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.
We are delighted to let you all know that we have been shortlisted by AccountingWeb for their Software Satisfaction Awards – Payroll Category. We would like to say a big thank you to all of our BrightPay customers that gave such positive feedback which has resulted in us being shortlisted. Customer satisfaction is paramount to us here in BrightPay. We will strive to ensure the highest level of customer satisfaction both in our product and service at all times.
The winners will be announced on the 7th November so wish us luck!
Up to now the classification for PRSI purposes, of directors of limited companies who work in that company (“proprietary directors”), has been determined on a case by case basis. This determination takes into consideration the Code of Practice for Determining the Employment or Self-employment Status of Individuals. (http://www.welfare.ie/en/Pages/Code-of-Practice-for-determining-Employment-or-Self-Employme.aspx )
Under the provisions of Section 16 of the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 proprietary directors who own or control 50% or more of the shareholding of the company, either directly or indirectly, cannot be an employee of that company. This provision comes into effect from 1 July 2013.
In these circumstances the individual is classified as self-employed and is liable to pay PRSI at Class S.
The classification of proprietary directors who own or control less than 50% of the shareholding of the company will continue to be determined on a case by case basis, taking into consideration the Code of Practice for Determining the Employment or Self-employment Status of Individuals.
The new provision will apply to proprietary directors both prospectively and retrospectively.
Where these provisions are to be applied retrospectively, a person has the option of electing to have the decision, in relation to his or her employment prior to the enactment of the legislation, made under the Code of Practice for Determining the Employment or Self-employment Status of Individuals. Any decision will only apply to the period of employment prior to the enactment of the legislation.
An employee may opt with Revenue for their LPT liability to be collected by deduction from their salary/wages.
Revenue will communicate to you how much you should deduct from employees in the P2C file (details of tax credits and cut off points) which will be sent to your ROS inbox in June 2013. The LPT field is a new field within the P2C file and BrightPay will detect it automatically once imported into the software. Paper tax credit certificates will also contain this new LPT field and BrightPay will have a new field for inputting the LPT amount manually.
LPT deductions commence for pay dates from 1st July 2013 and, in accordance with Revenue guidelines, BrightPay will deduct the LPT amount evenly over the remainder of the 2013 year. Where, in any pay period, there is insufficient pay to enable deduction of LPT, the balance remaining will be spread evenly over the remaining pay periods.
The LPT deduction, the amount deducted to date and the balance of LPT still to be deducted will be shown on payslips.
The amount you pay to the Collector General by way of a P30 (monthly or quarterly) will include the LPT amount that you have collected. P45s and P60s will also include a new LPT field.
We will be releasing an upgrade in June to handle all of the above.
As with all other statutory deductions, you will be obliged to deduct LPT in accordance with the P2C instruction from Revenue. If an employee has an issue, they must contact Revenue directly. You, as employer, have no discretion in the matter! Revenue can pursue you as employer for any amounts you fail to deduct, charge interest on late payment and fine you for non-compliance.