Feb 2019
22
Employment (Miscellaneous Provisions) Act 2018
The Minister for Employment Affairs and Social Protection, Regina Doherty has confirmed the new Employment Bill, which has been in the pipeline now for a number of years, will come into force on the 4th March. The Bill is being introduced to ‘improve the security of working hours for employees on insecure contracts and those working variable hours’, common in (but not exclusive to) service industries such as hospitality, tourism and retail. These industries often rely on flexibility in the employment contract and therefore the introduction of this new Bill will require them to take note.
The new Act makes certain breaches a criminal offence; where the employer does not comply with the new obligations in the Bill to provide the required information within one month, can lead to criminal prosecution. Fines on conviction could be up to €5,000 or imprisonment of up to twelve months or both. Directors, managers, secretaries or other officers of a company can be individually liable, i.e. be prosecuted individually for offences.
- In summary, the new Act will:
- Prohibit the use of Zero Hour contracts, save for exceptional circumstances
- Obligate employers to notify new employees of five core terms of employment in writing within five days of commencing employment
- Create a new entitlement to ‘Banded Hours’ contracts
- Provide for minimum payments to employees who are required to be available to work but are not actually called to work
The Act also introduces an anti-penalisation provision whereby an employer may not penalize an employee for exercising their rights under the 1994 Terms of Employment Act. An employee who is penalized can be awarded compensation of such amounts as the WRC considers just but will not exceed four weeks remuneration.
The new Act will bring significant changes for Irish employers and employees and according to Minister Regina Doherty; the Act is a “once-in-a-generation reform of our labour market.”
Please visit Brightcontracts.ie for more information on the new Employment Bill which has been in the pipeline now for a number of years and is to be enacted on 4th March 2019.
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Thesaurus Payroll Software | BrightPay Payroll Software | Bright Contracts
Feb 2019
19
What are “banded hours”?
The Employment Act 2018 creates a new right for employees whose employment contract does not accurately reflect the reality of the hours they work on a consistent basis. After a reference period of 12 months, employees will be able to request in writing to be placed in a band of hours that better reflect their average weekly hours worked. In response, employers are obliged to place the employee in the appropriate band and should do so within four weeks of receiving the employee’s request.
The appropriate band is determined by the employer on the basis of the average number of hours worked by the employee per week during the reference period.
The appropriate bands are laid down in law as set out in the below table.
| Band A: | 3 to 6 hours |
| Band B: | 6 to 11 hours |
| Band C: | 11 to 16 hours |
| Band D: | 16 to 21 hours |
| Band E: | 21 to 26 hours |
| Band F: | 26 to 31 hours |
| Band G: | 31 to 36 hours |
| Band H: | over 36 hours |
An employer may refuse to place an employee in a band in one of the following circumstances:
- Where there is no evidence to support the employee’s claim
- Where there have been significant adverse changes to the business during or after the reference period
- Due to exceptional circumstances, an emergency or unforeseeable circumstances beyond the employer’s control
- Where the average hours worked by the employee were affected by a temporary situation that no longer exists
In determining the 12 month reference period, a continuous period of employment immediately before the legislation is to be enacted on 4th March 2019 will be reckonable towards the 12 month reference period. Please visit Brightcontracts.ie for more information on the new Employment Bill which has been in the pipeline now for a number of years.
The Bill is being introduced to ‘improve the security of working hours for employees on insecure contracts and those working variable hours’, common in (but not exclusive to) service industries such as hospitality, tourism and retail. These industries often rely on flexibility in the employment contract and therefore the introduction of this new Bill will require them to take note.
To keep up with the latest payroll news, check out our new Bright website. There, you'll be able to register for any of our upcoming payroll webinars and download our payroll guides.
BrightPay Payroll Software | Thesaurus Payroll Manager | Bright Contracts
Feb 2019
9
The P35 deadline is fast approaching
The P35 deadline is fast approaching, the deadline is February 15th. The deadline for an employer who pays and files electronically via Revenue Online Services (ROS) is extended to the 23rd of February.
Although PAYE Modernisation is now live, it is important for employers to remember that this end of year return is still required for the 2018 tax year. Failure to make a P35 return by this date may result in a fine.
