Sep 2022
13
What’s the craic with Statutory Sick Pay in Ireland?
The year is 2021, the month is June. Olivia Rodrigo’s “Cool 4 U” is number one in the charts, we are still in the midst of a nationwide lockdown. You’re in bed sick, sipping flat 7-Up and your job doesn’t offer statutory sick pay. Things are looking bleak. But suddenly, your ears prick at an announcement on the news saying that the government plans on bringing in a national Statutory Sick Pay (SSP) scheme. A ray of light shines in the window.
Fast forward to today and you’re back in the office, lockdown is in the distant past and the Sick Leave Act 2022 has become law and will come into force early next year. Ireland was one of the only advanced economies in Europe without mandatory sick leave entitlement so this is excellent news. Before, sick leave was at the discretion of the employer.
From January next year, SSP is being phased in over a four-year period starting with three days payable per year in 2023, rising to five days payable in 2024, seven days payable in 2025 and eventually, by 2026, employees will cover the cost of 10 sick days per year. The phased introduction is to allow employers to prepare and budget for the scheme and its associated cost.
So what do employers have to do? The SSP will be paid at the rate of 70% of the employee’s wage, subject to a daily threshold of €110. The eventual 10 days, or two working weeks, will be in addition to other leave, as well as public holidays.
There are some caveats however. Employees will have to provide a medical certificate to qualify for SSP and will need to have been employed by the employer for a minimum of six months before they can claim SSP. The leave must also be in relation to a day or days when an employee would usually work but is unable to due to illness or injury. The leave can also be taken as consecutive or non-consecutive days.
“And how will this affect employers” I hear you ask? Well, if you don’t already have a sick leave scheme in place at your company the new legislation may impose costs onto you. These include administrative costs in relation to setting up and implementing the scheme, along with maintaining records.
In the records you are required to keep information on:
- The employees’ period of employment
- The dates of statutory sick leave in respect of each employee
- The rate of statutory sick leave payment in relation to each employee
Employers may also wish to update their template contracts for new hires to include that contractual sick pay is inclusive of any applicable SSP entitlement. It is also important that you examine existing policies and contracts to make sure they comply with the minimum statutory entitlement under the SSP scheme when it comes into effect. Or, if you use employee contract software like Bright Contracts, this information will be automatically updated for you.
If you already have a sick pay scheme in your company and the existing provision is as favourable or more favourable than the statutory provision, you’re good to go and no changes are needed. It’s only when the existing provision in your standard entitlement employment contract is less favourable than the statutory provision that you will then have some work to do to bring it up to speed.
So there you have it! It might seem like a bit of a headache (no pun intended) but in the long run the scheme will benefit both employers and employees alike. You don’t have to deal with Margaret coming into work and coughing all over you, spreading germs. Plus, employees will feel more protected and valued when they can recover in the safety of their own bed with a hot water bottle and a good ol’ Netflix subscription.
Written by Aoibheann Byrne | BrightPay Payroll Software
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Dec 2020
18
Why not add some sparkle to Christmas with the perfect cloud solution
What springs to mind when you hear the word ‘cloud’ will vary from person to person. Some will think of the weather as they look, grumbling, out their front window. But others will be thinking about all that extra storage on their iPhone. The meaning of the word has changed in recent times and most of us will now think the latter. But what about those who haven’t a notion what you’re on about? What is the cloud?
The cloud is a general term for any computing service that involves hosting over the internet to deliver computing services in lieu of a hard drive. Services such as storage, payroll and HR information. The other key feature is that you can access these services or information anytime, anywhere from any device that is connected to the internet. In fact, you’re already using cloud services if you use social media, Google Drive and Dropbox to name but a few. And now the cloud has become a must-have for any business who wishes to keep up with the times.
I can hear some of you now: “It sounds great, but my employees would never use something like that”. Well, that’s where you’re wrong. A recent survey found that 48% of people believe technological advances will change the face of the workplace and a massive 87% of those said they would be happy to adapt to technological changes if the right tools were given to them. Wow! So how do I know which cloud platform to choose for my business?
