Oct 2018
30
Are you manually processing payroll? It’s time to modernise your payroll processing.
With PAYE Modernisation just around the corner, it is now essential for all businesses to start planning for the updated PAYE system. Employers should be aware of how the change will affect them in order to ensure they can cater to the demands of the modernised system.
Worryingly, a significant number of employers are still processing their payroll using a manual or spreadsheet system. A manual approach might seem like the most cost-effective option but can result in errors. Inaccurate payroll processing could potentially amount to penalties from Revenue.
For the significant number of employers processing payroll manually on a yearly submission basis, this will no longer be acceptable by Revenue. The last yearly submission will need to be made in January 2019 for the 2018 tax year. From 2019 onwards, the yearly submission to Revenue will cease to exist. In its place, employers will be required to calculate and report their employee’s pay and deduction information as they are being paid.
Payroll calculations are complex and change regularly. A manual system does not have a built-in process to catch mistakes or notify employers of any payroll changes. Manual records are also harder to maintain and store securely (a GDPR requirement).
Free Webinars for Manual Payroll Processors:
We are holding detailed webinars exclusively for payroll processors still using manual or spreadsheet systems. The webinars will dive into the pros and cons of having a manual system in place.
We will take you through your essential PAYE Modernisation checklist making it feasible to streamline the PAYE Modernisation process. Our free webinars include a guest presentation from Sinead Sweeney, the PAYE Modernisation Change Manager for the Revenue Commissioners.
Agenda
- An overview of PAYE Modernisation
- Elimination of the P forms - P30, P60 P35, P46 and P45 forms
- Manually process PAYE Modernisation and the limitations
- How PAYE Modernisation will affect employees
- Importance of securely storing your payroll files
- 10 Step Checklist
- How we are helping small employers
- Q&A
Related Articles:
- PAYE Modernisation for Payroll Bureaus- The ins and outs of increasing fees without losing clients
- How to Master PAYE Modernisation
- The Existing PAYE System VS PAYE Modernisation: Which is really better?
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Oct 2018
23
PAYE Modernisation for Payroll Bureaus- The ins & outs of increasing fees without losing clients
PAYE Modernisation for Payroll Bureaus - The ins & outs of increasing fees without losing clients
PAYE Modernisation is the most significant change ever to happen to the Irish PAYE system and introduces a new and improved way of reporting to Revenue. Employers will need to submit information to Revenue in real time, every time an employee is paid, and as a result, the PAYE system will be more efficient. All employers with at least one employee will need to comply with the new system by law.
PAYE Modernisation does not change the way PAYE is calculated; it just means that employers will need to make more regular submissions to Revenue each time the payroll is processed. Every time you pay your employees, a file known as a Payroll Submission Request (PSR) will need to be submitted to Revenue.
PAYE Modernisation as a profitable service?
For employers who submit a yearly P35 return or those with little payroll experience, the changes to the payroll legislation will be complex and hard to understand. If your clients outsource their payroll processing to you, they will expect you to deal with PAYE Modernisation on their behalf. It is important that you work with your clients to make sure they are fully ready for PAYE Modernisation and understand the additional work required on your behalf.
The new PAYE legislation will be a big change for all employers - it will abolish the once a year P35 submission system, forcing them to submit their payroll information to Revenue each pay period. With the added workload required to process PAYE Modernisation, it is inevitable that these types of clients should expect to pay more for the extra work provided. Payroll bureaus will now need to prepare, process, finalise the payroll and submit the information to Revenue each and every pay period. PAYE Modernisation is the perfect platform to re-align your payroll services as a viable growth area of your accounting firm or payroll bureau.
This guide will examine practical tips to ensure PAYE Modernisation will be a smooth and profitable process. Be ready to offer PAYE Modernisation as a service that your clients will be happy to pay for.
- Planning
- Clients processing payroll manually
- Communicating with Payroll Clients
- Opportunity or Threat?
- Charging for PAYE Modernisation
- Integrated Payroll Software
- Increase Profits
- PAYE Modernisation Training
- GDPR & Self-Service Portals
Related Articles:
- How to Master PAYE Modernisation
- The Existing PAYE System VS PAYE Modernisation: Which is really better?
- The Death of PAYE ‘P Forms’
- How will PAYE Modernisation impact on your payroll?
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Oct 2018
12
How to Master PAYE Modernisation
In January 2019 Revenue will begin to enforce a new Pay As You Earn system that will introduce real-time reporting of employee’s tax and other deductions directly to Revenue every time an employee is paid. This new system will be known as PAYE Modernisation.
Although the new system is expected to cause a lot of confusion, particularly for small and micro employers, PAYE Modernisation will seek to provide a much more accurate solution to the current PAYE system and ultimately benefit all employers and employees.
For over two decades, Thesaurus payroll software has supported businesses both large and small to pay hundreds of thousands of employees every month. At Thesaurus and BrightPay we are working directly with Revenue to make sure we’re ready for PAYE Modernisation. Our aim is to ensure the new PAYE process is a seamless and smooth process for our users.
