Dec 2019
3
Time to Renew for 2020
So you want to renew your Thesaurus or BrightPay payroll software, but unsure of which licence to choose. Hopefully the information below will guide you:
Standard Licence
If in 2019, you purchased a Standard (one employer) licence, then your software will confirm which licence to order. But just as a reminder, here is the 2020 pricing structure:
- 1 - 10 employees = €159 plus VAT
- 11 - 25 employees = €239 plus VAT
- 26+ employees = €319 plus VAT
To pay by card, please click here. Remember, click on the “Add to Order” box and then choose the correct licence you wish to purchase by clicking on the little arrow.
If in 2019, you purchased Standard and Additional licence(s) (2 employers or more), and you process all employers on one computer or laptop, then you must buy a Bureau licence for 2020. Please ignore the order form in your 2019 payroll, it automatically reverts to a standard licence.
With the Additional licence now gone, please don’t buy 2 or more standard licences, it won’t work!
There is only one exception to the above, if the 2nd or 3rd (or both) employers have 2 or less employees, this is considered a “Micro Employer”. You’ll be happy to know Micro Employers are free once you purchase a Standard licence for your 1st company and the additional companies never go over 2 employees within the same tax year.
Bureau Licence
If in 2019, you purchased a Bureau (multiple employers) licence, then your software will confirm which licence to order. But just as a reminder, here is the 2020 pricing structure:
- 2 - 10 employers = €339 plus VAT
- 11 - 25 employers = €499 plus VAT
- 26+ employers = €659 plus VAT
Connect – Cloud back-up and employee self-service
All Connect licences will be registered through the 2020 software when released in mid-December. For further details on this new process and pricing structure, please click here.
Nov 2017
14
PAYE Modernisation – What do these changes mean for you?
The existing PAYE (Pay As You Earn) system was introduced nearly sixty years ago ensuring that correct deductions are made relating to pay and tax.
From 1st January 2019, this system for PAYE will undergo a long overdue update, but don’t worry, this update will benefit all involved – including employers and employees.
Employers –
PAYE Modernisation will change how employers report their payroll information to Revenue. Every time an employee is paid a file will need to be submitted (electronically) to Revenue, consisting of all details of employee payments, deductions and leaver information. The contents will be similar to the current annual P35, but this file will be submitted every pay period (weekly, monthly, fortnightly, etc.).
The update will also allow employers to submit a new employee’s information before they commence employment with them. PAYE Modernisation / Real Time Reporting (RTR) will result in a reduction in the occurrence of year end over/underpayments of tax.
This new Revenue reporting system is anticipated to be fully integrated into payroll software. Fortunately, it is envisaged that the workload will not increase as a result of PAYE Modernisation.
Employees –
An online statement will be sent before the start of the new tax year which will detail the employee’s tax credits and standard cut-off point (SRCOP). This will be based on estimated income and details available to Revenue.
Employees will be encouraged to make any adjustments to this online statement, including any claims for additional entitlements. This differs from the current system where an employee is required to wait until the end of the tax year to apply for any refund as a result of overpayment of taxes or to find out if there are amounts due to Revenue as a result of underpayment of taxes.
P60s will be abolished, employees will instead have access to their pay and tax record online, this will be updated on an ongoing basis throughout the year as they are paid. This will enable Revenue to carry out periodic reviews to identify if employees are utilising their tax credits and SRCOP to the maximum effect (e.g. where an employee has 2 employments) and, where applicable, employees will be prompted to reallocate tax credits and SRCOP.
Related articles
- PAYE Modernisation - Are You Ready For January 2019?
- Revenue moves to PAYE Modernisation
- Auto Enrolment Planned for Ireland by 2021
- 2018 and Beyond
Nov 2017
6
PAYE Modernisation - Are You Ready For January 2019?
Revenue has released an information leaflet titled “PAYE Modernisation – Are You Ready?”. This kick-starts their awareness campaign for businesses to get ready for payroll changes called PAYE Modernisation or Real Time Reporting (RTR). Revenue outlines the steps that all employers need to take in order to ensure that their current records and obligations are up-to-date and correct.
PAYE Modernisation will change how employers report payroll information for their employees to Revenue. A file will need to be submitted (electronically) to Revenue, containing all details of employee payments. The contents are similar to the annual P35, however, this file will be submitted every pay period (weekly, monthly, fortnightly, etc.).
