Oct 2018
12
How to Master PAYE Modernisation
In January 2019 Revenue will begin to enforce a new Pay As You Earn system that will introduce real-time reporting of employee’s tax and other deductions directly to Revenue every time an employee is paid. This new system will be known as PAYE Modernisation.
Although the new system is expected to cause a lot of confusion, particularly for small and micro employers, PAYE Modernisation will seek to provide a much more accurate solution to the current PAYE system and ultimately benefit all employers and employees.
For over two decades, Thesaurus payroll software has supported businesses both large and small to pay hundreds of thousands of employees every month. At Thesaurus and BrightPay we are working directly with Revenue to make sure we’re ready for PAYE Modernisation. Our aim is to ensure the new PAYE process is a seamless and smooth process for our users.
Our development team have already experienced what it is like to implement real time processing and reporting in the UK. Our understanding and knowledge coupled with the reliability and maturity of Thesaurus payroll software will guarantee a user-friendly PAYE Modernisation experience.
We understand how stressful this change is going to be for payroll professionals and as a result, to help you get it right, Thesaurus have teamed up with a Revenue representative to bring you a series of webinars where you’ll gain the knowledge needed to comply with and master the new PAYE changes. Places are limited - secure your place today.
PAYE Modernisation: Key facts you must know to ensure 100% compliance.
Agenda:
- An overview of PAYE Modernisation
- Recent updates and changes to PAYE Modernisation
- Can PAYE Modernisation be processed manually?
- Elimination of the P forms - P30, P60 P35, P46 and P45 forms
- Making corrections in real-time
- The role of payroll software
- How PAYE Modernisation will affect small employers
- The benefits of PAYE Modernisation for you
- 10 step Checklist to PAYE Modernisation
- How Thesaurus Payroll handles PAYE Modernisation
The Panel
Main presenter: Paul Byrne
Guest presenter: Sinead Sweeney
Guest presenter: Sandra Clarke
More information | Secure your place
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Thesaurus Payroll Software | BrightPay Payroll Software
Oct 2018
10
Budget 2019 Employer Payroll Focus
Pay As You Earn (PAYE)
- There was no change to tax rates for 2019, the standard rate will remain at 20% and the higher rate at 40%.
- Standard Rate Cut Off Points (SRCOPs) will be increased by €750 from 1st January 2019.
Earned Income Tax Credit
The Earned Income Tax Credit will be increased by €200 from €1,150 to €1,350.
Home Carer Tax Credit
The Home Carer Tax Credit will be increased by €300 from €1,200 to €1,500.
Universal Social Charge (USC)
- Exemption threshold remains at €13,000
- 4.75% rate reduced to 4.5%
- 2% threshold increased by €502 from €19,372 to €19,874
- No change to 8% rate
For 2019, USC will apply at the following rates for those earning in excess of €13,000
| Rate Bands | Rate |
| Up to €12,012 | 0.5% |
| Next €7,862 | 2% |
| Next €50,170 | 4.5% |
| Balance | 8% |
Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will pay a maximum rate of 2%.
The emergency rate of USC remains at 8%.
Non PAYE income in excess of €100,000 is subject to USC at 11%.
National Training Levy
The National Training Levy of 0.8% which is collected as part of the employer PRSI contribution will increase to fund further and higher education, the increases are as follows:
- 0.9% in 2019
- 1% in 2020
Pay Related Social Insurance (PRSI)
With the increase in the National Training Levy which is collected as part of the employer PRSI contribution, employer PRSI will increase as follows:
- 8.6% increased to 8.7%
- 10.85% increased to 10.95%
The weekly threshold for the higher rate of employer PRSI will be increased from €376 to €386.
The rates of PRSI for Class S will remain unchanged but the range of benefits available to Class S contributions will be extended to include Jobseeker’s Benefit in late 2019.
Benefit in Kind (BIK) - Electric Cars
The 0% rate of BIK introduced in Budget 2018 for electric vehicles provided by an employer to an employee has been extended until 2021 with a cap of €50,000 on the Original Market Value of the vehicle.
National Minimum Wage
The National Minimum Wage will increase from €9.55 to €9.80 per hour in respect of hours worked on or after 1st January 2019.
Social Welfare Payments
There will be a €5 increase in all weekly Social Welfare payments with effect from week commencing 25th March 2019. The maximum personal rate of Illness Benefit will be increased to €203 per week. Maternity Benefit and Paternity Benefit will be increased to €245 per week.
