Finance (Local Property Tax) Act 2012 section 72

Deduction by employer

Section 72 sets out how employers must calculate and deduct local property tax (LPT) from employees' pay when directed to do so by Revenue.

• Employers must deduct LPT at the same time and frequency as the employee's normal pay cycle
• The amount to deduct on each payday is calculated by dividing the total LPT by the number of remaining paydays in the direction period (A/B formula)
• If net pay on a particular payday is insufficient to cover the LPT deduction, the employer must make up the shortfall from later payments and notify Revenue of the under-deduction
• If the employer cannot recover the full shortfall before the direction period ends, they must notify Revenue as soon as they become aware of this