The week 1 basis is also known as 'non-cumulative basis’ or month 1 basis for monthly employees.
You tax each payday on its own, separate from previous weeks. Pay and tax credits are not accumulated from the previous 1 January.
Since when this change is applied:
Employers have been notified by Revenue to operate on a Week 1 basis since 21st June 2020.
This may mean that if you have not fully utilized all your tax credits and allowances in 2020, you could be overpaying tax. It is important that you review 2020 and submit a tax return to ensure you receive a refund of any overpayment of tax.
Employees that were Temp laid off got paid by the Department of Social Protection. COVID-19 Pandemic Unemployment Payment PUP was paid directly to Employee’s account and Revenue is looking to gather the total amount paid to employees as PUP and calculate the net tax liability.
The Revenue Website says:
“This is a preliminary calculation only. It will show if you have paid the correct amount of tax and USC for the year. It is based on the information held on Revenue’s records. The Preliminary End of Year Statement for 2020 will include any wage subsidy payments reported by your employer. Additionally, If you received the Pandemic Unemployment Payment from the Department of Social Protection, this will also be included.”
How to report your total earnings to Revenue
Once you have received the total amount of TWSS or PUP paid to you please follow the below link to report this to Revenue.
- Sign in to myAccount through ROS.ie
- Click on Review your tax 2017-2020
- Select 2020 as the tax year
- There will be two Review Types “Statement of Liability” and “Employment Detail Summary”
- If you have the Employment Detail Summary available only you can view this
- You can request the Statement of Liability and update the PUP information into it.
- If both documents are at Available Status, you can download or view the documents