Mar 2017
20
Almost all welfare benefits and state pensions are to be increased in 2017.
The maximum weekly Illness Benefit payment will increase by €5.00 from €188 to €193 per week from week commencing 13 March 2017.
Illness benefit is considered as income for tax purposes and thus needs to be taken into account for PAYE purposes by an employer. It remains exempt from USC & PRSI.
No payment is made for the first six days of illness and for any Sunday.
Thesaurus Payroll Manager will automatically apply the increased rate of €193 per week as soon as Week 12 is reached in the software, which users should be aware of. Further information on how to process illness benefit in Payroll Manager can be found here:
In addition, standard Maternity and Paternity payments will increase from €230 to €235 per week from 13 March 2017. These are both taxable sources of income but aren’t liable to USC or PRSI. Unlike illness benefit, however, an employer must not tax these benefits through payroll. Instead, the Revenue will tax Maternity and Paternity Benefit via the employee’s tax credit Certificate by reducing the employee's SRCOP and tax credit on receipt of information from the Department of Social Protection.
Feb 2017
14
Employers – the P35 deadline is fast approaching, the deadline is February 15th. (Or 46 days after the cessation of the business) Failure to make a P35 return by this date may result in a fine.
The deadline for an employer who pays and files electronically via Revenue Online Services (ROS) is extended to the 23rd of February.
To view our online documentation for preparing and submitting your P35 to ROS via Thesaurus Payroll Manager or BrightPay please click on the links below:
Thesaurus Payroll Manager:
https://www.thesaurus.ie/docs/2016/year-end/preparing-the-ros-p35-file/
https://www.thesaurus.ie/docs/2016/year-end/submitting-the-ros-p35/
BrightPay:
https://www.brightpay.ie/docs/2016/year-end/preparing-a-p35-ros-file/
https://www.brightpay.ie/docs/2016/year-end/submitting-a-p35-to-ros/
Oct 2016
12
No changes have been made to SRCOPs, tax credits or PRSI classes. Emergency basis will also remain unchanged.
USC (Universal Social Charge: No changes were made to the USC exemption threshold of €13,000. The 1%, 3% and 5.5% rates have been reduced by 0.5% to 0.5%, 2.5% and 5% respectively. There has been no change to the 8% rate of USC. In addition the Rate 2 COP has been increased from €18,668 to €18,772.
Medical card holders and individuals aged 70 years and over whose aggregate income does not exceed €60,000 will pay a maximum rate of 2.5%. The rate of 8% USC will continue to apply under the Emergency Basis.
Minimum Wage:
The National Minimum Wage will increase from €9.15 gross per working hour to €9.25 gross per working hour.
• Workers under age 18 will be entitled to €6.48 (currently €6.41) per working hour.
• Workers in the first year of employment over the age of 18 will be entitled to €7.40 (currently €7.32) per working hour. Workers in the second year of employment over the age of 18 will be entitled to €8.33 (currently €8.24) per working hour.
Minimum wage for trainees:
Employee aged over 18, in structured training during working hours:
• 1st one third of course will increase to €6.94 (currently €6.86),
• 2nd third of course will increase to €7.40 (currently €7.32) 3rd part of course €8.33 (currently €8.24).
PRD (Pension Related Deduction)
Budget 2017 did not make any change to the rates and thresholds for PRD.
However, the Financial Emergency Measures in the Public Interest Bill 2015 provides for the following changes:
• From 1st January 2017, the exemption threshold will increase from €26,083 to €28,750. 10% PRD will apply to earnings between €28,750 and €60,000, and 10.5% PRD will apply to any earnings in excess of €60,000.
PRSI
There were no changes to PRSI.
Dec 2015
1
Are you due a week 53?
Employers are only due a week 53 if there are 53 pay dates in the tax year. This situation will arise for employers in 2015 where their pay date falls on a Thursday. This is due to the fact that their first pay date fell on Thursday 1st January and their last pay date falls on Thursday 31st December. Employers with any other pay date will not be due a week 53. The same principle applies for employers who run fortnightly payroll (they are only due a week 54 if there are 27 pay periods in the tax year).
Week 53 PAYE Deductions
Employers should apply employee’s tax credits and standard rate cut off points on a week 1 basis. This means employees will get the benefit of more than one year’s tax credits and cut off points. Where an employee is on an emergency basis then an emergency basis should continue to apply.
Week 53 USC Deduction
Employers should apply USC standard cut offs on a week 1 basis. This is a change from last year where there were no additional thresholds granted. If an employee is on an emergency basis then an emergency basis should continue to apply for week 53. If an employee is exempt from USC they will continue to be exempt in week 53.
Week 53 PRSI Deduction
There is no change to the way PRSI is calculated.
Sep 2015
9
The announcement of Budget 2016 is just around the corner, on Tuesday the 13th Of October. So what can us PAYE workers expect?
Well, according to Mr Noonan we will have in the region of €1.5 billion extra to spend which will make for the first positive Irish Budget in 8 years.
The extra €1.5 billion is to be split equally between spending increases and tax cuts.
Changes to the PRSI system and reduction in the Universal Social Charge are apparently afoot. This should put at ease the minds of those low-paid workers who, with the increase in minimum wage would have actually ended up taking home less pay due to the increase in USC and PRSI.
There may also be cuts to USC and PRSI for those with higher earnings. The Government having previously promised to cut the 7% rate of USC to reduce the marginal tax rate on all those earning less than €70,000 a year to below 50%.
