Employer end of year return (P35)

What employee pay details go into a P35L?

Note

2018 is the final year for which a P35 is required.

From 1 January 2019, the P35 is abolished in line with PAYE Modernisation.

For your current requirements, please see Employer obligations from 1 January 2019.

Gross pay for Universal Social Charge (USC) purposes

Input gross pay here before any deductions are made. Gross pay includes all wages, salaries, notional pay, bonuses, overtime, commission and holiday pay.

USC must be operated on gross pay before any pension contributions are deducted. All payments from the Department of Employment Affairs and Social Protection (DEASP) are excluded from gross pay for USC purposes. This includes Illness Benefit.

Total taxable pay

Input gross pay here, excluding any regular payments made by the employee into a fund towards a pension (superannuation contributions). These contributions are allowable for Income Tax purposes and are deducted from pay by the employer. The contributions must be made to a Revenue-approved fund or scheme.

PAYE must be operated on the total taxable pay. Taxable illness benefit should not be included in total taxable pay.

Gross pay for employee Pay Related Social Insurance (PRSI) purposes

Input gross pay here, including notional pay (or benefits in kind – BIK), if applicable. PRSI is also fully chargeable on payments made by the employee to the following:

Local Property Tax (LPT) may be included for an employee on a Tax Credit Certificate (P2C) notification. If so, you must deduct LPT from the relevant employee’s salary during the course of the year. At year end, the amount of LPT deducted must be included on the employee’s P35L. The total amount of LPT deducted for all employees must be included on the P35 Declaration.

Next: What other details go into a P35L?