Tuesday, 5 February 2019

Ceisteanna (157, 159, 175)

Pearse Doherty

Ceist:

157. Deputy Pearse Doherty asked the Minister for Finance if some or all substitute teachers are being treated in their tax affairs by the Revenue Commissioners as being on a cumulative basis instead of a week-one basis; the reason this is the case in view of the average loss in tax on a monthly basis; when the matter will be resolved; when teachers will be refunded; and if he will make a statement on the matter. [4976/19]

Amharc ar fhreagra

Willie O'Dea

Ceist:

159. Deputy Willie O'Dea asked the Minister for Finance if he is aware that as a result of IT changes in the PAYE system many persons, including a number of public servants, are paying emergency tax at a higher rate than they should be paying; the steps he is taking in view of the financial hardship caused; and if he will make a statement on the matter. [4983/19]

Amharc ar fhreagra

Michael McGrath

Ceist:

175. Deputy Michael McGrath asked the Minister for Finance if his attention has been drawn to the difficulties being experienced by substitute teachers whose payments are subject to emergency tax (details supplied); if he has been in contact with the Department of Education and Skills with a view to putting a resolution in place; and if he will make a statement on the matter. [5560/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 157, 159 and 175 together.

The Deputies will be aware that new administrative arrangements for PAYE (PAYE Modernisation) commenced on 1 January this year. These new arrangements do not affect the way income tax and other statutory deductions are calculated under the PAYE system, but do change the way employers report payroll information to Revenue. In most cases, there has been a seamless integration of the new real-time reporting arrangements into employers’ payroll systems without any impact on employees.

Revenue is aware that when DES reported pay and statutory deductions details for some substitute teachers and other staff during January, it inadvertently included a ‘cessation of employment’ date in the payroll submissions. This had the impact of stopping or reallocating those employees’ tax credits and rate-band entitlements, which in turn resulted in them suffering over-deductions of tax from their DES salaries.

Revenue understands that the issue has now been resolved by DES for all newly engaged substitute teachers and other staff and it (DES) is working to resolve the problem as quickly as possible for those who were impacted on in the earlier pay run/s. Revenue has assured me that it is in daily contact with DES and has offered every assistance, including technical expertise, to ensure the issue is rectified and any over-deductions refunded as quickly as possible.