Apr 2015
26
FRIDAY 1ST MAY 2015 – SEPA PAYMENT PROCESSING RESTRICTIONS
The Banking & Payments Federation Ireland (BPFI) has issued a customer payments notice in light of Friday 1st May 2015 being a European Bank Holiday.
Friday 1st May 2015 is a European Bank Holiday; the Euro payments clearing and settlement system will be closed. Although Irish banks are open for business on the 1st May 2015 it is not possible to exchange payments with other banks. In addition Monday 4th May 2015 is a bank holiday in Ireland. SEPA Credit Transfer Bulk Files submitted with a debit date of Thursday 30th April 2015 or Friday 1st May 2015 may not be with the beneficiary bank until Tuesday 5th May 2015.
Employers due to pay wages on Friday 1st May 2015 may wish to submit their payments early to ensure beneficiary accounts are updated (credited) on Thursday 30th April 2015.
For further details on Euro payments processing over that weekend please check with your own bank.
Dec 2014
17
Week 53 - Irish Payroll
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.
Nov 2014
25
Irish Employer’s Responsibilities - Payment of Wages Act
The Payment of Wages Act 1991 gives all employees the right to a payslip which shows the gross wages and the details of all deductions. A payslip is essentially a statement in writing from the employer to the employee that outlines the total pay before tax and the details of any deductions from pay. Payslips can be provided in electronic/hard copy format.
Deductions from employees’ pay are allowed when:
• It is required by law i.e. Income Tax, Universal Social Charge (USC) & PRSI
• Provided for in the contract of employment e.g. pension contributions
• Employee has given written consent e.g. trade union subscriptions
• They are to recover an overpayment of wages or expenses
• They are required by a court order e.g. attachment of earnings order
• They arise due to employee being on strike
Where a loss is suffered e.g. employee breakages, till shortages deduction is only allowed where:
• It is allowed for in the employee’s contract of employment
• It is fair and reasonable
• Employee has received written notice
• The amount of the deduction does not exceed the loss or the cost of the service
• The deduction takes place within 6 months of the loss/cost occurring
Failure to pay all or part of the wages due to an employee is considered to be an unlawful deduction and a complaint can be made under the Payment of Wages Act 1991.
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.
Nov 2014
18
Maternity Benefit
Maternity benefit is a non taxable income as it is taxed through your standard rate cut off point (SRCOP) and your tax credits (TC’s). There are a couple scenarios that may arise when you have an employee going out on maternity leave.
• Firstly Revenue should always be informed when an employee is going out on maternity leave as a new P2C Tax Credit Certificate will need to be issued for this employee
• If the employee is receiving the standard €230 a week into their own bank and you don’t top up their wages all you will need to do is zeorise their weekly pay and put them on a Week/Month One Basis.
• If the company receives the benefit but doesn’t top up their pay you will have to zeorise their weekly pay and go in to the additions tab and under non-taxable additions add the description maternity benefit and input the €230 in this section.
• If it is company policy to top up the wages and the company receives the maternity benefit you will need to reduced the weekly pay by the €230 and go in to the additions tab and under non-taxable additions add the description maternity benefit and input the €230 in this section.
• If the company doesn’t receive the maternity benefit and tops up their wage all you will have to do in this case is reduce the weekly pay by the €230.
Maternity Benefit is taxed through the SRCOP and TC’s a new tax credit certificate will be issued for this employee when they go out on maternity leave and it is normally calculated as follows;
€230 X 26weeks = €5,980 the SRCOP is then reduced by this amount i.e. Average annual Cut Off Point; 32,800 – 5,980 = 26,820 this is now the new annual SRCOP
€5,980 X 20% = €1,196 and the Annual TC’s is then reduced by this amount i.e. Average annual tax credit; 3,300 – 1,196 = 2,104 this is now the new annual TC’s
And the new cert is then issued on a Week/Month One basis for the remainder of the year.
Nov 2014
5
Local Property Tax 2015 - Ireland
The third year of LPT is fast approaching!!! Revenue will be writing to the majority of homeowners shortly, the letters will give homeowners the opportunity to decide how and when they would like to pay their LPT. The letter will include the Property ID and PIN and will also confirm the amount due for 2015. If you wish to avail of a phased payment option such as Direct Debit/Deduction at Source you should confirm your payment method by the 25th November 2014 to allow sufficient time for the payment method to be in place for the beginning of the year.
Revenue will not be writing to homeowners already paying LPT through deduction at source or by direct debit instead their payment method will continue in 2015.
A number of Local Authorities have reduced the rate of LPT for 2015; Revenue will automatically make those deductions. Homeowners can confirm the amount of LPT due for 2015 on their property by accessing their LPT record online using their PPS Number, Property ID and PIN.