If you are an employer who uses payroll software, then the work involved to comply with PAYE Modernisation will be minimal. However, for smaller employers who do not use payroll software, the process of complying with PAYE Modernisation will be time-consuming and stressful. Currently, these employers make one manual submission to Revenue through their annual P35. With PAYE Modernisation, these employers will be required to make an employer submission to Revenue each pay period in real time. The employer submission will contain details comparable to what currently appears on an employer’s P35 return.
With PAYE Modernisation in mind, Revenue has contacted nearly 400 employers regarding their P35L returns for 2016. These returns contained employees who were never previously registered as working with the employer. This communication reminds those employers of their obligation to comply with PAYE regulations and requests those employers to submit a P46 for the non linked employees currently in their employment, the commencement date should be input as 1st January 2017 for employees that commenced employment before the current tax year. This action will then result in a new P2C (tax credit certificate) being issued for these employees.
Related articles:
Jul 2017
3
Revenue moves to PAYE Modernisation / Real Time Reporting
Following the announcement in last October’s Budget 2016, Revenue entered a consultation on the modernisation of the PAYE system.
Revenue’s proposal is that employers will report pay, tax and other deductions at the same time as they process and finalise their payroll. Similar to Real Time Information (RTI) in the UK, details of employees starting or leaving employment will be reported on the date of commencement/cessation and will eliminate the filing of P30, P35 and P45 forms.
Although, many businesses across Ireland have broadly welcomed the forthcoming introduction, some smaller businesses have expressed concern about the additional administrative burden due to poor internet access and the additional hours it may involve. Many businesses will be a risk as they have not invested in payroll software where they calculate their payroll manually.
Last April Revenue disclosed that it received 77 submissions to the consultation which represented a broad range of interests, both from large and small companies. For larger employers, the transition will be relatively straightforward, but Revenue is looking at alternatives to accommodate smaller employers, in particular, those who may still process their payroll manually.
IBEC state that while most of its members welcome the change, it is important that the system is flexible. A professional services group also warned that the work involved for employers to prepare for the implementation of PAYE modernisation / Real Time Reporting (RTR) should not be underestimated.
Thesaurus Software / BrightPay Ireland already has the experience and expertise in developing the same real time features and functions for our UK customers. We are already collaborating with Revenue to ensure the transition for our customers to Real Time Reporting (RTR) / PAYE modernisation is smooth, user-friendly and ready for implementation in January 2019.
For further information, Revenue have provided the following link:
http://www.revenue.ie/en/corporate/consultations-and-submissions/paye-modernisation/index.aspx
Interested in finding out more about PAYE Modernisation? Register now for our free PAYE Modernisation webinar. Click here to find out more.
Sep 2016
11
Paternity Leave Benefits – Update from Revenue
In August Revenue issued guidance for the new Paternity Benefit which was introduced in respect of Births and Adoptions on or after 1st September, 2016.
Paternity Benefit will be liable for income tax but not PRSI or USC. All employees who pay their tax through the PAYE system will automatically have their annual tax credits and rate bands reduced by the amount of benefit paid. Employers and pension providers will be notified of the adjusted tax credits and cut-off points on their Employer Tax Credit certificates.
Paternity Benefit should not be included on Forms P45, P60 and P35L.
Paternity Benefit is payable at the minimum rate of €230 per week for two weeks and must be taken in one block. Although some employers can pay employees while on Paternity Leave, however this is not a requirement. In such cases, the Paternity Benefit should be paid to the employer. If you have any queries on the appropriate payments, please direct them to the Department of Social Protection.
Sep 2014
12
Irish Employers - Lump Sum Payments that qualify for tax relief
The following redundancy and retirement payments, although not completely tax exempt; do qualify for some relief.
• Wages / Salary in lieu of notice on retirement or redundancy.
• Payment paid by your employer which is additional to the statutory redundancy payment. This additional payment is known as an ex-gratia payment or golden handshake and is up to certain statutory limits.
If your employer provides all or part of the lump sum in another form e.g. car, holiday, etc. the cash value of this item is taxable.
If this lump sum is on the termination of a contract this payment is chargeable to tax in the normal way.
If an employer pays for the cost of retraining an employee as part of a redundancy package, up to €5000 of the retraining cost is exempt from tax. The following conditions apply:
• The employee has more than 2 years continuous full time service
• The retraining is completed within 6 months of the redundancy
• The retraining is designed to improve skills/knowledge to assist in obtaining employment or setting up a business
• The employee cannot take cash instead and must avail of the retraining.
The tax exemption will not apply to dependents, spouse or civil partner of the employer.
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.