Paid Parental Leave
The Budget provides for 2 additional weeks paid parental leave per parent (paid by the DEASP) to be introduced in November 2019. The leave must be taken during the first year following the birth of a child.
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Sep 2018
21
BrightPay wins ‘Payroll Software of the Year’
BrightPay was announced the winner of ‘Payroll Software of the Year’ at this year’s AccountingWEB’s Software Excellence Awards.
The awards, which took place in London, are held by AccountingWEB - an online community for accounting and finance professionals in the UK. The winner is decided by a public vote, whereby members are asked to rate the software systems they use to determine the best products on the market.
It’s a great achievement for BrightPay to win the prestigious award, especially when you look at the number of larger software companies offering payroll in the UK. BrightPay also has a 99% customer satisfaction rate, and is used to process payroll for over 120,000 businesses across the UK and Ireland.
Marketing Manager at BrightPay, Karen Bennett says: “We’re delighted to win this award; it’s fantastic for BrightPay and our team to be recognised by our customers and the AccountingWEB members, and a massive thank you to everyone who voted for us.”
Paul Byrne, Managing Director, says: “It’s a real pleasure and honour to receive this award. It’s great to see such recognition for all the hard work we have put in. We work hard each year to improve the BrightPay experience for all of our customers, both in terms of the payroll software itself and the customer support that we offer.”
BrightPay in Ireland
In the Irish market, BrightPay is currently preparing for PAYE Modernisation, a real time reporting system that is being introduced on 1st January 2019. Essentially, employers will be required to report pay information to Revenue each pay period. This overhaul of the Irish PAYE system aims to ensure that employers and employees have the most accurate, up-to-date information relating to pay and tax deductions.
A similar system was introduced in the UK in 2013, which was seamlessly integrated into BrightPay UK payroll software. We have the relevant experience to ensure that PAYE Modernisation is just as streamlined in BrightPay Ireland. By switching to BrightPay Ireland, you can be assured that you have PAYE Modernisation compliant payroll software.
Book a demo today to see how BrightPay can help you with PAYE Modernisation.
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- Which is really better - the existing PAYE system or PAYE Modernisation?
- Manually calculating payroll with PAYE Modernisation
- PAYE Modernisation: Frequently Asked Questions
- BrightPay Ireland - Customer Survey - The Results are in!
Apr 2018
19
Real time reporting to become part of payroll processing
In less than a year the current PAYE system is going to change remarkably with the introduction of real time reporting known as PAYE Modernisation. The current payroll system hasn’t been modified since it was first introduced in the 60’s.
The main objective of PAYE Modernisation is to enable clear communication between Revenue and those who are processing payroll. This change will affect most, if not all businesses across Ireland.
Some of the common questions people have asked about PAYE Modernisation are:
- What do I have to do differently for PAYE Modernisation?
PAYE Modernisation will mean that people processing payroll will now how to submit a file to Revenue every pay period as opposed to the current annual ‘P’ forms. Payroll Software will make this a hassle free process, ensuring employers can easily comply with PAYE Modernisation.
- Will PAYE Modernisation be complicated?
PAYE Modernisation will likely cause a significant burden to employers, particularly small employers that do not currently utilise payroll software. BrightPay and Thesaurus Software will be fully equipped to make PAYE Modernisation a seamless process for payroll processors. Our developers have already implemented a similar real time reporting process for our UK payroll software.
- What will PAYE Modernisation cost my business?
As reports will need to be submitted to Revenue every pay period a lot of businesses will be relying on payroll software to do this for them. If you do not have payroll software in place, now is the time to think about purchasing. Luckily, low cost payroll software, like BrightPay and Thesaurus payroll will seamlessly handle PAYE Modernisation.
- Will PAYE Modernisation take up a lot of my time?
For companies still processing payroll manually, PAYE Modernisation will likely impose a significant time burden. For employers utilising payroll software like BrightPay and Thesaurus Software, administrative tasks will be significantly simplified. PAYE Modernisation reports required by Revenue can be sent easily from within the software. Also, the introduction of PAYE Modernisation has meant the elimination of the time consuming annual ‘P’ forms.
Free PAYE Modernisation Webinars
If there is something you’re still unsure of relating to PAYE Modernisation, we have teamed up with Revenue to bring you free online training webinars. These webinars are designed for employers and payroll bureaus to discuss what PAYE Modernisation will mean for your business and to help you prepare for the transition to the new system. You can sign up to our newsletter to get an invitation to our next PAYE Modernisation webinar.
