P60 shows wrong USC Tax Paid

kokiyou

Hi there,

My P60 shows wrong USC tax paid as my company did not correctly calculate the RSUs sold off at the highest USC tax bracket. Therefore my 2017 P60 is incorrect. Basically my P60 said I paid USC @ 2.5% on my RSUs but in fact I paid it via selling stocks at the highest rate 8%. Therefore my payslips are underreporting the USC tax that I paid.

I would like to file a form 11 for 2017, can I just ignore the P60 values / payslip values and put in the correct values on the form 11 or do I need to notify revenue that my payslips for 2 months of the year have wrong USC tax (as I received RSU in those two months)?

I reached out to my employer but I feel I am being ignored here. Can I just do it manually as I have the figures done right myself?

OR should I call revenue to confirm this process?

Thanks,

Calahonda52

Who executed the sale that gave rise to the USC?
How did YOU pay the the 8%?
Is the RSU not retreated as income on vesting and employer deducts a portion for tax, hence the USC, and the subsequent sale is a capital disposal which does not attract USC
Maybe wrong here.

kokiyou

Hi, there is a stock broker that handles issuing of stocks and selling of stocks to cover tax. In this case I have documents from the broker showing I was granted X stocks, and 52% of the value of X is sold to cover tax leaving me with 48% of stocks/cash. Cash being left over if they had to sell an extra stock to cover the tax.

Basicly payroll messed up and charged me 2.5% USC on all gross income but the RSUs were already taxed correctly by the broker. I am wondering can I just edit my form 11 to show the right values for everything or will I need to speak to revenue / have to have an audit, as I need to pay them more USC but some of it has already been paid (RSUs).

Hope that makes sense..

Watergirl4

I don't think that you can as your P60 will agree to the P35 of your employer.

I would contact the payroll dept and point out the issue to them.

Was all the rest of your income only subject to USC @ 2.5%...or is it the case that the 8% USC was too high so you are owed the proceeds from the additional shares sold over and above your total tax liability?

Sorry - edited as I re read - so the 2.5% on all of your income was incorrect and you will owe additional USC, but your employer has not paid this over to revenue (otherwise it would appear on your payslip). The proceeds from sale of 52% of your vested RSU's are more that the PAYE/PRSI/USC that your employer has put through your pay and P60. They would need to correct this and file an amended P35 for you to get credit for them....or give you back the cash equivalent of the excess

kokiyou

Hi Watergirl4,

I have already pointed the issue out to the payroll dept.

Things are going very slow and not sure if it will get resolved and I need to file my form 11 by end of this October.

>Was all the rest of your income only subject to USC @ 2.5%...or is it the case that the 8% USC was too high so you are owed the proceeds from the additional shares sold over and above your total tax liability?

Yes all was subject to 2.5% USC flat rate (ignoring all the cut off rates etc). My form 11 says with my P60 figures inputted that I owe over 1000 to them due to unpaid USC. However the RSU USC tax was paid so I should owe the revenue a lot less about 700 euro less.

wiggle16

You can file your Form 11 as normal, using the correct figures.

I would then write to Revenue (via ROS) outlining what you've said here, that the P60 figures are incorrect, you've input the correct ones and that you are having payroll file a new P35L with Revenue which should reflect the figures you've entered on the Form 11.

If you don't let Revenue know you're amending the figures, they may amend the Form 11 back to what is on the current P35L (and your P60). If you let them know, they will hold off on amending it.

This way you do not have to worry about the company getting its arse in gear before the deadline.

I hope that helps.

kokiyou

Thanks Wiggle