I’m glad you asked! Our experts got together for a brainstorming session and found that there are four key things to look out for when choosing the right cloud platform for your business - cost, compliance, simplicity and connection.
- Cost - Your upfront costs should be minimised – using the cloud shouldn’t be an expensive luxury reserved for big corporations. Make sure it provides the option of having multiple users so you can delegate and give access to various people to manage payroll tasks and HR requests on your behalf.
- Compliance - Make sure it takes into account your obligations as an employer with regards to things like the GDPR legislation and record-keeping requirements. A good platform will have compliance built-in as standard and will manage it seamlessly.
- Simplicity - The most important thing to increase the uptake of a cloud platform is to make sure it is user-friendly and reduces the chance of human error. Look out for simplistic interfaces and whether or not training and support are available. The best of the best will offer this support for free. You should also be able to get set up and ready to go with minimal disruption to your business.
- Connection - Make sure it offers features that are attractive to employees such as a downloadable app, a self-service portal and company-wide communication features. Because at the end of the day, your employees won’t give a damn about how excited you might be about something unless it works for them too. These features tie in with our ever-increasing digitally-minded workforce and will make them feel more in control and engaged.
So, there you have it… off you go now! Good luck scouring through the internet trying to find the perfect cloud platform. But…., well, ....it is Christmas after all and I’m feeling generous. Ah, what the heck, I’ll just let you in on a secret which is the best cloud payroll platform for businesses out there: our very own BrightPay Connect.
BrightPay Connect is an add-on to BrightPay’s award-winning payroll software and ticks literally every single box I just mentioned over the course of this post. I’ve done enough talking so instead let me show you. Book a demo today to find out why BrightPay Connect is the perfect fit for your business.
Merry Christmas everyone! Don’t say I didn’t get you anything!
Feb 2020
19
The amazing HR features of BrightPay Connect
Did you know BrightPay offers the perfect HR solution on top of an already award-winning payroll software? Buckle in, because I’m about to take you on a tour of their amazing HR features.
Employee self-service
To say that BrightPay Connect will reduce your workload immediately is a bold statement. But I ain’t kidding. The powerful online portal allows employees to access and retrieve historic payslips along with other payroll documents themselves. This eliminates all the boring and incessant requests from employees, hurrah!
You no longer need your payroll department or manager to upload or amend basic personal details as employees can now, yes you guessed it, do it themselves! This reduces administration duties for managers, empowers employees and makes the world a better place.
Annual leave management
Employees can submit holiday requests with a few simple clicks through the online portal. These will go straight to the manager who will be notified immediately. Not only that, but the manager can view the company-wide holiday calendar before approving. Employees can also view their remaining holiday balance, which is automatically updated when leave is requested, meaning everyone is up-to-date.
Document upload
The document upload feature allows managers to share documents with individual employees, teams or departments, or the whole company should you so please. All at the touch of a button. This could be anything from a training manual to the company handbook, or even individual contracts of employment. You can even see who’s viewed circulated documents and who hasn’t, so the little Pinocchios won’t get away with pretending they didn’t get the memo.
Company messaging
Speaking of memos, there is also a handy company messaging feature. Whether it’s a notification about the Christmas party or a gentle but firm reminder to people to keep their workspaces tidy, the notification system will transform internal communications. There’s even a control feature which allows you to schedule company notifications in advance and specify how long notifications should be visible for.
Employee calendar
The employee calendar allows managers to see at a glance who is on leave, when, and what type of leave they’re on. It’s also colour-coded and highlights various types of leave, making staff scheduling and managing leave as easy as 1-2-3.
Did I also mention that you can restrict functionality for certain users, manage access levels for different staff and even make some employees (like the big boss) confidential.
Yes, BrightPay Connect does all that on top of their amazing payroll features. Book your free demo and watch your world change!
Jan 2020
28
Your concerns about auto- enrolment addressed
Finally, after years of promises, the Irish Government has set a date for auto- enrolment to be rolled out in Ireland in the year 2022. It’s exciting news because it has been apparent for a long time that the current State pension is just not enough to have a decent standard of living. But while the need for auto- enrolment is unanimously agreed upon, people still have opinions on the means of delivering it.
