P45-but pay still outstanding

JJ1982

Registered User
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Hi there,

A company I do payroll for are currently in arrears in wages due to a lack of cashflow, but this will hopefully be sorted in the month. The staff are still owed wages for Dec 2008 which they are normally paid on there last day of the month.

So anyway an employee is leaving this week and needs her P45 asap. Is it okay for me to issue the P45 on what her wages should be even though they havent been paid yet, and there is about a 10% possibility they wont? Is she agreeing that she recieved the monies on the P45 by accepting it?

thanks
 
If she has not been paid all her wages , then you cannot issue P45 .
Give her P60 for year end and give her P45 when all monies is put through for her.

If she needs to sign on or whatever , its ok because Social Welfare will use P60 until she officially leaves work and then she can hand in her P45.

If she needs P45 for new job , then she can still be set up as new employee and P45 details can bea added on when she actually gets her P45.

This is the way I see it
 
A standard P45 is issued up to date of cessation including all pay and tax actually received/deducted from Jan 1st to date of cessation. Any further pay if or when its received after the date of cessation is dealt with on a week 1 basis and a Form P45 supplement shuold be completed in respect of this pay.

From Revenue website:

4 Payments made after date of cessation and before following 1 January

A payment made after the date of cessation etc. that is not included in form P45 should be dealt with for tax purposes on a week 1/month 1 basis (paragraph 7.6) when made. The PAYE/PRSI entries should be made on the PAYE/PRSI record for the income tax week or month in which payment is made. Form P45 Supplement should be completed and sent to the employer's Revenue office immediately.

Link to revenue.ie [broken link removed]
 
If it's treated as a week1/month1 payment then the 1% levy will apply, leaving the employee out of pocket until the end of the year when it can be reclaimed.
 
So guys in my case if I am owed for Nov, Dec and soon Jan am I going to be hit with this 1% levy also?
I have been given my pay slips for Nov and Dec :(
 
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