Local Property Tax – Employers Responsibility

Posted in Our Blog, Property Tax, Taxation

local property tax imageThe Local Property Tax (LPT) deadline for filing paper returns has now passed and individuals liable to the LPT have until 28 May 2013 to file the LPT return electronically.

When filing the return the Revenue gives property owners the option to pay their LPT for 2013 in one single payment or to phase their payments over the period from July to December 2013. One of the phased payment options being made available is the deduction at source from salary or occupational pension.

Therefore employers will be required to make this facility available to their employees from July 2013 onwards. Revenue will notify the employer, via the employers’ copy of the ‘Tax Credit Certificate’ (P2C), to deduct LPT from the employee’s net salary as appropriate.  The employer must commence deductions from July 2013 and spread the deductions evenly over the pay periods occurring between July and December 2013.

The employer will be required to account for and remit the deducted LPT to Revenue on Form P30 and the deductions will also be shown on the employees P60 and P45 where appropriate.

Further information is available on the Revenue website regarding how the deductions at source will operate or you can contact the Employers helpline on 1890 25 45 65.

With the continued changes to payroll calculations and employer obligations it might now be time to look towards outsourced payroll solutions, so that you can focus more on your area of expertise, while ensuring that your payroll will be processed in a compliant and tax efficient manner.

If you need to discuss the above please call us on 021 – 4310266 or email us at pm@parfreymurphy.ie.

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