Key Dates for 2015:
• 7th January 2015 – Deadline for paying in full by cash, cheque, postal order, credit card or debit card
• January 2015 – Phased payments by Deduction at Source and regular cash payments through a Payment Service Provider to commence in January
• 15th January 2015 – Monthly Direct Debit payments commence and will continue on the 15th of each month thereafter
• 21st March 2015 – Single Debit Authority payment deducted
If you are the liable person for the residential property on 1st November 2014 you have to pay LPT for 2015 even if it is sold before the end of 2014.
Full details can be found on Revenue’s website www.revenue.ie
Oct 2014
18
Illness Benefit
Illness benefit is liable to PAYE but not USC and PRSI. A lot of confusion arises on the employers’ role of the taxation of the benefit. If an employee is out sick for more than 6 days they can claim illness benefit from the Department of Social Protection (DSP). There are a couple of scenarios that will arise when this happens:
• You will receive a letter from the DSP stating that they are receiving a cheque for Illness Benefit and advising you on the amount liable to PAYE
• You must reduce the pay by the amount stated by the DSP in the weekly/monthly basic and input the Illness Benefit in the correct section on the payroll
• You haven’t had any correspondence with the employee, in this case you must assume they are in receipt of the benefit and tax them. The daily rate is €31.33 and the weekly 6 day benefit is €188.
• If the employee has opted for the employer to receive the cheque it still needs to be taxed in the Illness Benefit section on the payroll.
• If it is your company's policy to pay an employee while out sick you must reduce the weekly/monthly pay by the amount of Illness Benefit they are receiving.
• If is not your companies policy to pay an employee while out sick their pay must then be zeroised.
• If the employee returns and you’ve inputted the benefit into the system and they weren’t receiving the benefit , simply go to the illness benefit section and put a “–“ figure of the amount you deducted. This will refund any tax deducted, i.e. -€188
Sep 2014
22
Irish Employers - show your staff your appreciation!
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.
20 years of service – value up to €1,000
25 years of service – value up to €1,250
30 years of service – value up to €1,500
35 years of service – value up to €1,750
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.
This concession applies to directors as well as employees.
Full details can be found on Revenue’s website www.revenue.ie
Sep 2014
2
All Good Things Must Come to an End
I guess the old saying that "all good things must come to an end" is true. We learned this first hand in the Thesaurus Software office last week when we had to say goodbye to one of our most valued colleagues, Gerri McGinley.
Gerri began working for Thesaurus Software almost 14 years ago when she began her role as a customer support agent. Ever since, Gerri has been a dedicated, fun-loving, team-player and has been a great asset to the customer support team. We will long remember the hard work and happy moments we have shared.
The final farewell took place on Saturday night when the Thesaurus Software team gathered for Gerri’s retirement dinner. Not only was Gerri a colleague, but a friend to everyone here at the office. Although it is sad to see her leave, we wish Gerri every success in the future.
Jul 2014
31
Need assistance with processing Illness Benefit?
Processing Illness Benefit can be an area of confusion for many employers due to the number of scenarios which can apply:
1. The employer does not pay the employee while they are out sick
2. The employer pays the employee while they are out sick, and the employee retains the Illness Benefit payment from DSP
3. The employer pays the employee while they are out sick, and the employer receives the Illness Benefit payment from DSP
For video help on how to account for illness benefit within Payroll Manager, see below.
Alternatively, telephone support is available at 01 8352074 as well as associated online documentation at http://www.thesaurus.ie/docs/2014/illness-benefit/
May 2014
1
Eircodes - the new postcodes for Ireland
Every address in Ireland will receive its unique Eircode in Spring 2015.
"The Eircodes will help the public, businesses and public bodies to locate every individual address in the State. Eircodes will bring many benefits to the daily lives of people, householders and businesses. Currently, around 35% of addresses - mainly in rural areas - do not have a unique name or number in their address. With Eircodes, delivery of services and goods will be much easier and quicker to these addresses." - www.eircode.ie
When people receive their Eircode next year, they will not need to change their address. They will just add the Eircode whenever it is needed or useful, so it will be very easy to start using it straight away.
Each Eircode has seven-characters that are unique to each mailing address. The seven characters are divided into two parts – a Routing Key and a Unique Identifier.
For businesses, some of the main things to consider are:
- Stationery, customer forms, websites and other places where your address is shown. Perhaps, plan print stocks of existing stationery items accordingly in the run up to Eircode Launch Date in Spring 2015.
- If you use a software package in your business, you will need to check with its supplier as to their plans for when and how they intend to incorporate Eircodes into the package.
- Some staff training may be needed especially if your systems or processes have changed somewhat to take advantage of Eircodes.
Our software offerings will all be updated to include an extra address field for eircodes and will incorporate all the required validation logic.
