The end of the P45 and P60

PAYE modernisation helps employees and employers

As the song says Well it’s bye bye to the P45 (and P60). (Apologies to fans of the original American Pie.)

Since 1 January 2019 the use of P45s and P60s have been discontinued. For employees who have left employment and have had to chase their former employer for a P45, this will come as welcome news. This is part of the Revenue Commissioners PAYE modernisation process. They are overhauling the PAYE system, which was first introduced in 1960. Employers must now report their employees’ pay and deductions to revenue as they occur. Employers are obliged to furnish to the Revenue Commissioners, information on any employees leaving their employment in real time.

As an employee, what should I do when leaving my current employment ?

If you leave your job after 1 January 2019 you will not receive a P45. Your employer will enter your leaving date and final pay and deductions into Revenue’s online system. You can then look up those details via the Revenue’s myAccount service. If you haven’t already done so, you should register with Revenue for the myAccount service. The Revenue Commissioners advise that from mid-2019 all registered employees will be able to log in to their myAccount to view this information.

The P45 is no longer required by The Department of Employment Affairs and Social Protection when making a claim.

Does this apply to anyone starting employment ?

Yes. The Social Welfare (Consolidation) Act 1993 places a legal obligation on the employer to keep accurate and current records. This new change makes the information available to you online, in a protected environment.

What if the employer is not keeping up to date with its PRSI returns ?

The employer is obliged to keep all returns up to date for all employees. Any breach of this obligation may result in prosecution, the payment of fines or both.

Where do I apply ?

Contact your local tax office

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