Starting or leaving employment (P45)

The death of an employee or their spouse or civil partner

Note:

The information on this page refers to employments that ceased on or before 31 December 2018.

You are not required to issue a P45 for employments which cease after 31 December 2018. For current requirements, see Employer obligations post 1 January 2019

Death of an employee: arrears payments to personal representatives

You may know the amount of outstanding pay when you prepare the P45. If so, you must include it in the pay figure on the form, and operate Pay As You Earn (PAYE).

Arrears payment made in the year of death

If you have a Tax Credit Certificate (P2C) they must deduct tax on the arrears. You must refer to the former employee’s tax credits and tax and USC cut-off points. You must do this as though the payment is being made at date of death.

If you have no P2C, you must apply the emergency basis of tax deduction to the arrears.

You must complete a P45 supplement and send it to the employee's Revenue office immediately.

Arrears payment made in the year(s) following the year of death

A former employee might receive a payment of arrears in the year(s) following the year of death. You must apply the emergency basis of tax and USC deduction to the arrears.

On the payroll record for the Income Tax week or month in which payment is made you must enter amounts for:

You must complete a P45 supplement and send it to the employee's Revenue office immediately.

Death of a spouse or civil partner

Under joint assessment the tax credits and reliefs available to a couple in a marriage or civil partnership can be divided between each spouse or civil partner to suit their circumstances. One spouse or civil partner is nominated as the 'assessable spouse' or 'nominated civil partner'. The assessable spouse or nominated civil partner is responsible for completing the couple’s tax return and is chargeable to tax on their joint income. The other spouse or civil partner is referred to as the 'non-assessable spouse' or 'other civil partner'.

Where the assessable spouse or nominated civil partner dies and the non-assessable spouse or other civil partner remains in employment, Revenue will issue a new P2C.

The employer should set up a separate pay record with effect from the date of death of the employee's spouse or civil partner.

Revenue may allocate a new Personal Public Services Number (PPSN) to the widow(er) or surviving civil partner. Where this happens Revenue will notify the employer of the new PPSN.

It will be necessary to have two separate entries on the end of year return (P35). One entry will be for the period from 1 January to the date of death of the employee's spouse or civil partner. The other entry will be for the period commencing from the date of death of the employee's spouse or civil partner.

See the PRSI guide from the Department of Employment Affairs and Social Protection (DEASP).

Revenue will notify the employer of any change in the employee's tax credits and tax and USC cut-off points. We will also give instructions in regard to the employee's PPSN and PAYE record. In the meantime the employer must operate PAYE in accordance with the latest P2C issued.

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