Jul 2013
25
Holiday Entitlement for Employees with Flexible Contracts
With the onset of the recession more employees are working part-time or on “zero hour” contracts.
This means that the employee is available to work when needed but does not have a specified number of hours guaranteed. The employee could have no work in one particular pay period but work full time the next pay period. These contracts are more usual in the hospitality and retail industries.
Employers often find it difficult to calculate holiday entitlements in these circumstances.
Thesaurus Software makes this task simple by incorporating a holiday calculator within the payroll itself which looks at the hours worked and calculates the holiday entitlement based on that. It also includes formation from the Organisation of Working Time Act and also other helpful guides dealing with different aspects of employment.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
23
BrightPay supporting Barretstown
Congratulations to our BrightPay team members, Denise and Caroline, on their completion of the PowerFit spinathon in aid of Barretstown.
Thesaurus Software is a strong advocate of Barretstown who offer an invaluable service to society rebuilding the lives of seriously ill children and their families.
We at Thesaurus Software recognise the hard work of all charities and the current difficulties they face in meeting their challenges, to that end we offer all registered charities a free standard payroll software license and customer support on an ongoing basis. Click here for our terms and conditions.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
22
Government is offering Vouchers for €2,500
Is your Business online? If not, the Government is offering Vouchers for €2,500 to assist you! If yes, have you an ecommerce site – is it working for you?
The evidence is that if your company engages in online trading - your business is more likely to grow twice as fast.
The first phase of the state's National Digital Strategy will provide vouchers worth €2,500 to small firms who want to build their presence on the web. The funds will go to 2,000 businesses around the country to help them "prioritize digital, get the resources, training and expertise needed to develop an online trading presence". The Vouchers will be available for redemption in 2014. Watch this space - Thesaurus Software will alert all our customers as to commencement of the application process.
There will be no geographic restrictions on the vouchers, so businesses from across Ireland will be able to apply. Quotas for different areas will not apply.
Some six out of 10 Irish adults now shop online and 61% of consumers plan to increase their online expenditure. However, 73% of this is leaking out of this economy to international vendors. There’s no point in trying to stop that, but what we can do is compete and sell our wares and services online.
The plan also aims to reduce the number of people who don't use the internet – so called non-liners – by 50pc to 288,000 by the end of 2016.
Launching the plan, communications minister Pat Rabbitte said the State needed to focus more on the practical aspects of doing business online. "Governments tend to focus on the engineering side of the internet – building out the hardware. We need to get more small businesses set up for Ecommerce."
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
11
JobsPlus - New Irish Employer Incentive
JobsPlus is a new employer incentive which encourages employers to employ jobseekers on the live register. The scheme replaces the Revenue Job Assist and Employer Job (PRSI) Exemption Scheme from the 1st July 2013; the scheme will be operated by the Department of Social Protection.
There are two levels of payment:
- A payment of €7,500 over 2 years to the employer for each employee recruited who has been unemployed for between 12-24 months
- A payment of €10,000 over 2 years to the employer for each employee recruited who has been unemployed for more than 24 months
Payment will be made monthly in arrears by Electronic Fund Transfer over a 24 month period. Income received from the initiative will not be considered as revenue/income for income or corporation tax purposes.
To qualify for JobsPlus, employers must meet the following conditions:
- The employer must be registered for PAYE with the Revenue Commissioners
- The employer must be tax compliant, employers will be requested to give an officer of the Department of Social Protection permission to check their status with the Revenue Commissioners and to obtain a Tax Clearance Certificate using Revenue’s on line service at the time of application
- The employer must offer a full time position for a minimum of 30 hours per week and the employee must work at least 4 days in any 7 day period
- The employer must give details of the company when applying e.g. size of the workforce, bank details etc
To apply for the scheme employers log on to www.jobsplus.ie and complete the online application form, if approved the Department of Social Protection will revert to the employer via email.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
7
Classification of working directors
Up to now the classification for PRSI purposes, of directors of limited companies who work in that company (“proprietary directors”), has been determined on a case by case basis. This determination takes into consideration the Code of Practice for Determining the Employment or Self-employment Status of Individuals. (http://www.welfare.ie/en/Pages/Code-of-Practice-for-determining-Employment-or-Self-Employme.aspx )
Under the provisions of Section 16 of the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 proprietary directors who own or control 50% or more of the shareholding of the company, either directly or indirectly, cannot be an employee of that company. This provision comes into effect from 1 July 2013.
In these circumstances the individual is classified as self-employed and is liable to pay PRSI at Class S.
The classification of proprietary directors who own or control less than 50% of the shareholding of the company will continue to be determined on a case by case basis, taking into consideration the Code of Practice for Determining the Employment or Self-employment Status of Individuals.
