Get a Handle on Payroll – What You Need to Know About Emergency Tax

Emergency Tax

Share This Post

(2) What You Need to Know About Emergency Tax


When you take on a new employee, you may not know what tax band they should be in as this can be affected by their individual circumstances and/or their earnings from a previous employment. Until it becomes clear what the employee’s tax situation is, you will need to deduct Emergency Tax from their pay.


Provided you know the employee’s Personal Public Service Number (PPSN), normal Emergency Tax rules will apply. This means that the single person’s Income Tax rate band (20%) applies for the first four weeks of employment and the higher rate (40%) then applies from Week 5 onwards.


If you do not know your employee’s PPSN,  you will need to deduct tax at the higher (40%) rate from the outset.


While your employee is on Emergency Tax, an emergency rate of Universal Social Charge (USC) also applies. This is a flat percentage deduction (8% in 2023) that applies to all income.


When you receive a Revenue Payroll Notification (RPN) from Revenue for your employee, this will tell you the tax band, credits and tax rates that apply. This will enable you to take your employee off Emergency Tax.


Need more information on emergency tax or help with operating your payroll? Contact GroForth for details of our payroll services.



Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

How to manage payroll headaches

Payroll Headaches

Here are our payroll pain points—What are yours?   Every employee expects to be paid on time and many count on it. So, when things

Do You Want To Boost Your Business?

drop us a line and keep in touch

Thank you in advance for contacting me.

– Sarah 

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
GropForth Logo

Thank you

We will respond to your request
as quickly as possible.