Vague promises on keeping the burden of taxation low and ending the unfair treatment of the small businesses and self-employed as well as improvements to Child Benefits are floating around but whether or not the Government keeps those promises remains to be seen.
Jul 2015
1
What is PAYE Anytime?
PAYE Anytime is the Revenues On-Line Service for employees. The service offers PAYE tax payers a secure way to manage their tax affairs online. PAYE Anytime is a self assessment system so employees are responsible for the information they provide.
You can register for PAYE Anytime by going to revenue.ie or by clicking on the below link.
https://www.ros.ie/selfservice/enterRegistrationDetails.faces
Fill in your personal details and a Revenue Pin will be posted to you.
What can you do on PAYE Anytime
• View your own tax records
• You can claim a wide range of tax credits
• You can use your profile to update your personal details; revenue can then use this information to suggest additional tax credits you may be entitled to
• You can claim a repayment for items such as health expenses (all receipts should be kept for a 6 year period)
• Request a P21 balancing statement (end of year review) for any of the last 4 years
• You can enter your bank account details so any refund due to you can be deposited directly to your bank account (revenue will not deduct money from your account if you have a tax liability)
• You can also declare additional income earned such as B.I.K’s and dividends
• If you are jointly accessed you can reallocate some of your tax credits or standard rate band between you and your spouse
• If you have multiple incomes you can reallocate your tax credits or standard rate band between your incomes
You don’t have to submit a paper claim when you submit transactions through PAYE Anytime. The service cannot be used by employees who submit a Form 11 or a Form 12 tax return to revenue on an annual basis.
PAYE Anytime now allows you to view your tax records from any computer or smart phone.
Dec 2014
17
Are you due a week 53?
Employers are only due a week 53 if there are 53 pay dates in the calendar year. This situation will arise for employers in 2014 where their pay date falls on a Wednesday. This is due to the fact that their first pay date fell on Wednesday 1st January and their last pay date falls on Wednesday 31st December. Employers with any other pay date will not be due a week 53. The same principle applies for employers who run fortnightly payroll (they are only due a week 27 if there are 27 pay periods in the calendar year).
Week 53 PAYE Deductions
Employers should apply employee’s tax credits and standard rate cut off points on a week 1 basis. This means employees will get the benefit of more than one year’s tax credits and cut off points. Where an employee is on an emergency basis then an emergency basis should continue to apply.
Week 53 USC Deduction
Where your employees operate on a cumulative basis continue to operate on a cumulative basis for week 53. For the purposes of USC there is no additional thresholds granted. If the employee has used all their USC cut offs in week 52 they will pay USC at the higher rate in week 53. Where your payroll operates on a week 1/month 1 basis employees will pay USC at the top rate. If an employee is on an emergency basis then an emergency basis should continue to apply for week 53. If an employee is exempt from USC they will continue to be exempt in week 53.
There is no change to the way PRSI is calculated.
Mar 2014
6
Revenue published a new Compliance Code for PAYE Taxpayers. This new Code describes Revenue’s PAYE compliance programme and the nature and scope of PAYE compliance interventions. This Code is effective from 18 November 2013 and all PAYE compliance interventions undertaken by Revenue will be made under the terms of this Code.
The Code can be downloaded here.
Sep 2013
6
A new report presented to Social Welfare Minister Joan Burton recommends the PRSI rate for self employed and proprietary directors should go up from current rate of 4% to 5.5% to fund extra social benefits for those who work for themselves.
The higher PRSI rate would be used to fund the paying of long-term illness and disability benefits for the self employed, which are not available to those who work for themselves at the moment.
However, the higher PRSI payment that the advisory group recommends for all the self-employed to pay for disability benefits, is set to be opposed by business group ISME The report also states that it would provide a safety net for those who want to start a business.
The cabinet has approved publication of the report, however it remains unclear if the recommendations will form part of next month's budget.
Jul 2013
31
Cycling has become one of the biggest growing trends in Ireland when it comes to commuting to and from work and also exercising.
It is a prime example of how well an incentive scheme can work, as the bike to work scheme has transformed cycling in Ireland.
As we all know, cycling is a great form of exercise and by cycling to work, you'll make sure you stay active and get good exercise every day without using up any more of your valuable time.
The bike to work initiative gives you the opportunity to sacrifice part of your salary in return for a bicycle and/or accessories. Under the scheme you don’t pay income tax, PRSI or Universal Social Charge of the price of the bicycle and/or accessories so you can save between 31% and 52% on the normal price (depending on your marginal tax rate).
Participating in the bike to work scheme couldn't be easier;
The employer simply pays for the bike and equipment up to the value of €1,000, and off you go. Your Employer will inform you how the payment will work exactly, whether they buy the bike outright or it operates under a "salary sacrifice" arrangement, but either way you save on tax! Simply set up an Allowable Deduction on Thesaurus Payroll Manager / Bright Pay to accommodate for the salary sacrifice.
The scheme is flexible in so far as your employer doesn't have to specifically notify the Revenue Commissioners that you're availing of the scheme and there are no Government forms to fill out. However, your employer does have to maintain the normal records such as invoices and payment details associated with buying the bike.
Introduced on 1st January 2009, this tax incentive scheme was designed to encourage more people to get on their bikes and cycle to work. And given the obvious rise of the number of cyclists on our roads, it’s easy to see that this incentive is definitely working.
You can find out more at http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/cycle-work.html#cycle1
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