Sep 2017
18
Have you employees with 20 plus years of service? If so why not say thank you with a gift.
Revenue Commissioners offer tax relief on long service awards, which is considered to be at least 20 years of service. Tax relief on long service awards can be in addition to the small benefit exemption.
Employers can reward employees for long service with tangible articles with a value up to a maximum of €50 per year of service, starting at 20 years of service and every 5 years thereafter.
The award must be a tangible article e.g. a gold watch, it does not apply to awards made in cash.
Tax will not be charged provided:
• The cost to the employer does not exceed €50 per year of service
• The award is made in respect of service not less than 20 years
• No similar award has been made to the recipient within the previous 5 years
Where any of the conditions are not met PAYE, PRSI & USC must be applied on the full amount.
Details can be found on Revenue's website
New PAYE Modernisation legislation to be in place by Jan 2019
Sep 2017
11
Thesaurus Connect is our latest cloud add-on that works alongside Thesaurus Payroll Manager. Automatically store payroll information in the cloud and enable online access anywhere, anytime for payroll bureaus, employers and employees. You’ll be up and running in seconds.
Secure online Backup
Bureau / Client Dashboard
Employer Dashboard
Employee Self Service Portal
HR & Annual Leave Management
Book a demo today to see how Thesaurus Connect can meet your payroll processing.
Aug 2017
30
In October 2016, the Minister for Finance announced that the current Pay As You Earn (PAYE) system would be revamped and modernised. This is known as PAYE Modernisation. This new system will enable Revenue to ensure that employees are receiving their correct tax credits and cut-off points throughout the year in real time. This compares with the current PAYE reporting which is done through P35s on a yearly basis.
Find out more / Register for webinar
Thesaurus Connect is a cloud add-on that works alongside Thesaurus Payroll Manager. Payroll information is stored in the cloud and can be accessed online by bureaus, employers and employees on any device. Thesaurus Connect offers additional innovative payroll and HR features that streamline annual leave management and payroll processing.
PAYE Modernisation is probably the biggest overhaul of the PAYE system since PAYE itself was introduced back in 1960. It will have wide ranging effects on all employers.
Register here: 3rd October (bureaus) / 4th October (bureaus) / 24th October (employers)
80% of unfair dismissal cases are won by the employee, not because the reason for dismissal was unfair but because the employer did not follow fair procedures. In this webinar we discuss the dangers of dismissing an employee, what rights you have as an employer and the relevant steps you need to take to protect your business against an unfair dismissal claim.
Data protection and how personal data is managed is changing forever. On 25 May 2018 the new General Data Protection Regulation (GDPR) will come into force. The GDPR is a European privacy regulation replacing all existing data protection regulations.
Aug 2017
17
In September 2016, fathers of children born in Ireland became eligible for the first time to take up to two weeks’ paternity leave and to receive Paternity Benefit from the Department of Social Protection. Statistics collated from the first few months of the scheme show, however, that just one in four fathers eligible for the scheme chose to avail of it. This is in stark contrast to the expectation that 60% of eligible fathers would avail of the scheme when it was first announced.
Just over 5,000 paternity benefit applications were awarded during the first three months of the scheme going live, with County Longford, Kerry, Roscommon, and Clare having the fewest applicants. A larger uptake, however, was seen in County Dublin, Cork and Kilkenny.
A further 7,500 paternity benefit claims were subsequently awarded in the first four months of 2017. Under the new scheme, eligible fathers are entitled to two weeks of paternity leave. The two-week leave can be taken at any point within 28 weeks of the birth or adoption of a child, but the two weeks must be taken together.
A social welfare benefit of €235 per week is paid for the two weeks. It is at an employer’s discretion if they wish to top up this payment to the full weekly wage normally earned by the employee. Despite the low uptake so far, it is hoped that the number of applicants will increase as the scheme enters its second year in September.
Current statistics also don’t reflect fathers who may be delaying their paternity leave, for example, fathers whose child was born on February 28 this year can take it at any time up to September 1, 2017.
Guidance on how employers should treat Paternity Benefit and when it should be entered in Thesaurus Payroll Manager can be found here: https://www.thesaurus.ie/docs/2017/paternity-benefit/taxation-of-paternity-benefit/
Related article: Equality for working Dads with new Paternity Leave
Jul 2017
24
Data protection and how personal data is managed is changing forever. On 25 May 2018 the new General Data Protection Regulation (GDPR) will come into force. The GDPR is a European privacy regulation replacing all existing data protection regulations.
The current data protection legislation in Ireland dates back to 1998 and 2003, predating current levels of internet usage and cloud technology, making it unsuitable for today’s digital economy.
The GDPR will apply to any personal data of EU cititzens, regardless of whether it is stored within or outside the EU. Most, if not all companies, process a level of personal data, whether it is customer details or employee details, therefore businesses need to be aware and plan for the new legislation.
