P45

legaleagel

What happens when you are given a P45? I think that part 1 is returned to Revenue by your employer and you don't receive this part and that parts 2 & 3 go to your new employer and part 4 is for the labour exchange is this correct ?

barneystinson

legaleagel wrote: »

What happens when you are given a P45? I think that part 1 is returned to Revenue by your employer and you don't receive this part and that parts 2 & 3 go to your new employer and part 4 is for the labour exchange is this correct ?

http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-cessation.html
P45 Part 1

Part 1 of the form P45 is a notification to Revenue that the employee has ceased employment and should be sent to Revenue immediately the employment ceases.
It is of the utmost importance that an employer issues the P45 immediately an employee ceases in the employment. The P45 part 1 sent to Revenue contains the details of the employee's pay, tax and PRSI contributions to date of cessation, and is held by Revenue on computer record along with pay, tax and PRSI details from any other previous employments the employee had in the tax year.
When the new employee commences in their new employment, all the pay and tax details from 1 January up to the date of the new employment are included on the cumulative tax credit certificate issued by Revenue to the new employer.
Where a previous employer delays in sending part 1 of the form P45 to Revenue, the employee's previous pay and tax record is incomplete and therefore it is not possible to issue a cumulative tax credit certificate. In these cases the tax credit certificate must be issued on the non-cumulative (week 1/month 1) basis until the P45 part 1 is received.
P45 Parts 2, 3 and 4

Parts 2, 3 and 4 (attached together) should be given to the employee on the date the employment ceases.
The employee requires parts 2, 3 and 4 to:

• give to their new employer to avoid paying emergency tax
• claim a refund of tax during unemployment
• claim Social Welfare benefits

Parts 2 and 3 are in most cases given by an employee to a new employer who retains part 2 and sends part 3 to Revenue as a request for a tax credit certificate (New employees and employees recommencing part 5 ).
Part 4 is for use in claiming Jobseeker's Benefit (formerly known as Unemployment Benefit) from the Department of Social Protection.
An employer should not in any circumstances supply duplicates of parts 2, 3 or 4 to an employee who has left the employment. Where the original has been lost or mislaid a letter can be given to the employee stating all relevant pay, tax and PRSI information.

legaleagel

Thank you very much for your help