With PAYE Modernisation, employers are required to send a real time payroll submission to Revenue each pay period. This submission is similar to the P35, and contains details of each of your employees, including PAYE, PRSI, USC and LPT. As Revenue will be receiving the periodic file submissions in real time, from 2019 onwards this end of year process for employers is no longer required. 2018 is the final year for which a P35 is required.
Please note, the deadline for issuing employees with P60s is also February 15th. Tax year 2018 is also the final year in which P60s will be issued to employees.
Help Documentation
To view our online documentation click on the links below:
Extended Customer Support Hours
This year, our support team have extended and Saturday opening hours until Saturday the 16th of February 2019.
Our opening hours for this period are as follows:
- Monday to Thursday - 8 am to 7 pm
- Friday - 8 am to 6 pm
- Saturday - 9 am to 1 pm
Feb 2019
5
How to avoid PAYE Modernisation mistakes
PAYE Modernisation is now fully operational and has brought many changes to the payroll process. Overall, it brings many benefits to all stakeholders involved - employers, employees and Revenue.
It is important that employers are aware of and understand their new real time reporting obligations. Revenue has strongly advised employers to review their payroll processes and systems to ensure that they meet the new PAYE Modernisation requirements.
Employers need to be aware that mistakes can be very costly. An employer is responsible for deducting the tax and paying over the liability to Revenue, and so non-compliance will result in interest to be paid by the employer. Employers who fail to comply can expect Revenue intervention with non-compliance penalties and fines.
The current penalty regime includes a fixed penalty of €4,000 for each breach of the PAYE legislation. It also includes a fixed penalty of €3,000 imposed on the company secretary for each breach. These penalties can be imposed on a per-item basis, so if you are even a mid-sized employer, these penalties can build up.
Download our free eBook for employers - Surviving PAYE Modernisation. In this guide, we discuss the key changes with PAYE Modernisation and what employers need to do to avoid non-compliance penalties from Revenue.
Interested in finding out more about PAYE Modernisation? Thesaurus Software and Revenue have teamed up for a new series of free PAYE Modernisation webinars. During the webinars, we will look at what has happened since PAYE Modernisation has gone live and what challenges businesses are facing.
Click here to book your place on one of our upcoming webinars.
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Feb 2019
1
ROS digital certificates - why you need one ASAP
Fun fact: Ireland is considered 1st in the EU when it comes to paying taxes!! Yes, I was just as shocked as you are! 1st in the EU at talking the ear off you and definitely 1st in the world at having the almighty craic, but paying taxes? Gosh not only are we funny and friendly, we’re honest and hardworking too! We’re so into our taxes and payroll that we are completely revolutionizing the way PAYE is reported to Revenue starting in the new year. When I say ‘we’, I mean it was the Irish government.
Yes that’s right folks I’m talking about PAYE Modernisation, the biggest (and best) change to PAYE since its introduction back in 1960. While, not everyone will agree, PAYE Modernisation will most definitely be a good thing for employers and employees. But today I want to talk about a very important certificate.
What are digital certificates? Revenue uses “digital certs” to allow business customers to electronically access their Revenue Online account and “sign and submit” their returns via the electronic channel (ROS). Essentially the process of electronically “signing and submitting” acts in lieu of a legal signature and ensures that the transactions and communications between business customers and Revenue cannot be repudiated at a later stage. It is also required by agents who wish to access online services for their clients.
Not only is this quite nifty, it is super secure. We're talking pinky promise between two grown men secure, that the information is locked down! And this security has been credited with the success of the digital certificates, and is possibly one of the key factors contributing to us paying our taxes so well.
But Aoibheann, digital certs have been around for ages, why the sudden interest? What else is going to make a comeback, bootleg jeans? Well digital certs are now a hot topic thanks to the introduction of PAYE Modernisation which came into effect on January 1st 2019. I’ve talked before about how you should be using payroll software in order to utilise it effectively, but equally as important is downloading your ROS digital certificate. Without this digital cert the PAYE Modernisation features in your software won’t work. You need to be able to access the ROS servers directly from your payroll software and likewise for the payroll information to be able to upload seamlessly to ROS from your computer.
The digital cert may sound scary but Thesaurus Software have put together a step by step guide on how to save and reload your digital certificates. It’s so simple, you wouldn't even need to get one of your grandkids to it for you.
Well, what are you waiting for? Get moving! So you can focus on real issues, like what to wear to bingo on Thursday.
Written by Aoibheann Byrne | BrightPay & Thesaurus Payroll
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