So you want to renew your Thesaurus or BrightPay payroll software, but unsure of which licence to choose. Hopefully the information below will guide you:
If in 2019, you purchased a Standard (one employer) licence, then your software will confirm which licence to order. But just as a reminder, here is the 2020 pricing structure:
To pay by card, please click here. Remember, click on the “Add to Order” box and then choose the correct licence you wish to purchase by clicking on the little arrow.
If in 2019, you purchased Standard and Additional licence(s) (2 employers or more), and you process all employers on one computer or laptop, then you must buy a Bureau licence for 2020. Please ignore the order form in your 2019 payroll, it automatically reverts to a standard licence.
With the Additional licence now gone, please don’t buy 2 or more standard licences, it won’t work!
There is only one exception to the above, if the 2nd or 3rd (or both) employers have 2 or less employees, this is considered a “Micro Employer”. You’ll be happy to know Micro Employers are free once you purchase a Standard licence for your 1st company and the additional companies never go over 2 employees within the same tax year.
If in 2019, you purchased a Bureau (multiple employers) licence, then your software will confirm which licence to order. But just as a reminder, here is the 2020 pricing structure:
All Connect licences will be registered through the 2020 software when released in mid-December. For further details on this new process and pricing structure, please click here.
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.
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.
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.
Revenue has released an information leaflet titled “PAYE Modernisation – Are You Ready?”. This kick-starts their awareness campaign for businesses to get ready for payroll changes called PAYE Modernisation or Real Time Reporting (RTR). Revenue outlines the steps that all employers need to take in order to ensure that their current records and obligations are up-to-date and correct.
PAYE Modernisation will change how employers report payroll information for their employees to Revenue. A file will need to be submitted (electronically) to Revenue, containing all details of employee payments. The contents are similar to the annual P35, however, this file will be submitted every pay period (weekly, monthly, fortnightly, etc.).
If you are an employer who uses payroll software, then the work involved to comply with PAYE Modernisation will be minimal. However, for smaller employers who do not use payroll software, the process of complying with PAYE Modernisation will be time-consuming and stressful. Currently, these employers make one manual submission to Revenue through their annual P35. With PAYE Modernisation, these employers will be required to make an employer submission to Revenue each pay period in real time. The employer submission will contain details comparable to what currently appears on an employer’s P35 return.
With PAYE Modernisation in mind, Revenue has contacted nearly 400 employers regarding their P35L returns for 2016. These returns contained employees who were never previously registered as working with the employer. This communication reminds those employers of their obligation to comply with PAYE regulations and requests those employers to submit a P46 for the non linked employees currently in their employment, the commencement date should be input as 1st January 2017 for employees that commenced employment before the current tax year. This action will then result in a new P2C (tax credit certificate) being issued for these employees.
Most small business ask if they can afford to employ someone. Simply, if you pay an employee the minimum wage of €9.25 per hour, it will actually cost you approximately €10. (This includes wage, public holiday, annual leave and PRSI). Additionally, if your accountant is processing your payroll, their charge may be around €3 per employee (weekly wage), you could save money by doing the payroll yourself.
Using BrightPay's features, you can smoothly process your payroll, it is a simple and powerful software. It’s designed with small to medium sized businesses, accountants and other payroll providers in mind. BrightPay has everything you need to manage payroll and it’s easy to learn and use. It caters for the processing of your payroll on a weekly, monthly, fortnightly or 4-weekly basis. More than one payment frequency can be processed at any time within your company’s dataset. For details on this feature, please click here.
If you are moving to BrightPay from another payroll software, we have online documentation to assist you. If you currently use Thesaurus Payroll Manager, our other payroll package, you may wish to change because of the additional features and functionalities BrightPay has to offer. Our step-by-step guide will assist you with this easy process.
With PAYE Modernisation / Real Time Reporting (RTR) arriving sooner than you think, if you process your payroll manually or if you are unhappy with your current system, there is no time like the present to change.
From January 2019, the option to provide annual reports to Revenue will no longer be available to employers. Instead, employers will be required to submit their payroll data on a “pay period” basis throughout the payroll year. This is known as PAYE modernisation. Employers will need to have certain facilities in place to process PAYE modernisation.
