Top

Misclassification Disclosure – Technical Adjustment (Karshan Settlement Opportunity)

PSC Accountants & AdvisorsFeatured Misclassification Disclosure – Technical Adjustment (Karshan Settlement Opportunity)

Misclassification Disclosure – Technical Adjustment (Karshan Settlement Opportunity)

Company Name

Address

XXXXX

XXXXX

 

Date XX.XX.XX

 

 

 

Re:      Misclassification Disclosure – Technical Adjustment (Karshan Settlement Opportunity)

Company Name XXX

Company Tax Ref. XXX

 

Dear Sirs

 

Having reviewed the payments made to all individuals, I now confirm that the below should have been treated as employees. Please note that the misclassification has arisen from behaviour which is neither careless nor deliberate. It arose as a result of a genuine misunderstanding of the application of the employment status tests. As a result, I wish to make a misclassification disclosure for the years 2024 and 2025. This disclosure is being made on a best-efforts basis in accordance with Revenue’s Karshan Disclosure Opportunity guidance.

 

Basis for classifying each worker as an employee under the five-step framework:

  • Employee 1 – XXX
  • Employee 2 – XXX
  • Employee 3 – XXX

 

Employee 1 Employee 2 Employee 3 Total
Tax year 2024 2024 2024
Employer registration number
Employee first name
Employee last name
Employee PPSN
Commencement date
Cessation date (if any)
Gross pay
Pay for PAYE
Pay for USC
Pay for employer PRSI
Pay for employee PRSI
PAYE payable
USC payable
Employer PRSI payable
Employee PRSI payable
Insurable weeks
Total        

 

 

Employee 1 Employee 2 Employee 3 Total
Tax year 2025 2025 2025
Employer registration number
Employee first name
Employee last name
Employee PPSN
Commencement date
Cessation date (if any)
Gross pay
Pay for PAYE
Pay for USC
Pay for employer PRSI
Pay for employee PRSI
PAYE payable
USC payable
Employer PRSI payable
Employee PRSI payable
Insurable weeks
Total        

 

Payment of €XXX has already been made via REVPAY in settlement of the PAYE, USC, employee PRSI and employer PRSI liabilities arising from this disclosure. / [Alternatively] I wish to enter into a Phased Payment Arrangement to settle the above PAYE, USC, employee PRSI and employer PRSI liabilities arising from this disclosure of €XXX. I understand that interest will be applied over the repayment period.

 

I will await PAYE self-assessments to issue and then I will create a PRSI record for each employee using the ROS manual payroll submission facility as recommended by Revenue.

Yours sincerely

 

 

________________________
Director name

Director

Company Name