Withholding Taxes, Shadow Payroll, and Section 984 Dispensation

As an Irish private sector employer, you can use this option under Section 984 TCA 1997 to withhold PAYE on income relating to Irish workdays only.

The Pay As You Earn (PAYE) calculation card component and component details include Withholding Taxes for non-resident employees working both in and out of state.

Such employees are taxed only for the income from days they've worked in Ireland. To use this option for these employees, you need to:

• Create an Information element for Withholding Taxes.
• Add an input value Amount with these details:

  Field	Value
  Special Purpose	Primary output value
  Unit of Measure	Money

• Add the subclassification rule Information Subject to Section 984 Dispensation.
• Adding the subclassification rule automatically creates the balance feeds to Gross Earnings and Gross Pay.

• The appropriate fast formula takes the Section 984 Dispensation record as input, and returns it as a Run Result in the payroll for reporting purposes, when required.

• On the employee Statutory Deductions Information calculation card, PAYE Additional Information Details, select the Section 984 Dispensation option.
• After you run payroll, the calculated values in the run results details should include withholding tax information for the employee.

Shadow Payroll

Shadow Payroll processing includes withholding of net pay for employees with sourced employment income outside of Ireland.

The process continues to calculate statutory deductions as if the employee is being paid in Ireland, although the employee doesn't receive the payment. The application generates a Shadow Payroll Withholding amount element entry to reduce the Net Pay to 0.