Look, it was never going to be easy. Regina Doherty, Minister for Employment Affairs and Social Protection (aka the woman behind the wheel) has previously described auto- enrolment as “perhaps the most fundamental policy reform in a generation”. Not an easy feat! With such a momentous task there will always be a diverse range of feedback, which is a polite way of saying that people have some concerns.
So what are these concerns? While there are valid opinions from actuaries and the like, I want to just concentrate on us little folk; the regular Joes and Jills and how auto- enrolment may affect us. The most resounding criticism at this level is the exclusion of certain groups of workers, including those under 23 or over 60, those earning below €20,000 and the self-employed. However, although not automatically enrolled, members of these groups would still be able to opt in to the system.
A lot of people are also wondering about the State pension - isn’t it enough? Well, the answer is no. Although promised in the past, the State pension has still not increased in line with wages or inflation and let’s face it, €12,000 a year won’t be enough for a bag of cough drops and a couple of pints in a few years, let alone a decent standard of living!
The number of people over 65 in Ireland is set to double in the coming years, and it’s estimated that two- thirds of them are currently employed and do not have a workplace pension. Don’t worry, the State pension won’t be gotten rid of altogether. Auto- enrolment is seen as a top-up, starting at the proposed 1% of your wages, and rising to 6% after 10 years. With employers required to contribute the same amount, 12% of your salary will be going towards your pension pot. Not bad right?
And what about employers? “How much is this going to cost me?” and “How much extra work is involved” I hear them grumble. While it’s true that employers will have the additional financial cost of contributing towards their employees’ pension schemes, it doesn’t mean it has to break the bank. If you’re fortunate enough to use a good payroll software then this will handle and automate the administrative duties for you. If you aren’t fortunate enough then let me tell you about BrightPay.
With BrightPay it’s simple. We have the experience to guide you through the process, having already rolled out a similar system in the UK. BrightPay will automate auto- enrolment duties at no additional cost. All BrightPay payroll packages will include auto- enrolment plus free phone and email support to help you through your auto- enrolment journey.
Like it or not, auto- enrolment is on its way. It’s normal to have doubts and concerns, but given our savings rates, demographics and the increasing number of people who rely on State pension, then auto- enrolment is definitely the right path for Ireland and all of us future golden oldies.
BrightPay Payroll Software will be able to seamlessly cater for Auto Enrolment without any additional costs to the software, and also includes free phone and email support.
Sep 2019
24
Are you owed income tax? €4 billion claimed back already from Revenue since 2010
Oh boy, have I got news for you! So, word on the grapevine (aka the national newspapers) is that you, yes YOU, could possibly maybe probably hopefully might be due a tax refund. Huzzah! Music to anyone's ears. But how? Well, according to Revenue, a whopping €4 billion (yes that’s a B) of income tax has been claimed back from them since 2010; and there’s plenty more where that came from!
How did this happen? So it turns out that us Irish are just so laid back that we barely noticed when we were due relief or weren’t assessed for tax properly. If your tax credits were not correctly applied, if you didn’t claim tax relief on health expenses, nursing home fees and other allowable expenses then it all starts to add up. If you changed job half way through the year and were not assessed in the right way, again, you could have been overpaying tax the whole time and adding to Revenue’s coffers!
Since the introduction of PAYE Modernisation in January 2019, these small errors are being picked up automatically as that’s literally what PAYE Modernisation was designed to tackle. Fortunately, you can claim any overpaid tax that was paid in the last 4 years. Be aware however, once the overpayments are gone - they’re gone. And when the underpayments are gone, they're gone too.
