This infotype stores an employee's PAYE details.

An employee’s tax table may change or you may receive new Tax-Free Allowance figures. This information can come from the Revenue Commissioners at any point during a person’s employment.

All the information needed to calculate PAYE for an employee is stored in this record. The Payroll Accounting component uses this data to make the correct tax deductions from wages and salaries.

Backdated changes to the infotype Tax Data (0359) record does not trigger Retroactive Payroll Accounting, as the tax is adjusted by cumulative calculations.

The Payroll Accounting component uses the employee’s Tax Basis and Tax Table to calculate tax deductions or refunds.

You must create a Tax Data (Infotype 0359) record for a new employee before running payroll. If employee tax details are not available then the employee must be placed on an Emergency tax basis.

The Withhold Refund indicator is used to withhold tax refunds to employees under suitable conditions.

It is advisable that you create a new Tax Data record for an employee whose tax details change. The validity begin date of this record must be the date from which the new details are valid.

Retroactive accounting is not triggered if you create a Tax Data record after you include the employee data for payroll accounting.

Every employee that is processed through Payroll Accounting must be assigned to an Employer Registered Number (ERN). This ERN is used to group employees during year-end- reporting.

A default value can be specified for the ERN by making the relevant customizing entries in the IMG by following the path Payroll: Ireland ® Employer registered information ® Default employer registered information.

After issuing a P45 to an employee who leaves the company, you must maintain the following information in the infotype Tax Data Ireland (0359):

1. Set the P45 issued indicator, and
2. Enter the date on which the form was issued.

This ensures the employee is only issued with one P45 form.

The P45 issued indicator can also be automatically be set by running the P45 form report (HIECP450).