PAYE Modernisation for employees

What effect does this have on emergency tax?

Your employer is obliged to operate emergency tax when they do not receive a Revenue Payroll Notification (RPN).

Your employer will not receive an RPN:

You will automatically be registered for PAYE when you register a job or pension using the 'Jobs and Pensions' service in myAccount.

Emergency tax rates from 1 January 2019

When you have not given your employer your PPSN

Your income will be taxed at the higher tax rate (40%).

When your employer does not have an RPN

You may give your employer your PPSN, but if you are not registered for PAYE your employer will not receive an RPN.

In this situation you will receive a single person’s rate band for the first four weeks. This means that in the first four weeks your weekly income:

  • up to €679 will be taxed at the standard rate of tax (20%)
  • over €679 will be taxed at the higher rate (40%).

After four weeks your total income will be taxed at 40%.

Emergency USC

The emergency rate of  Universal Social Charge (USC) is a flat percentage rate (8% in 2018) applied to all income.

Next: Preparation for PAYE modernisation