Thesaurus & BrightPay Newsletter
GDPR is changing how we communicate with you. After May 2018, we will not be able to email you about webinar events, special offers, legislation changes, other group products and payroll related news without you subscribing to our newsletter. You will be able to unsubscribe at anytime. Don’t miss out - sign up to our newsletter today!
Thesaurus Payroll Software | BrightPay Payroll Software
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Apr 2018
5
PAYE Modernisation - An Introduction
From January 2019 businesses across Ireland will be required to start complying with PAYE Modernisation. Employers will be required to submit records electronically to Revenue each time a payroll is run (whether it’s weekly, monthly or quarterly), instead of annually. Revenue have reported that PAYE Modernisation will serve a number of purposes and ultimately benefit all employers.
Some of the key benefits employers include:
- Seamless integration into payroll.
- Minimize employer cost to comply.
- Abolition of P30s, P45s, P60s and end of year returns.
- Right tax paid on current due dates.
- Time saving.
It is vital that employers are prepared in order to ensure that the transition in January 2019 is as smooth as possible and to avoid any potential penalties from Revenue.
Our payroll software will help ensure you are fully prepared to make your first submission in January 2019. To get an overview of how PAYE Modernisation will look like on your payroll, book an online demo today.
Free PAYE Modernisation Webinar
PAYE Modernisation is a new system that is being introduced where all employers must comply and implement the new PAYE changes. From the 1st January 2019, your payroll will need to be processed in real time, where employers will calculate and report their employee's pay and deductions as they are being paid. This PAYE reform aims to make it easier for employers to pay the correct amount of income tax, PRSI, USC and local property tax and send these figures directly through to Revenue.
- PAYE Modernisation - Understand how your payroll processing will change
- Guest Speaker: Sandra Clarke (BCC Accountants)
- Guest Speaker: Sinead Sweeney (Revenue)
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- 2018 and beyond!
- PAYE Modernisation - What do these changes mean to you?
- The advantages of PAYE Modernisation
Nov 2017
20
Taxation of Illness Benefit - 2018
Currently, employers are required to tax Illness Benefit and Occupational Injury Benefit payments paid to employees by the Department of Employment Affairs and Social Protection (DEASP).
With effect from 1st January 2018, employers will no longer be responsible for taxing Illness Benefit. From this date Revenue will tax Illness Benefit by adjusting employee's tax credits and/or rate bands. Revenue will receive real-time interfaces of taxable DEASP income and the adjusted tax credits and/or rate bands will be notified to employers via P2C files. As a result of this change there will be more frequent P2Cs for employees. While payroll operators will no longer need to tax Illness Benefit, it will be extremely important to implement amended P2Cs immediately.
In addition, from 1st January 2018 Illness Benefit letters will no longer be delivered to the ROS Inbox. In light of this change, employers may need to review their sick pay schemes.
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Thesaurus Payroll Software | BrightPay Payroll Software
Nov 2017
16
Why not get more for you and your employees when making Bonus payments?
As the long dark evenings set in and Halloween is over, the build up to the most wonderful time of the year will begin again! At this time of the year a significant amount of employers pay-out a Christmas/annual bonus and no matter how little or large the bonus is, a large portion ends up being paid over to the Revenue if it is put through the payroll as a taxable addition.
For example, if an employee’s salary is €35,000 per annum and they receive a bonus of €1,000 at Christmas, this employee would only receive around half of this amount after tax, employee PRSI and USC. The company would also be liable to pay 10.75% employer PRSI on the bonus, so in addition to giving the bonus of €1,000 there is also the extra €107.50 meaning the bonus is in fact costing the company €1,107.50.
The Solution
Revenue allow one small non-cash benefit per employee per annum up to the value of €500, PAYE, PRSI OR USC do not need to be applied to the benefit. A gift card or voucher seems to be the most popular way of allowing this payment to be made to the employee. The most popular gift card would seem to be One4All gift cards. Thesaurus Payroll Manager offers unique integration with One4All allowing employers to purchase gift cards quickly and easily for their employees. The integration offers a range of benefits, including:
- The ability to pay via EFT, a facility not available to regular gift card customers
- No additional charges, unlike when purchasing direct from the Post Office
- Tracking of gift cards purchased so that you as an employer are alerted if you attempt to purchase more than one gift card for an employee in any one tax year
- Prevention from ordering a card in excess of the exemption limit, i.e. €500.