BrightPay is working closely with Revenue to ensure we have the functionality required to keep customers up-to-date with all the PAYE Modernisation legislative changes. With our UK version of BrightPay, we have acquired the knowledge and experience needed for a smooth transition in January 2019.
PAYE Modernisation is probably the biggest overhaul of the PAYE system since PAYE itself was introduced back in 1960. It will have wide ranging effects on all employers and on all bureau payroll providers. Join BrightPay plus guest speaker, Sinead Sweeney from Revenue for a free webinar to learn how PAYE Modernisation will affect your business.
Another legislative change arriving in less than a year is the General Data Protection Regulation (GDPR). This change is in relation to data protection, and it will substantially change how companies manage their data. In relation to payroll, this legislative change will mean all employers must ensure that their payroll information is securely stored within their payroll software. Unfortunately for many employers, using an Excel spreadsheet or another alternative manual method to store payroll information will no longer be compliant with GDPR regulations.
Our new add-on, BrightPay Connect provides an automated, secure and user-friendly way to save and restore payroll data to and from the cloud. This will enable employers to securely store their payroll information in the cloud, and as a result comply with their new data protection duties. BrightPay Connect also provides a web/mobile based self-service portal for both employers and their employees. Employees can access their private payroll data at any time in order to view payslips, request annual leave and update their personal details. Once leave is approved by the employer, it will then synchronise back into BrightPay payroll on the employer’s PC. This will keep your payroll data safe and streamline your payroll communications.
Payroll bureaus process large amounts of personal data, not least in relation to their customers, their customers’ employees, and their own employees. Consequently, the GDPR will impact most if not all areas of the business and the impact it will have cannot be overstated.
Following the announcement in last October’s Budget 2016, Revenue entered a consultation on the modernisation of the PAYE system.
Revenue’s proposal is that employers will report pay, tax and other deductions at the same time as they process and finalise their payroll. Similar to Real Time Information (RTI) in the UK, details of employees starting or leaving employment will be reported on the date of commencement/cessation and will eliminate the filing of P30, P35 and P45 forms.
Although, many businesses across Ireland have broadly welcomed the forthcoming introduction, some smaller businesses have expressed concern about the additional administrative burden due to poor internet access and the additional hours it may involve. Many businesses will be a risk as they have not invested in payroll software where they calculate their payroll manually.
Last April Revenue disclosed that it received 77 submissions to the consultation which represented a broad range of interests, both from large and small companies. For larger employers, the transition will be relatively straightforward, but Revenue is looking at alternatives to accommodate smaller employers, in particular, those who may still process their payroll manually.
IBEC state that while most of its members welcome the change, it is important that the system is flexible. A professional services group also warned that the work involved for employers to prepare for the implementation of PAYE modernisation / Real Time Reporting (RTR) should not be underestimated.
BrightPay already has the experience and expertise in developing the same real time features and functions for our UK customers. We are already collaborating with Revenue to ensure the transition for our customers to Real Time Reporting (RTR) / PAYE modernisation is smooth, user-friendly and ready for implementation in January 2019.
For further information, Revenue have provided the following link:
The following redundancy and retirement payments, although not completely tax exempt; do qualify for some relief.
• Wages / Salary in lieu of notice on retirement or redundancy.
• Payment paid by your employer which is additional to the statutory redundancy payment. This additional payment is known as an ex-gratia payment or golden handshake and is up to certain statutory limits.
If your employer provides all or part of the lump sum in another form e.g. car, holiday, etc. the cash value of this item is taxable.
If this lump sum is on the termination of a contract this payment is chargeable to tax in the normal way.
If an employer pays for the cost of retraining an employee as part of a redundancy package, up to €5000 of the retraining cost is exempt from tax. The following conditions apply:
• The employee has more than 2 years continuous full time service
• The retraining is completed within 6 months of the redundancy
• The retraining is designed to improve skills/knowledge to assist in obtaining employment or setting up a business
• The employee cannot take cash instead and must avail of the retraining.
The tax exemption will not apply to dependents, spouse or civil partner of the employer.