By now (January 25th 2011), Employers should have submitted their final P30 for 2010 to the Revenue Commissioners. This P30 was due to be received by the Revenue Commissioners no later than January 15th. Whilst some employers file Monthly P30s and some avail of certain exemptions that entitle them to the Quarterly P30 filing option, both groups were due to file their final P30 for 2010 in January 2011. Having filed these final P30s for 2010, the final Employers return that is required for 2010 is the 2010 P35 which must be received by the Revenue Commissioners on or before February 15th. Failure to file a P35 by the deadline will incur a penalty. This P35 Return is a summary of the entire payroll for the Employer for 2010 and is broken down by Employee to show:
- Gross Salaries paid
- PAYE deducted
- Employees PRSI deducted
- Any other deductions made from payroll, e.g. PRSAs
- The PRSI Class(es) paid by each Employee during the year (commonly referred to as the ‘Stamp’)
The P35 Return also calculates the overall amount payable by an Employer to the Revenue Commissioners for 2010. In theory, this should equal the amounts paid with the individual P30s that were submitted during 2010. If there is a shortfall, this payment must be submitted along with the 2010 P35 Return. This facility gives the Employer the opportunity to correct any errors that may have been made during the year. If you are using Payroll Software, the P35 will be automatically created for you as part of the Year End run. The most common errors in generating a P35 Return are incorrect or missing PPS numbers.
As mentioned earlier, there are penalties for those Employers who do not file their P35 by February 15th so you should ensure you do not miss this filing deadline. It is also worth noting that if there are any changes to the 2010 Payroll after the P35 has been paid, e.g. the payment of a Bonus, it is possible to file a revised P35 Return. This is known as a Supplementary P35.