Jul 2013
29
2013 SFA Awards
We told you in December how, much to our delight, we had been shortlisted as a finalist in the 2013 SFA Awards, “Innovator of the Year” category directly resulting from our innovation in software development. This was in no small part attributable to our new dynamic software, BrightPay and Bright Contracts.
The final winner of the category was Megazyme, who were also announced as the overall winner of the awards.
Megazyme is a biotechnology company which employs 34 people and is involved in the development of analytical test kits and reagents for the agricultural, food, wine, dairy and biotechnology industries.
We extend our congratulations and good wishes for their continued success.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
29
Recent Customer Survey
We are constantly working towards improving the entire customer experience from customer support to improved functionality of the software. We would like to thank you for the time taken to complete our online survey and we will use your feedback to improve our service to you.
An iPad mini was up for grabs for taking part and the winner of this was Margaret Sullivan of Shellfish De La Mer Ltd.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
29
Real Time Information (RTI) - the UK experience so far
From April 2013, the UK has experienced a major change in the way employers report PAYE to HMRC. Employers now report their payroll information to HMRC in real time, on or before every payday. This is akin to a P35 being submitted weekly, fortnightly or monthly by UK employers .
Having such up to date information means that HMRC can issue accurate and timely instructions to employers thereby ensuring that an employee’s tax position at any time is correct i.e. there are less under or overpayments of tax. It will also help ensure the success of the new universal credit system whereby six working-age benefits will be merged into one.
There has been a number of teething problems with the new system, which is only to be expected given the scale of the change but various actions taken by HMRC prior to the live date have ensured that the transition has gone relatively smoothly. These actions included a pilot program, consultations with employer groups, consultations with software companies, various workshops and an overall general helpfulness on the part of the relevant HMRC staff.
It is understood that the Irish Revenue is a very interested spectator!
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
29
SEPA - an update
The latest version of Thesaurus Payroll Manager (2013.2.0 onwards) allows you to prepare SEPA compliant credit transfer files if you bank with AIB or DanskeBank.
From a payroll prospective, it is important to note that, at present, SEPA is really only beneficial to you if any of your employees wish to have their wages paid directly into a euro bank account in another EU state. Otherwise, the only benefit to you is being an early adopter and knowing that this is one less thing you will need to do next year.
If your bank requires a SEPA format credit transfer file for the payment of wages then you can use the SEPA feature within Thesaurus Payroll. This operates seamlessly, converting each employees bank details into BIC and IBAN formats for all domestic payments. In short, you need only obtain BIC and IBAN details for those employees who require payment into a euro bank account in another EU state.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
29
2014 Budget date
The Minister for Finance, Michael Noonan, has confirmed that preparations have already commenced for Budget 2014. Delivery date of the Budget has been brought forward to Tuesday 15th October 2013.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
29
Local Property Tax - now a part of the Irish taxation landscape
LPT deductions at source (i.e. from payroll) became effective from 1st July 2013. The LPT deduction is advised to the employer by Revenue only and should not be implemented or amended under any other circumstances (e.g. by employee request).
The “Acorn to Oak Communications Plc -v- An Taoiseach, An Tánaiste and 48 Others” case was heard in the High Court last week and the case was dismissed. As far as we are aware, this ends the last legal challenge to the new tax.
Revenue will advise employers to make this deduction by the inclusion of an LPT field on the employee’s tax credit certificate issued to the employer (P2C). The deduction is only made in the circumstance that the employee has elected with Revenue to have the tax deducted from their salary or if Revenue are imposing the deduction, therefore employers will only make the deduction from some employees if not all.
Employers should not deviate from Revenue instructions. All employee queries relating to any LPT deduction or amendment should be directed to Revenue.
The latest versions of Thesaurus Payroll Manager (2013.2.0 upwards) automatically update employee records to implement LPT deductions, where applicable, once the latest P2Cs have been imported. All employee statements of earnings; Payslips, email payslips, P45, P60, will reflect LPT deductions made by employers on the employees behalf.
It is important that employers import the latest P2C file available to them from their ROS account in order to update employee details for such amendments.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
27
PAYROLL TAX TIP - JULY 2013
EMPLOYERS DID YOU KNOW YOU CAN PROVIDE YOUR EMPLOYEES WITH A SMALL BENEFIT TAX FREE?
Revenue Commissioner’s Approved Small Benefit Exemption Scheme:
Employers can provide employees with a small benefit (that is a benefit not exceeding €250); 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 €250 the full value of the benefit is subject to PAYE, USC & PRSI
The small benefit is traditionally given as a voucher, as mentioned above only one such benefit can be given to an employee in one tax year. If for example an employee receives a €150 voucher in January and a €100 voucher in June only the €150 January voucher will qualify for exemption and the €100 voucher given in June will be subject to PAYE, USC & PRSI.
Where a benefit exceeds the value of €250 the full value is subject to PAYE, USC & PRSI. For example if a €260 voucher is given to an employee the full value should be included on payroll as a benefit in kind and therefore subjected to PAYE, USC & PRSI.
Any changes to the scheme will be included in the help file within Thesaurus Payroll Manager and also on the online BrightPay help file http://www.brightpay.ie/docs/2013/benefit-in-kind/one-off-benefits/
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
26
Maternity Benefit and issues with P2Cs!
Maternity Benefit is taxable in Ireland since 1st July 2013, but remains exempt from PRSI and USC. Adoptive Benefit and Health and Safety Benefit are also taxable since 1st July 2013.
Revenue has advised that the employee’s tax credit certificate (P2C) will issue on the Week 1 basis when Revenue receives details of the payments from the DSP.
However it would seem that in some situations P2Cs have issued incorrectly on the cumulative basis. Employers should check before importing P2Cs from ROS to ensure that this does not occur. The impact from an employees point of view is that they would possibly end up owing money to revenue as the credits and SCOP would be lower that the original amounts put in at the beginning of the tax year and because the cert has been issued on a cumulative cert it would look for the extra tax as soon as the employee is due payment again . Its bad enough that women have to pay tax on their maternity payment without ending up with a tax bill in error aswell !
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
25
Holiday Entitlement for Employees with Flexible Contracts
With the onset of the recession more employees are working part-time or on “zero hour” contracts.
This means that the employee is available to work when needed but does not have a specified number of hours guaranteed. The employee could have no work in one particular pay period but work full time the next pay period. These contracts are more usual in the hospitality and retail industries.
Employers often find it difficult to calculate holiday entitlements in these circumstances.
Thesaurus Software makes this task simple by incorporating a holiday calculator within the payroll itself which looks at the hours worked and calculates the holiday entitlement based on that. It also includes formation from the Organisation of Working Time Act and also other helpful guides dealing with different aspects of employment.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
23
BrightPay supporting Barretstown
Congratulations to our BrightPay team members, Denise and Caroline, on their completion of the PowerFit spinathon in aid of Barretstown.
Thesaurus Software is a strong advocate of Barretstown who offer an invaluable service to society rebuilding the lives of seriously ill children and their families.
We at Thesaurus Software recognise the hard work of all charities and the current difficulties they face in meeting their challenges, to that end we offer all registered charities a free standard payroll software license and customer support on an ongoing basis. Click here for our terms and conditions.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