The new provision will apply to proprietary directors both prospectively and retrospectively.
Where these provisions are to be applied retrospectively, a person has the option of electing to have the decision, in relation to his or her employment prior to the enactment of the legislation, made under the Code of Practice for Determining the Employment or Self-employment Status of Individuals. Any decision will only apply to the period of employment prior to the enactment of the legislation.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
4
Maternity benefit tax could cost women up to €3,000
Mothers and pregnant women face losses of up to nearly €3,000 a year as part of the tax on maternity benefit which came into force on July 1st.
Women’s representatives said the measure was a mean-spirited move by the Government.
The tax will contribute €15m to the exchequer in 2013, and €40m per full year from then on.
But the National Women’s Council yesterday expressed concern that many women were not aware when the reductions in benefit would take affect.
Its policy advisor Ann Irwin explained: “It’s a very mean-spirited move in a lot of ways. Even the commission on taxation has said that maternity benefit should remain outside the tax net. It’s there for mothers to nurture children when outside the workforce.
“The benefit payments are an important acknowledgment for mothers of the cost of having a baby in Ireland.”
Opposition parties have branded the new tax measure as “anti-family” and it could see working mothers pay up to €2,700. Mothers will pay different rates depending on their top-up payments from their employer as well as assessments on their means.
The tax could see benefits reduced by up to €103 a week, the council said.
The Department of Social Protection paid out €309m in maternity benefit payments in 2011.
Mothers get between €217.80 and €260 a week in payments for 26 weeks.
The council said women who got employer top-up payments would be worst affected but that it remained unknown how many would be affected by the levy.
But ministers have insisted women overall will not be worse off. Some had been receiving high payments while on maternity leave, ministers have also said.
However, Ms Irwin said many women remained in the dark about the tax. “The first they may know about it while on leave is when their next pay package comes in.”
Bright Contracts – Employment Contracts and Handbooks
BrightPay – Payroll Software
Jun 2013
4
Video Help
Click on any of the following links for video help on that subject:
Backing up
Bank transfer
Changing surname
Doing your P35
Dropbox
Emailing payslips
Entering Revenue details
Holidays
Illness benefit
Importing P2C from ROS
LPT
Mid year setup
P30 ROS
P45 holiday pay, general
P45(3) and P46
Pensions
Reversing older updates
ROS P45
SEPA
Upgrading software
USC cut offs
Jun 2013
1
Taxation of Maternity Benefit, Adoptive Benefit & Health & Safety Benefit
From 1st July 2013 Maternity Benefit, Adoptive Benefit & Health & Safety Benefit payable by the Department of Social Protection will be taxable in full. These payments will be taxable but will not be subject to USC or PRSI.
The Revenue Commissioners have confirmed that employees in receipt of Maternity Benefit, Adoptive Benefit or Health & Safety Benefit will have their tax credit and standard rate cut-off point reduced to reflect the benefit they have received. As the benefit will be taxed by Revenue and not at source the recipients will continue to receive the same payment from the Department of Social Protection.
Employers will be advised of the adjusted tax credits and standard rate cut-off points on the tax credit certificates (P2C’s). As the benefit will be taxed by reducing the employee’s tax credits and standard rate cut-off point, employers are NOT to include figures for the benefit on Revenue forms i.e. P45, P60 or P35L.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll Software
Apr 2013
24
Parental Leave
The EU (Parental Leave) Regulations 2013 (S.I. 81 of 2013) came into operation on 8 March 2013, amending the Parental Leave Acts 1998 to 2006. The Regulations made the following key changes to parental leave rights in Ireland:
Parental Leave entitlement increased to 18 weeks
The Parental Leave Acts provide parents, adoptive parents and persons in loco parentis, who have the required continuous service with their employer with the right to take unpaid leave to care for their children. The leave may be taken as a continuous block, or, if the employer agrees, it may taken over a period of time. The new Regulations increase the parental leave entitlement from 14 to 18 working weeks.
Leave for child suffering from long-term illness
Normally, parental leave must be taken before the child reaches 8 years of age, but leave can be taken to care for older children in certain limited circumstances, such as when a child has a disability. In such cases parental leave can be taken up until the child reaches 16 years, or the disability ceases, whichever first occurs. The new Regulations now extend the scope of this provision to allow for leave to be taken in respect of a child with a long-term illness until that child reaches 16 years, or the illness ceases, whichever first occurs.
Transfer of parental leave between parents limited to 14 weeks
Each parent has a separate entitlement to parental leave in respect of each child and there is no general right to transfer parental leave from one parent to another. However, in cases where both parents are employed by the same employer, either parent is entitled, subject to the consent of the employer concerned, to transfer all or part of their parental leave to the other parent. However, the new Regulations specify that the right to transfer parental leave is limited to 14 of the 18 working weeks.
