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