P60 and Income Levy Certificates

When an Employer finalises their 2010 P35 for submission to the Revenue Commissioners, they should also issue the 2010 P60 and Income Levy Cert to each employee who was on the payroll at year end. There is a legal obligation to issue both a P60 and an Income levy Cert to every Employee and these documents should be issued as soon as the P35 is completed. If you are using Payroll Software, a P60 and Income Levy Cert should automatically be generated as part of the Year End process.

A P60 shows the Gross Salary earned by each employee during 2010 and the amount of PAYE & Employees PRSI deducted, together with the class/ classes of PRSI paid by the Employee during the year. Total PRSI paid during the year is also shown and by deducting the Employees PRSI from this we get the amount of Employers PRSI paid during the year.

Any employees who were on the payroll at the start of 2010 but have left during the year will have received a P45 on leaving and will not receive a P60. For Employees who joined the payroll during 2010, their P60 should contain the total Gross Salary and Deductions for all employments during 2010, provided that the details of their previous employment were properly entered on the payroll system when they were added to your payroll. If you are unsure about this, you should check with your accountant.