Right to request change to working hours or patterns
The new Regulations also provide a statutory entitlement for employees returning from parental leave to request a change in their working hours or patterns for a set period of time. The request must be made not later than 6 weeks before the commencement of the proposed set period. The employer must consider, but is not required to grant, the request. When considering the request, the employer must have regard to the needs of the employer and the employee. The employer must then, within 4 weeks of receipt of the request, either (a) inform the employee in writing that the request has been refused, or (b) if the request is accepted, arrange for the employer and employee to sign an agreement confirming the proposed changes with the date of commencement, and duration of the changed working arrangements set out.
Other Important Aspects
Other noteworthy factors in addition to those above and those set out in the updated handbook section are as follows:
Social insurance contributions
- The Minister for Social Protection has previously introduced Regulations to ensure preservation of social insurance (PRSI) records for employees who take parental leave. The employer must write to the Records Update Section of Department of Social Protection, detailing the weeks not worked, so that the employee can get credited PRSI contributions for this time. Information about credited contributions and parental leave is contained on the Department’s website www.welfare.ie
Annual leave and public holidays
- While on parental leave, an employee must be regarded for employment rights purposes as still working. This means that annual leave is accrued while on parental leave. If annual holidays fall due during parental leave, they may be taken at a later time. A public holiday that falls while an employee is on parental leave and on a day which they would normally be working is added to their entitlement.
Amount of parental leave
- Where an employee has more than one child, parental leave is limited to 18 weeks in a 12-month period. This can be longer if the company agrees and parents of twins or triplets can take more than 18 weeks of parental leave in a year.
- The 18 weeks per child may be taken in one continuous period or in 2 separate blocks of a minimum of 6 weeks. There must be a gap of at least 10 weeks between the 2 periods of parental leave per child. However, if the employer agrees the leave can be separated into periods of days or even hours.
Other elements
- Generally an employee must have been working for the employer for a year before being entitled to parental leave. However if a child is very near the age threshold and an employee has been working for an employer for more than three months but less than one year they are entitled to pro-rata parental leave i.e. one week's leave for every month of employment completed.
- If an employee changes job and has already used part of their parental leave allowance they can use the remainder after one year's employment with the new employer provided the child is still under the qualifying age.
- Apart from a refusal on the grounds on non-entitlement, an employer may also postpone the leave for up to 6 months. This must be done before the confirmation document is signed. If the confirmation document is already signed, the leave cannot be postponed without further written agreement. Grounds for such a postponement may include lack of cover or the fact that other employees are already on parental leave. Normally, only one postponement is allowed, but it may be postponed twice if the reason is seasonal variations in the volume of work.
- Parental leave is to be used only to take care of the child concerned. If the parental leave is taken and used for another purpose The company is entitled to cancel the leave.
- Employers must keep records of all parental leave taken by their employees. These records must include the period of employment of each employee and the dates and times of the leave taken. Employers must keep these records for 8 years. If an employer fails to keep records they may be liable to a fine of up to €2000.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Apr 2013
13
What you as an employer need to know about LPT (Local Property Tax)
An employee may opt with Revenue for their LPT liability to be collected by deduction from their salary/wages.
Revenue will communicate to you how much you should deduct from employees in the P2C file (details of tax credits and cut off points) which will be sent to your ROS inbox in June 2013. The LPT field is a new field within the P2C file and Thesaurus Payroll will detect it automatically once imported into the software. Paper tax credit certificates will also contain this new LPT field and Thesaurus Payroll will have a new field for inputting the LPT amount manually.
LPT deductions commence for pay dates from 1st July 2013 and, in accordance with Revenue guidelines, Thesaurus Payroll will deduct the LPT amount evenly over the remainder of the 2013 year. Where, in any pay period, there is insufficient pay to enable deduction of LPT, the balance remaining will be spread evenly over the remaining pay periods.
The LPT deduction, the amount deducted to date and the balance of LPT still to be deducted will be shown on payslips.
The amount you pay to the Collector General by way of a P30 (monthly or quarterly) will include the LPT amount that you have collected. P45s and P60s will also include a new LPT field.
We will be releasing an upgrade in June to handle all of the above.
As with all other statutory deductions, you will be obliged to deduct LPT in accordance with the P2C instruction from Revenue. If an employee has an issue, they must contact Revenue directly. You, as employer, have no discretion in the matter! Revenue can pursue you as employer for any amounts you fail to deduct, charge interest on late payment and fine you for non-compliance.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll Software
