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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Posted byAudrey MooneyinPayroll


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.

 


Related Articles -

 

 Thesaurus Payroll Software | BrightPay Payroll Software

 

Posted byAudrey MooneyinPayrollSick Leave/Absence Management


Oct 2017

11

Budget 2018 - Employer Payroll Focus

Pay As You Earn (PAYE)

  • There was no change to tax rates for 2018, 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 2018.

Emergency Basis of PAYE

Employee provides PPS Number:

Where an employee does not provide their PPS Number the higher rate of 40% tax applies to all earnings.

Earned Income Tax Credit

The Earned Income Tax Credit will be increased by €200 from €950 to €1,150.

Home Carer Tax Credit

The Home Carer Tax Credit will be increased from €1,100 to €1,200.

Universal Social Charge (USC)

  • Exemption threshold remains at €13,000
  • 2.5% rate reduced to 2%, threshold for this rate increased from €18,772 to €19,372
  • 5% rate reduced by 0.25% to 4.75%
  • No change to 8% rate

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%.

PRSI & USC

The Minister outlined his intention to establish a working group in 2018 to carry out a review of the possible integration of PRSI and USC.

National Training Levy

The National Training Levy of 0.7% which is currently collected as part of the employer PRSI contribution will increase to fund further and higher education, the increases are as follows:

  • 0.8% in 2018
  • 0.9% in 2019
  • 1% in 2020

Pay Related Social Insurance (PRSI)

There were no changes to general PRSI thresholds or employee PRSI announced in the Budget. However, as the National Training Levy is increasing and it is collected as part of the employer PRSI contribution, employer PRSI will increase as follows:

  • 8.5% increased to 8.6%
  • 10.75% increased to 10.85%

Benefit in Kind (BIK) - Electric Cars

A 0% rate of BIK will apply to electric vehicles provided by an employer to an employee in 2018 which is available for private use. Electricity used by the employee in the workplace to charge the car will also be exempt from BIK.

PAYE Modernisation

PAYE Modernisation will be effective from 1st January 2019. Budget 2018 has allocated €50 million for a project to enhance Revenue's IT capacity and to ensure employer compliance.

National Minimum Wage

The National Minimum Wage will increase from €9.25 to €9.55 per hour in respect of hours worked on or after 1st January 2018.

  • Workers under age 18 will be entitled to €6.69 per working hour
  • Workers in their first year of employment over the age of 18 will be entitled to €7.64 per working hour
  • Workers in their second year of employment over the age of 18 will be entitled to €8.60 per working hour

Social Welfare Payments

There will be a €5 increase in all weekly Social Welfare payments with effect from 26th March 2018. The maximum personal rate of Illness Benefit will be increased to €198 per week. Maternity Benefit and Paternity Benefit will be increased to €240 per week.

Posted byAudrey MooneyinCustomer Update


Sep 2017

18

Long Service Awards - Appreciation to staff

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.
Details can be found on Revenue's website

 

 

 

 

New PAYE Modernisation legislation to be in place by Jan 2019

Are you ready for PAYE Modernisation?

Posted byAudrey MooneyinEmployee Records


Mar 2017

31

Important Information for Employers - Changes to Civil Service Travel Rates

Where employees use their own private cars or motorcycles for business purposes, reimbursement in respect of allowable motoring expenses can be effected by way of flat-rate mileage allowances.

There are two types of mileage allowance schemes which are acceptable for tax purposes if an employee bears all the motoring expenses: 

 

  • The prevailing schedule of Civil Service rates; or 
  • Any other schedule with rates not greater than the Civil Service rates


The Department of Public Expenditure and Reform has recently published circulars with new Civil Service Travel Rates, the revised rates are effective from 1st April 2017. The distance bands have increased from two to four with a lower recoupment rate for the first 1,500 kilometres.


Business travel carried out between 1st January and 31st March 2017 will not be affected by these new bands and rates, business travel to date from 1st January 2017 will count towards the cumulative business travel for the year.

 

Motor Travel Rates - Effective from 1st April 2017

 

 

Reduced Motor Travel Rates per kilometre

 

 

The reduced rates are payable to Civil Service employees who undertake a journey associated with their job but not solely related to the performance of their duties, such as:

 

  • Attendance at confined promotion competitions
  • Attendance at approved courses of education
  • Attendance at courses or conferences
  • Return visits home at weekends during a period of temporary transfer

 

The Motor Travel Rates for motorcycles and bicycles remain unchanged as follows:

 

Motorcycle:

 

Bicycle: 8 cent per km

 

Please note, there are changes to subsistence rates which are also effective from 1st April 2017.

Please click here for the circular on Motor Travel Rates, and here for the circular on Subsistence

Posted byAudrey MooneyinPay/WagePAYEPayrollPayroll SoftwareWages


Sep 2016

10

Jobs & Pensions Service – New Online Service for Employees

The Jobs & Pensions Service available from Monday 12th of September 2016 is a new online service for employees. Irish employees can register their new job (or private pension) with Revenue using the service.

The Jobs and Pensions service replaces the Form 12A, meaning employees must register their first job in Ireland using the service. After registering employment using the service a tax credit certificate will issue to both the employer (P2C) and employee.

The service can also be used by employees who are:

• changing jobs provided the previous job has been ceased on Revenue records, employees will be able to see when they log in if the previous job has been ceased

• starting a second job in addition to their main job

• starting to receive payments from a private pension

Access to the service is available in myAccount, employees must register to use the service.

