four years from January 2022 to gradually pay off the bill.

There is the option for the employer to pay 

Where an employer has agreed to cover the tax shortfall, then they can either pay their employee these funds, which in turn are used to settle the bill via RevPay, or the employer can amend an employee’s last payroll submission of 2020 to account for the tax liability.

Employees who don’t log into their Myaccount, will receive a letter from  Revenue towards the end of the first quarter.

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Joe Cunnane Practice Owner TRA Professional Services       Qualifications:  FCA Chartered Accountant & AITI Chartered Tax Advisor Joe has over 20 years experience working in both private practice and industry ... Read More »