Distinguish between a P45 and a P60
(i) A P45 is a form issued by an employer to an employee when they leave employment - Leaving Cert Business - Question 2 - 2003
Question 2
Distinguish between a P45 and a P60
(i) A P45 is a form issued by an employer to an employee when they leave employment. It serves as a cessation certificate that o... show full transcript
Worked Solution & Example Answer:Distinguish between a P45 and a P60
(i) A P45 is a form issued by an employer to an employee when they leave employment - Leaving Cert Business - Question 2 - 2003
Step 1
(i) Distinguish between a P45 and a P60
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Answer
A P45 is issued when an employee leaves a job, detailing their pay and tax information up to that point, while a P60 summarizes an employee's annual earnings and tax deductions at the end of each tax year.
Step 2
(ii) Distinguish between a P45 and a P60
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Answer
The P45 has sections that are sent to both the employee and the tax office, while the P60 provides a comprehensive overview of total earnings, tax, and PRSI contributions for the entire year, serving as a record for annual income assessment.
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