What is Emergency Tax?
There are emergency tax rates for Income Tax and Universal Social Charge.
Emergency taxes allow an employees income to be processed and submitted to Revenue in the absence of the employee having a valid PPS number or Revenue Payroll Notification. However, the taxes applied may be higher than the employee is expecting.
Please refer to The Revenue guidance documents here:
PRSI operates on a different set of calculations not affected by emergency tax.
What tax rates are applied?
Employees who do not have a PPS number will immediately go onto the highest level of personal taxes.
Employees who do have a PPSN, but may not be registered with Revenue, will find that their income tax rates get progressively higher over time.
Please refer to current emergency tax rates here:
How to get off Emergency Tax?
The first step is for the employee to get a PPS number. This can be applied for at the Department of Social Protection.
The next step is for the employee register with myAccount on the Revenue website here.
The employee is the only person that can complete to above steps.
The final step is for the employee or the employer to register their employment with Revenue. The employee can do so under myAccount in the Jobs and Pensions section.
The employer can register the employee over Parolla by requesting a new RPN.
Once an employee has a valid Revenue Payroll Notification, and is put unto Cumulative Tax Basis, then any excess tax deducted under the Emergency Tax rates will be refunded to the employee via payroll.