In fact, Revenue are actively encouraging employees to look at the income tax they’ve paid in the last 4 years and if you think you’ve overpaid, you can seek a refund from the Revenue by requesting a P21 Balancing Statement, which is available to all PAYE customers through their myAccount. The statement outlines:
- Your income from all sources
- A breakdown of your tax credits
- Any tax and Universal Social Charge you’ve paid throughout the year
- Any underpayments or overpayments of tax
Feb 2019
1
ROS digital certificates - why you need one ASAP
Fun fact: Ireland is considered 1st in the EU when it comes to paying taxes!! Yes, I was just as shocked as you are! 1st in the EU at talking the ear off you and definitely 1st in the world at having the almighty craic, but paying taxes? Gosh not only are we funny and friendly, we’re honest and hardworking too! We’re so into our taxes and payroll that we are completely revolutionizing the way PAYE is reported to Revenue starting in the new year. When I say ‘we’, I mean it was the Irish government.
Yes that’s right folks I’m talking about PAYE Modernisation, the biggest (and best) change to PAYE since its introduction back in 1960. While, not everyone will agree, PAYE Modernisation will most definitely be a good thing for employers and employees. But today I want to talk about a very important certificate.
What are digital certificates? Revenue uses “digital certs” to allow business customers to electronically access their Revenue Online account and “sign and submit” their returns via the electronic channel (ROS). Essentially the process of electronically “signing and submitting” acts in lieu of a legal signature and ensures that the transactions and communications between business customers and Revenue cannot be repudiated at a later stage. It is also required by agents who wish to access online services for their clients.
Not only is this quite nifty, it is super secure. We're talking pinky promise between two grown men secure, that the information is locked down! And this security has been credited with the success of the digital certificates, and is possibly one of the key factors contributing to us paying our taxes so well.
But Aoibheann, digital certs have been around for ages, why the sudden interest? What else is going to make a comeback, bootleg jeans? Well digital certs are now a hot topic thanks to the introduction of PAYE Modernisation which came into effect on January 1st 2019. I’ve talked before about how you should be using payroll software in order to utilise it effectively, but equally as important is downloading your ROS digital certificate. Without this digital cert the PAYE Modernisation features in your software won’t work. You need to be able to access the ROS servers directly from your payroll software and likewise for the payroll information to be able to upload seamlessly to ROS from your computer.
The digital cert may sound scary but Thesaurus Software have put together a step by step guide on how to save and reload your digital certificates. It’s so simple, you wouldn't even need to get one of your grandkids to it for you.
Well, what are you waiting for? Get moving! So you can focus on real issues, like what to wear to bingo on Thursday.
Written by Aoibheann Byrne | BrightPay & Thesaurus Payroll
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Dec 2018
18
Stranger Danger! - Be aware when processing your tax rebate
Ah humans, we’re a lovely bunch aren’t we? An industrious lot some might say. Always finding ways to adapt, to evolve…...to manipulate. No matter what, if a situation exists where someone can be scammed, then get in line sweetie because there is already a slew of people that have beat you to it. It’s no different this time.
With the introduction of PAYE Modernisation a number of dodgy tax refund websites have sprung up left right and centre with the aim of conning you, yes YOU, out of your hard earned punts and pignins.
These sites basically offer to process tax refunds on your behalf and “all” they ask in return is 10% of the final amount of your rebate whilst also asking you to input your personal details such as your DOB, bank details, PPSN number, and so on. So never mind that this is a pretty bad deal already, the worst thing is that all they do is take the exact same information that you just typed in, and then type the exact same information into the Revenue website and charge you for the courtesy of doing so!
Daylight robbery doesn’t even cover it. The absolute CHEEK of it doesn’t even cover it either! People are needlessly giving these sites a cut of their tax refund, as well as their personal details….for nothing! Zilch. Zero. Nada!
Now I’ve known some amadán úfásachs in my life. There was a boy in my class, Séamus, who thought that teachers lived in the staff room and that chocolate milk came from brown cows. My own mother thought I was going to grow up to be a nice respectable young woman. HA! But giving someone online your details and money for nothing? Now that is just plain stupid. #sorrynotsorry
So what has this got to do with PAYE Modernisation? Where is my tax refund? How come I’ve never seen a baby pigeon? Well, under the new PAYE system, employers have to report employees’ pay and deductions each time they are paid instead of once a year. For anyone who is not properly registered under the PAYE system (for example, a foreign national newly arrived to Ireland) they will be put on emergency tax until they’re registered. This will most likely result in a surge of people claiming tax rebates throughout the year.