Please note, where a benefit exceeds €500 in value, the entire amount will be subject to PAYE, PRSI and USC.
Purchasing gift cards through Thesaurus Payroll Manager is both simple and straightforward. To order, simply click on the Gift Card option at the top right hand side of the screen, fill in your company details, select the amount for each employee's gift card and click to proceed to the gift card website. The software will bring you to the gift card website where you will arrange payment and delivery details.
It is also possible to order Me2You gift cards through Thesaurus Payroll Manager, if required tick to order from Me2You.
For further details, click here.
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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
13
Maternity Leave & Benefit Extended for Mothers of Premature Babies
Paid maternity leave has been extended in cases where a baby is born prematurely.
Up until now, mothers in Ireland were entitled to 26 weeks maternity leave with 16 weeks additional unpaid leave which must be taken immediately after the end of the maternity leave.
This meant that for some mothers of premature babies, their leave could be almost used up by the time they get their baby home from hospital.
However under the new arrangements, mothers of premature babies will be entitled to an additional period of paid maternity leave.
From 1st October 2017, the period for which Maternity Benefit is paid is being extended in cases when a baby is born prematurely. The benefit will extend for the duration between the actual birth date of the premature baby to the date when the maternity leave was expected to commence. This will extend the existing 26 weeks of paid maternity leave, so that mothers of premature babies can give their children the care and attention that they need.
This change will benefit nearly 4,500 women annually.
You can view more information about Maternity Benefit on the Department of Employment Affairs and Social Protection’s website.
Nov 2017
10
2018 and Beyond
With GDPR kicking in next May and PAYE Modernisation going live in January 2019, accountants and other bureau payroll providers will have a lot to contend with.
PAYE Modernisation will involve major process changes for many of your clients (just to ensure that a file is submitted to Revenue on or before the payroll date). Ensuring that payrolls are processed using the most up to date tax credits and cut off point information is also an essential part of the new system.
Because Illness Benefit becomes taxable through the P2C file from January 2018, ensuring that you use the most recent P2Cs will become a must before each and every pay run from as soon as January 2018.
We have been busy making updates to Thesaurus Payroll Manager 2018 to better prepare you for all of the above changes. Here is a quick outline of the software changes that we have made for 2018. These changes are in addition to those which cater for Budget 2018.
GDPR
Password retrieval is now an automated process which will require a recovery email address for each payroll client.
We have added a bit more file encryption so that you will be better protected if your system is compromised, your laptop is stolen or a memory stick goes missing.
You may be aware that our recent year end upgrade includes a feature whereby backup files can be securely sent to our support staff, should it be required to help with a support query.
Optionally, our cloud add on, Thesaurus Connect, will enable you to backup securely to a secure European Azure server and restore securely from that server to your payroll. Thesaurus Connect will also provide you with the added benefit of giving your clients and their employees direct access to their personal data, ensuring transparency and assisting with Data Subject Requests.
PAYE Modernisation and Illness Benefit Changes
Thesaurus Payroll Manager 2018 gives much more priority to the P2C download process, also keeping a log of all imports and reminding you when P2Cs have not been imported.
To prepare you for the new reality, where payrolls will be required to be processed in real time, we have included a “Late Payrolls” button to help identify those payrolls that are falling behind. This will be particularly useful where you have hundreds of payroll clients.
Knowing that your own processes will probably need to be more streamlined with real time submissions, we have added (and will continue to add) automated client emailing from within the software. Our initial 2018 release will include this for the payroll preview report. It will also include emailing of a single pdf document containing all payslips, the emailing of the P30 and emailing of the payroll summary report. It should be noted that these emails are transmitted securely through our Thesaurus servers and do not require third party software. This is the same system that our payslip emailing currently uses.
Towards the latter half of 2018, Revenue will ask you to submit a list of employees for each employer through ROS. The ability to prepare this file is in our initial 2018 release. The file is required by Revenue for data alignment. Their aim is to have knowledge of the correct employment details for as many employees as possible when PAYE Modernisation goes live.
At Thesaurus Software we plan to help you with PAYE Modernisation as much as we can. We have already been through these changes in the UK and can use this experience to help address issues before they arise.
We will bring you further updates throughout 2018, in many cases via free webinars (which will also help with your structured CPD requirements). Register for our next free webinars here.
We will begin testing the new real time systems with Revenue from April 2018 and we’ll keep you appraised of our progress.
Finally, we have included a few more importers should any of your clients (or colleagues) choose to move from other payroll software.
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