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Reconcile PAYE & USC for 2020 with Revenue.ie

This TWSS reconciliation process can be used at the end of the 2020 tax year to balance statutory deductions as outlined on your payslip for the final payment of the year with revenue.

Complete End of Year 2020 PAYE and USC Calculator

The Revenue Commissioners issue notices of determination of tax credits and standard rate cut-off point in advance of the New Tax Year. This shows the rate of tax applying to individuals income and the tax credits that reduce the tax payable, based on their reported personal circumstances. If individuals' circumstances change during the year, Revenue will issue a revised certificate.
If you hold a medical card and you have told Revenue and you are on the reduced rate, place "Y" in the medical card field. Enter the annual tax credits and standard rate cut-off in the
cells provided for these amounts in the End of Year PAYE and USC calculator. The Taxable Pay and TWSS values are available on your payslips. A statement of covid unemployment payments is available on MyWelfare.

Watch the instruction video for help with the completion of the calculator. Note the differences between your Income Tax and USC liability as per the calculator and what you paid as per your last payslip.

View TWSS subsidy payments on revenue

Log into “myAccount”. Details of TWSS subsidy payments reported to revenue from your employer are viewable in your Revenue record. This can be accessed in your “myAccount”. Once
you are logged in you can see whether your employer reported the correct subsidy paid to you in your wages.
To view this information in “myAccount”. On the ‘PAYE Services’ tab click on:

a. Manage your Tax 2020 link
b. "View" beside the relevant employment
c "View" next to any payroll submission you wish to see.

Verify TWSS amounts on Revenue

During he transitional phase which ran from 26th March to 3rd May 2020 employers were not required to report Covid-19 Wage Subsidy Scheme TWSS payments they made to employees in their pay payroll reports to Revenue.  It is vital that all employees compare their payslips with their revenue account for the dates during the transition phase to ensure that the subsidies paid to them by their Employer matches what was reported on their behalf to Revenue.
Resolve any differences between these amounts with your employer in the 1st instance. If you fail to resolve the issue report the matter to Revenue via MyEnquiries.

Verify Covid-19 Pandemic Unemployment Payments PUP amounts on Revenue

Match the total received if any to the amounts reported on Revenue as Payments made by Social Welfare do not generally appear in statements from Revenue. Resolve any differences between these amounts with Revenue via MyEnquiries.

Access your Preliminary 2020 End of Year Statement

1. Log onto the “myAccount” ‘PAYE services’ section of the Revenue.ie website.
2. To access your preliminary statement, click on ‘Review Your Tax 2017-2020′
3. Choose option to ‘request’ your preliminary statement of liability.

Compare details between Revenue and BPPM calculator.

Your Revenue statement will tell you whether you have overpaid or underpaid tax and by how much. BPPM's Calculator will be able to verify if this amount is correct or not. The preliminary statement results for Income Tax and USC should equal the differences you noted in 1 above between your Income Tax and USC liability as per the calculator and what you paid as per your last payslip. The only reason for any discrepancy is a difference between what was reported to revenue and what you actually received as Taxable Pay, TWSS and the Covid-19 Pandemic Unemployment Payment (PUP).

The preliminary end of year statement is the kick-starting point for the next step. Before moving forward from here you should have completed 1 to 6 above and fully resolved any issues arising.

File an Income Tax Return

Filing a tax return gives taxpayers the opportunity to claim credits or tax reliefs to offset or reduce any tax due on the Ireland revenue TWSS or PUP. Revenue have indicated that taxpayers will be encouraged to file an income tax return to finalise the tax liability or tax refund. Revenue do not normally ask PAYE taxpayers to file tax returns, but then again these are not normal times and Revenue have been to the forefront in providing quality step by step information. If PAYE earners have claims for medical expenses, non-routine dental expenses, or any of the various tax credits and reliefs which may be due, they must complete a tax return to claim credit for these expenses and reliefs. If you find that you have been deducted more than you should have then you must complete a tax return to claim refunds of any PAYE or USC overpaid. Advice from BPPM on filing an income tax return is:

a. Gathe
r all the detail for medical expenses, non-routine dental expenses, or any of the various tax credits and reliefs which may be due for the years you have not already claimed to a maximum of the last four years.

b. Wait for the staycation subsidy S
tay and Spend Tax Credit Scheme to finish at the end of April 2021. You must make a claim for the Stay and Spend tax credit when completing your annual tax return. Taxpayers are eligible to claim the Stay and Spend tax credit if they have both:

(i) incurred qualifying expenditure of at least €25 from 1st October 2020 to 30th April 2021

(ii) sufficient IT or USC liabilities to offset against the credit.

Pay Any Liability In Full or In Part During 2020

You can either fully or partially pay any IT liability through the 'Payments/Repayments' facility in myAccount. Alternatively Revenue will collect the full or any remaining liability, interest free, by reducing your tax credits over four years (2022 to 2025). The reduction of tax credits will start in January 2022. Advice from BPPM relating to paying your liability in full is to consider the benefits of this course of action in tandem with current plans to cease the Help to Buy Scheme. The maximum HTB refund is calculated at the lesser of:

(i) €30,000 (up from €20,000)

(ii) 10% (up from 5%) of the purchase price of a new home. For self-builds this is 10% (up from 5%) of the approved valuation of the property.

(iii) the amount of Income Tax and Deposit Interest Retention Tax (DIRT) you have paid for the four years prior to making the application.

Please note that BPPM's End of Year PAYE and USC calculator only works from taxable earnings. If you have non-taxable payments or pension contributions, be sure to enter only taxable earnings. PAYE taxpayers need to submit an income tax return if on a Week 1 basis or on Emergency Tax. This process does not apply to those not in employment at the end of the year and in receipt of unemployment benefit or assistance.


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