Transition from 2019 to 2020

Income earned in 2019 but paid in 2020

Payments paid on or after 1 January 2020 are to be reported to Revenue when the payment is made. This is regardless of when the money was earned. 

Payments made after 1 January 2020 should use the tax credits and rate bands for 2020 to the payment.

Where payments are made after 1 Jan 2020, you should use the tax credits and rate bands included on the 2020 RPN.

This applies even if the payment refers to work carried out in 2019. You should report this payment to Revenue on or before the payment date. The payment will be included in the monthly statement for the month in which the payment was made.

You should verify with your software provider if you are unsure of the process to follow within your own software package.

The employer should use the Revenue Payroll Notification (RPN) for that period in calculating the deductions.

Post Cessation payments 

To report a post cessation payment where the employee has ceased employment in the previous year:

  • you should submit a new RPN request
  • do not supply an employment commencement date
  • make a payroll submission for the post cessation payment
  • include the original employment ID and original cessation date
  • include the payment date (this is the date the post cessation payment is made).

Next: Requesting a Revenue Payroll Notification (RPN) for 2020