2020 End of year communication for employers and employees

Important end of year information for employees

This page is to help employees to:

  • manage their Income Tax and USC
  • claim credits and entitlements
  • understand and review their 2020 tax liability
  • and
  • complete and review their Income Tax Return.

Summary of what will happen in 2021?

  • Revenue will make an Employment Detail Summary(EDS) and a Preliminary End of Year Statement(PEOYS) available to you
  • If you wish to claim: you will then need to complete your 2020 Income Tax return.
  • Revenue will then generate your Statement of Liability confirming your tax position.
  • Any overpayment of Income Tax or USC will be refunded to the bank account on record for you. Please ensure your bank account details are correct in myAccount.
  • Any underpayment may be
    • paid in full or partially through RevPay in myAccount
    • or
    • the remaining liability will be collected, interest free, by reducing your future tax credits from 2022 over a maximum period of four years.

Managing your tax

The quickest and easiest way to manage your tax and claim your entitlements is through myAccount. You can access or register for this single access point to all Revenue’s secure online services for PAYE taxpayers at myAccount.

Useful information videos

The videos listed below may assist you in dealing with your tax affairs including claiming credits and reliefs:

Employment Detail Summary 2020

 

Employment Detail Summary with Pandemic Payment

 

How to get your 2020 Statement of Liability

 

How to get your 2020 Statement of Liability where you received Pandemic Payments

 

myAccount

Four year time limit

Claiming all the tax credits you are due ensures you receive your correct entitlements and pay the right amount of tax.  There is a four year time limit on claiming tax refunds, so it is important to claim your entitlements on time. From 1 Jan 2021, you can claim your entitlements for tax years 2017 to 2020.

Note

You must claim your tax refunds for 2016 before 31 December2020.

Unemployment repayments

Unemployment repayments must be claimed before the end of the year. If you became unemployed during 2020 and think you are due a tax refund, you will need to complete an Income Tax return.

If you become unemployed in early January 2021, you can claim any unemployment repayment online through myAccount.

Revenue Receipts tracker

The Revenue Receipts Tracker App (RRTA) is a free app which allows you upload images of your receipts to Revenue. You can manage your receipts and expenses on the go.

It gives you quick and easy mobile access to record, provide details and keep track of your receipts. It will make it easier for you to complete your income tax return and claim the reliefs due.

Week 53

‘Week 53’ occurs where 30 and 31 December are pay days and a total of 53 pay days arise in the year. (27 paydays if paid fortnightly or 14 paydays if paid four-weekly)

If your employment has been registered with Revenue, your employer will allow credits and tax/USC cut-off points for the Week 53 payment on a Week 1 basis as follows:

  • Weekly paid: One week’s credits and tax/USC cut-off points (the amount shown on your tax credit certificate for your employment divided by 52)
  • Fortnightly paid: Two weeks’ credits and tax/USC cut-off points (the amount shown on your tax credit certificate for your employment divided by 26)
  • Four-weekly paid: Four weeks’ credits and tax/USC cut-off points (the amount shown on your tax credit certificate for your employment divided by 13)

You can view your tax credit certificate in My Documents in myAccount.

Your employer will deduct emergency tax from your Week 53 payment if:

On review of your final tax liability for the year you will be granted the benefit of certain increased tax credits and cut-off points against your wages/salary for your final payday. You do not need to do anything in these circumstances, as your employer will report this information to us.

Taxation of Temporary Wage Subsidy Scheme (TWSS) and Pandemic Unemployment Payments (PUP) for employees

The TWSS payments are subject to Income Tax and Universal Social Charge (USC).

Income Tax and USC is due at the end of the year.

The Department of Social Protection has provided Revenue with the total amounts earned by recipients throughout 2020, including Pandemic Unemployment Payments (PUP).  Pandemic Unemployment Payments are subject to Income Tax only. Tax on Social Welfare payments, including PUP, are calculated on an ‘earnings basis’. These payments are subject to income tax based on when the payments were earned, rather than when they were received. All PUP payments paid in the period March 2020 to 13 January 2021 were earned in 2020 and included in your Preliminary End of Year Statement

Your Statement of Payments from the Department of Social Protection may describe these as Exceptional Needs Payments.

From 1 January 2021 PUP payments earned in 2021 are taxable in real-time.  

Payments made to employees under the Employer Refund Scheme (ERS), will be also included in employee end of year statements. This scheme operated from 12 March 2020 to 25 March 2020. Payments made under the ERS amounted to €203 per week and are subject to Income Tax only.

Underpayment of Income Tax and USC

There are a number of reasons an underpayment can occur. For a breakdown of this please see What to do in an underpayment position.

Where you have an underpayment of Income Tax or USC of less than €6,000 in 2020 you will have the option to:

  • pay your liability partially or in full through Revpay in myAccount
  • have the full or remaining liability collected, interest free, by reducing your future tax credits from 2022 over a maximum period of four years.

For underpayments for 2020 in excess of €6,000 a notice will issue setting out the amount owed. If you wish, you can pay the amount owing through RevPay in myAccount or should you wish to discuss repayment options that best suit your particular circumstances, you can contact us through MyEnquiries.

Information will also be included on your Statement of Liability explaining how the liability will be collected.

Next: Important end of year information for employers