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PAYE underpayment - my employers responsibility?

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  • 22-02-2012 10:07am
    #1
    nocheerleader
    Registered Users Posts: 28 ✭


    Hi all

    I have a situation which I would appreciate some feedback on.

    I started a new job in June 2011. Upon starting I presented my employer with my P45 and a current Tax Credit Cert, as I wanted to ensure I was receiving all of my credits.

    First month I got paid I checked my "payslip" to ensure all was correct and matching the credits and cut off point as per my cert. All was correct at the time. I say "payslip" as my company doesn't use payroll software, they give us a manual calculation on an excel spread sheet.

    Today I have been advised that in 2011 they calculated my PAYE wrong and I owe 400euro back to revenue.

    My employer sent me an email to confirm this and left a forwarded email from our auditor under the email. (It was the auditor who initially spotted the underpayment). In the auditors email he states that due to my employers mistake and miscalculation, if I do not repay the 400euro the company will be fined.

    More importantly for me, he states that the responsibility is on my employer to be checking on a regular basis with revenue, he said "Going forward every month when doing the payroll you need to check the tax credits on ROS to ensure there are no changes to employees tax credits or cut off points, they can change for various reasons during the year".

    So my question is, do I have any ground to dispute this with my employer? I have a PAYE Anytime account from which I provided an up to date tax cert and I provided a P45 when I started with the company. I feel my employer should take some responsibility.
    Tagged:


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    #2
    nocheerleader
    Registered Users Posts: 28 ✭nocheerleader


    I just found this on Revenue.ie under the section "Employers Guide to PAYE" and wonder if it relevant:

    "6. Errors discovered at the end of the year
    .....If there was an under deduction of tax the employer may not recover it from the pay of a later tax year. The employer remains liable to pay to the Collector General the tax properly due unless it can be shown that reasonable care was exercised and that the under deduction of tax was due to a bona fide error."


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