Starting or leaving employment (P45)
Completing the Pay As You Earn (PAYE) section of the P45
Part (a): Total pay and tax deducted from 1 January to date of cessation
Total pay
Enter all pay received by your employee from 1 January to the date they left your employment. These details are for the current year only.
Total tax deducted
Enter the total amount of tax deducted from 1 January to date they left your employment. These details are for the current year only.
Part (b): If employment started since 1 January
Enter details of the pay and tax deducted for this period of employment only.
Pay (this employment)
You should only complete this part if your employee’s latest period of employment started since 1 January. Enter all pay received by your employee from their start date to the date they left your employment.
Tax deducted or tax refunded
Enter the amount of tax deducted or tax refunded to your employee in the latest period of employment. The tax figure you enter should not include brackets or a minus sign.
Mark the box with an ‘X’ if the tax figure at section (b) was refunded to your employee.
- Example
An employee has worked for two periods of employment with you in 2016:
Period 1: 1 January to 25 March
Period 2: 10 June to 15 September.
On 15 September, your employee leaves after their second period of employment. You should complete the P45 as follows:
Date of commencement: 10 June
Date of cessation: 15 September
Your employee’s pay for the period 10 June to 15 September should be entered at ‘(b) Pay (this employment)’
Your employee’s tax for the period 10 June to 15 September should be entered at ‘(b) Tax deducted or tax refunded’
Enter the total pay and tax from all employments for the period 1 January to 15 September, including other employers. This should be entered at ‘(a) Total pay and tax deducted from 1 January last to date of cessation’.
The ‘Total pay’ figure should include the sum of:
Pay for Period 1 (1 January to 25 March)
Pay details from other employment: 26 March to 9 June (if any)
Pay for Period 2 (10 June to 15 September).
Part (c): Lump sum payment
You may have given your employee a lump sum payment when they left your employment. If so, enter the taxable amount here. This figure should also be included in the pay figure(s) at sections (a) and, or (b) above.
Part (d): Taxable Illness Benefit
Enter the total amount of any Illness Benefit included in the pay figure(s) at sections (a) and, or (b).
Next: Completing the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) sections of the P45