Employers should:

• encourage new employees to register for myAccount

• provide new employees with the information required to register their new job (registration can be done in advance of the start date):

- tax registration number
- start date of the new job
- pay frequency
- staff number is one has been allocated

• no longer submit a P46 form where employees register their own job using the service

• continue to upload P45(3) as normal

• continue to issue P45s immediately on cessation of employment

• operate the emergency basis for PAYE & USC if a pay day occurs before receipt of either P45 or P2C

Further information on the service can be found in Revenue’s Employer Notice September 2016, which can be found here.

Posted byAudrey MooneyinPayroll Software


Oct 2015

27

Small Benefit Exemption Scheme - Increase in threshold

The Minister for Finance Michael Noonan is set to fast track an increase in the threshold for the Small Benefit Exemption Scheme. The current threshold is €250; this will double and will increase to €500. The last time the threshold was increased was in 2005 when it was increased from €100 to €250. The move is contained in the Finance Bill, published last week. The new rules were expected to be implemented from 1st January 2016 however, The Department of Finance say the change will be implemented in time for Christmas.

Under the Revenue Commissioner’s Approved Small Benefit Exemption Scheme employers can provide employees with a small benefit, this small benefit is not subject to PAYE, USC or PRSI.

The following rules apply:

• The benefit cannot be cash, cash payments are fully taxable
• Only one such benefit can be given to an employee in one tax year
• Where a benefit exceeds the threshold the full value of the benefit is subject to PAYE, USC & PRSI
• The benefit can not form part of a "salary sacrifice" scheme

The small benefit is traditionally given as a voucher often at Christmas, as mentioned above only one such benefit can be given to an employee in one tax year. Where more than one benefit is given in a tax year only the first benefit will qualify under the Small Benefit Exemption Scheme.

Full details of Finance Bill 2015 can be found on Revenue’s website
http://www.revenue.ie/en/practitioner/law/bills/finance-bill-2015/index.html

Posted byAudrey MooneyinPayroll Software


Oct 2015

15

Budget 2016 – Employer Payroll Focus

Tax Rates and Standard Rate Cut Off Points (SRCOPs)

There has been no change to tax rates or SRCOPs. The standard rate of tax will remain at 20% and the higher rate of tax will remain at 40%.

There has been no change to the SRCOP and Tax Credits on the Emergency Basis of tax.

Universal Social Charge (USC)

The annual threshold for USC has been increased to €13,000 from €12,012.

Please note full medical card holders and individuals aged 70 and over whose aggregate income does not exceed €60,000 will pay a maximum rate of 3%.

The emergency rate of USC remains at 8%.

PRSI

Increase from €356.01 to €376.01 in the weekly threshold at which liability to employer’s PRSI increases from 8.5% to 10.75%.

A tapered PRSI credit has been introduced for employee PRSI; the PRSI credit will commence in respect of weekly income of €352.01 and will taper out as a weekly income reaches €424.

For earnings between €352.01 and €424, the maximum weekly PRSI credit of €12.00, is reduced by one-sixth of earnings in excess of €352.01.

Example: 

Gross weekly earnings of €377
Maximum PRSI Credit €12
One-sixth of earnings in excess of €352.01
(€377-€352.01 = €24.99/6) (€4.17)
Reduced PRSI Credit €7.83
PRSI @ 4% €15.08
Less: Reduced PRSI Credit €7.83
Employee PRSI Weekly Liability €7.25

Posted byAudrey MooneyinPayroll Software


Sep 2015

28

Free business event for employers in the North East - Taking care of business

After previous successful events, Revenue is participating in another free one-stop-shop event for SMEs, “Taking Care of Business”. If you own or manage a small business, or are thinking of starting your own business, you should visit www.takingcareofbusiness.ie to register as places are limited.

This is an initiative organized by the Department of Jobs, Enterprise & Innovation.

The events have been designed to help small and start-up businesses understand and benefit from the services provided by a range of State Bodies.

Attendees will:

• Meet with representatives from a number of State Offices & Agencies
• Get information & advice on running your business
• Find out ways to save your business money
• Receive support to help you in your business

This half-day event will take place on Thursday, 8th October in the Westcourt Hotel, Drogheda, Co. Louth.

To find out more and to register, please visit www.takingcareofbusiness.ie

Posted byAudrey MooneyinEvents


May 2015

22

IPASS - Annual Payroll Conference

IPASS (IRISH PAYROLL ASSOCIATION) held their annual payroll conference in Croke Park on the 21st May. Paul Byrne and Audrey Mooney from Thesaurus Software Limited attended the conference. They enjoyed meeting the other exhibitors, the delegates and listening to the guest speakers. The speakers included Lindsay Melvin the CEO of the Chartered Institute of Payroll Professionals (CIPP), John Kelly from the National Employment Rights Authority (NERA), representatives from Revenue and Department of Social Protection (DSP).

It was also an opportunity to show our payroll product BrightPay which is available for Irish and UK payroll. BrightPay is a simple but powerful payroll software package that makes managing payroll quick and easy. It is designed for small to medium sized businesses, accountants and other payroll bureau providers.

BrightPay Ireland can be downloaded from www.brightpay.ie

BrightPay UK can be downloaded from www.brightpay.co.uk

BrightPay installs as a trial version, which you can use licence free for 60 days at no cost.

Thank you and congratulations to Noelle Quinn and the IPASS team for another successful and enjoyable annual conference.

Posted byAudrey MooneyinEventsPayroll Software