What is Personal Data
The GDPR substantially expands the definition of personal data. Under GDPR, personal data is any information related to a person, for example a name, a photo, an email address, bank details, their personnel file, or a computer IP address.
Key Changes
Some of the key changes included as part of the GDPR include:
Consent must be clear, distinguishable from other matters and provided in an easily accessible form, using clear and plain language. It must be as easy to withdraw consent as it is to give it.
Breach Notifications: where a breach occurs, the Data Protection Commission and affected data subjects must be notified within 72 hours of the breach coming to light.
Data Subjects will have additional rights, including:
High Penalties
Ignoring the new legislation is ill advised as there are tough new fines for non-compliance. Companies or organisations found to be in breach of the legislation will face fines of up to 4% of annual global revenue or 20 million Euros, whichever is greater. The Data Protection Commissioner is the authority responsible for enforcing data protection obligations in Ireland. In preparation for the legislation, the Commission is doubling it’s workforce, leaving no doubt that they will be taking their new responsibilities extremely seriously.
To Do
If you have yet to start planning for GDPR click here for guidance on how to prepare.
Jul 2017
19
The Low Pay Commission has recommended that the National Minimum Wage be increased by 30c per hour, from €9.25 per hour to €9.55 per hour from 1st January 2018. An employee working a 40 hour week will see their gross wage increase by €12.00 a week. Since 2011 this is the fourth increase in the national minimum wage.
In the report the Low Pay Commission has published it has explained with necessary data of its recommendation of the increase, including international competitive and risks to the economy research. In The Low Pay Commission’s findings submissions from interested parties and consultations with employees and employers in relevant economic sectors had taken place.
This increase will affect around 120,000 employees, increasing their national minimum wage by 3%. 10.1% of employees were earning the National Minimum Wage or less last year according to figures published from the Central Statistics Office last April.
While Taoiseach Leo Vardakar said ‘The Government welcomes the recommendation from the Low Pay Commission to increase the National Minimum Wage by 30c to €9.55 per hour’, the Programme for Government commitment for a minimum wage of €10.50 per hour is still a few steps off.
Jul 2017
6
The 2017 Living Wage has been set at €11.70 per hour, up from €11.50 last year. The new figure represents an increase of 20 cent per hour on the previous rate. The recommended living wage rate is now nearly a third higher than the legally required minimum wage, which is set at €9.25 an hour.
The 20 cent increase in the Living Wage was arrived at upon consideration of a number of changes in the cost of living and the taxation regime in the last year. The Living Wage for the Republic of Ireland was established in 2014, and is updated in July of each year. It is part of a growing international trend to establish an evidence-based hourly income that a full-time worker needs so that they can experience a socially acceptable minimum standard of living.
Jul 2017
6
Revenue officials regularly carry out prearranged and/or unannounced visits to business premises across the country inspecting various aspects of taxation compliance. Perhaps a lesser known fact, however, is that on request during any such visit, employers have a statutory obligation to produce a Register of Employees.
What is a Register of Employees
A Register of Employees must contain the following information:
The register will not only contain information for full-time staff but also must include temporary, part-time or casual employees.
The obligation to maintain a Register of Employees is separate to an employer's obligation to register with Revenue for PAYE purposes.
Storing the Register
The Register of Employees must be kept either at the normal place of employment of each employee or at the main place of business of the employer, for example, a business’s HQ. The register may be in paper or electronic format.
Employers who outsource their payroll and normally retain very little information on site must be aware that the onus remains on them to keep and maintain the Register or Employees at the normal place of business.
The Penalty for Non-Compliance
Failure by a company to keep and maintain a Register of Employees carries a penalty of €4,000.
Jul 2017
3
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.
May 2017
30
From 1st January 2019, whenever Irish employers pay their employees, a file must be submitted (electronically) to Revenue containing details of these payments. Unlike the annual P35, this file must be submitted each pay period. Find out more about what direct effects this will have on employers.
Ransomware is when your files are held for ransom. It is a type of malware that essentially takes over a computer and prevents users from accessing their data until such time as a ransom is paid. Learn more about keeping your payroll data safe.
The technology that Thesaurus Payroll utilises will be updated and improved from January 2018. As a result of this improvement, Payroll Manager will no longer be able to run on Windows XP operating systems. This technological enhancement brings many performance, reliability and security improvements.
Our sister product, Bright Contracts enables you to create tailored, professional contracts of employment and staff handbooks. What was once a very expensive and time-consuming process can now be done on your PC.
Request a demo / Find out more
BrightPay is a payroll product that provides superior features and functionality for bureaus. You can easily import your employer information into BrightPay from Thesaurus Software. What’s more it’s only €299 for a bureau licence.
Thesaurus Cloud is an optional cloud and HR add-on which offers an online self service portal for employees, secure cloud backups, annual leave management and more.
When conducting an interview you may veer off your pre-set questions when building rapport with a candidate and to do a little digging in some areas, however asking the wrong question could leave you at risk of a hefty discrimination claim.