Now besides the sheer silliness of it all there is also a more insidious side to all this. I have a feeling the “STRANGER DANGER” of the current generation will be “do not give your bank details to someone who asks for it online”. Not only that, but with all the details you are required to enter they basically have everything they need to impersonate you online whenever they want.
There is also an additional risk that these companies will overstate expense estimates on your behalf in the hope of getting a bigger refund, thus a higher percentage of their cut. If you are later audited by Revenue and they found that you used one of these websites that supplied fake information on your behalf (even without your knowledge) then you, yes YOU, and not the company would be liable for interest and penalties.
Be safe, be savvy, be sassy. That’s my motto. (That, and “there’s always time for a chicken nugget”). Think twice before using these sites or, you know, just don’t! It’s really not that arduous to apply for a refund yourself so don’t be lazy; it will be one less headache to deal with.
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.
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Dec 2018
4
PAYE Modernisation and SMEs - Why you need to get with the programme
The deadline for PAYE Modernisation is fast approaching but a significant number of SMEs are not ready. Even though there is still time, there are still many employers who process their payroll using a manual system. At this point all employers really should be taking the new PAYE legislation seriously and starting to prepare for the new changes. You know who has been preparing for PAYE Modernisation? Payroll software providers - that’s who!! Needless to say, I’m talking about BrightPay Software here.
Imagine it’s the Apocalypse; The End Of Days. BrightPay are the rednecks in the underground shelter with their AK-47s, mountains of tinned food and a water distiller in the back that doubles as a hooch factory. You are the procrastinator standing outside in the rain with an umbrella fighting a raccoon for tonight’s dinner. Get the picture?
Basically all payroll providers have known The Flood is coming. BrightPay has spent months upon months building a big ass boat i.e. making sure their payroll software will be compatible with the new Real Time PAYE system whilst also making their customers’ lives easier.
It is undeniable that these new changes, however beneficial, will have the most impact on small businesses. Unfortunately, many small enterprises do not use a dedicated payroll software and it means they will have to manually upload all of their payroll data every pay period. And the problem is that Revenue expect all businesses, regardless of size or location, to comply with the new changes the minute they come into force on the 1st of January 2019. (It’s equal rights, equal fights all over again).
I’ve talked in a previous post about how beneficial the new changes to PAYE are going be. But for SMEs that’s besides the point as they will be doing all the extra work if they use a manual system. But to be fair, Revenue are working on the assumption that most businesses have, you know, “gotten with the times” and are no longer using manual payroll methods. I’m sure Bridey from Skeheenarinky manages the bingo books just fine with a pen and paper but you know what Bridey? It’s time to get with the programme.
The point is, if you are not using payroll software, the time has now come to adapt and evolve. The system will not just be easier, it will be fully integrated with Revenue. Is there a more beautiful term in business? (Well..actually..“profit”.. “bonus”..“this meeting has been cancelled” - are all great but hey, you get the idea).
Now if like Bridey you are adamant that you’re not using some computer robot thingy that they make confusing on purpose just to make you feel silly in front of your grandkids then you have the option of using Revenue’s online system (ROS) to report payments and deductions. However, ROS will not compute the deductions that need to be taken from salaries. You will have to do that all yourself. And that means less time in the bingo hall with the girls admiring Frank’s new cane.
Why not do yourself a big fat favour and come join the payroll revolution by purchasing BrightPay to handle all your PAYE Modernisation obligations. Not only will it take the extra work off your hands, it will take EVEN MORE work off your hands by automating your payroll process and ensuring that you are PAYE Modernisation compliant. BrightPay also have a team of support staff that will assist you with the transition.
Go on Bridey, what have you got to lose? Go to BrightPay’s website to find out more.
Thesaurus Payroll Manager | BrightPay Ireland
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