Our development team have already experienced what it is like to implement real time processing and reporting in the UK. Our understanding and knowledge coupled with the reliability and maturity of Thesaurus payroll software will guarantee a user-friendly PAYE Modernisation experience.
We understand how stressful this change is going to be for payroll professionals and as a result, to help you get it right, Thesaurus have teamed up with a Revenue representative to bring you a series of webinars where you’ll gain the knowledge needed to comply with and master the new PAYE changes. Places are limited - secure your place today.
PAYE Modernisation: Key facts you must know to ensure 100% compliance.
Agenda:
- An overview of PAYE Modernisation
- Recent updates and changes to PAYE Modernisation
- Can PAYE Modernisation be processed manually?
- Elimination of the P forms - P30, P60 P35, P46 and P45 forms
- Making corrections in real-time
- The role of payroll software
- How PAYE Modernisation will affect small employers
- The benefits of PAYE Modernisation for you
- 10 step Checklist to PAYE Modernisation
- How Thesaurus Payroll handles PAYE Modernisation
The Panel
Main presenter: Paul Byrne
Guest presenter: Sinead Sweeney
Guest presenter: Sandra Clarke
More information | Secure your place
Read More Like This:
PAYE Modernisation: Meet the experts
PAYE Modernisation: What you need to know
GDPR and Payroll Processing. Do I need consent from my client's employees?
Thesaurus & BrightPay Newsletter - Are you missing out?
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Thesaurus Payroll Software | BrightPay Payroll Software
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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Oct 2018
8
BrightPay Customer Update: October 2018
Free PAYE Modernisation Training Webinar
We have teamed up with Revenue & IPASS to bring you free CPD accredited webinars to help you prepare for PAYE Modernisation. With just over two months before PAYE Modernisation takes effect, these webinars will discuss how PAYE Modernisation will affect payroll processing and what is expected from you going forward. Both webinars are CPD accredited and free to attend. Places are limited.
- 25th October - Guest Speaker: IPASS | Register here
- 7th November - Guest Speaker: Revenue | Register here
BrightPay wins ‘Payroll Software of the Year’
BrightPay was announced the winner of ‘Payroll Software of the Year’ at this year’s Software Excellence Awards. It’s a great achievement for BrightPay to win this prestigious award. The winner was decided by a public vote, whereby members are asked to rate the software systems they use to determine the best products on the market.
Extended Customer Support Hours
To assist our customers with the transition to PAYE Modernisation, our customer support will have extended and Saturday opening hours from Monday 17th December until Saturday 16th February including early mornings and evenings.
View opening hours | Contact support
Budget 2019 - Employer Payroll Focus
Budget 2019 was announced on Tuesday October 9th 2018 . This is a summary of the measures that will have a direct effect on employers with regards to payroll.
Switch to BrightPay Payroll and get a free licence worth €299
New payroll bureau customers can now get a BrightPay 2018 bureau licence for FREE when you switch and pre-order BrightPay 2019. Offer applies to new customers only who switch from a different payroll software provider to BrightPay. Free offer valid on BrightPay 2018 bureau licences only when you purchase BrightPay 2019.
Book a demo | Switch to BrightPay
PAYE Modernisation checklist to ensure 100% compliance
It is important that all employers understand the upcoming changes to the Irish PAYE system. PAYE Modernisation will affect all employers and it will be important to ensure 100% compliance to avoid penalties and fines. Find out the key factors you need to consider when preparing for its introduction with our PAYE Modernisation checklist.
BrightPay secures investment from Hg
We are very excited to announce that BrightPay has secured investment from Hg, a specialist technology investor. This partnership benefits BrightPay as we can access the experience and support of Hg and its network, whilst retaining voting control of the business. “It’s great to secure an investment from a firm who both knows our market and has the experience to help us develop the business.”
Did you miss it? Important information regarding PAYE Modernisation
We recently sent out an email to all customers regarding PAYE Modernisation detailing a number of things you need to be aware of or to check in advance of January. Please be assured that our 2019 software will fully cater for the new system and that we aim to make it as seamless as possible for you.
View email | Book PAYE Modernisation demo
BrightPay Connect: The perfect HR solution for your business
BrightPay Connect has built-in features giving employers an easy to use HR solution where employers can seamlessly manage employee leave and upload HR documents, such as contracts of employment. Employees can request leave through their employee portal or smartphone app. These features will automate and streamline many of the day-to-day HR functions that you deal with.
BrightPay Connect | HR Features
Are you part of an association that needs help with PAYE Modernisation?
We are working with a number of associations that are helping their members with PAYE Modernisation. We are offering a free partnership platform to Irish associations where we can provide free PAYE Modernisation training and free training on our payroll software products. Our partnership platforms enable us to offer association members introductory discounts.
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Oct 2018
2
Extended Customer Support Hours
To assist our customers with the transition to PAYE Modernisation, our customer support will have extended and Saturday opening hours from Monday 17th December until Saturday 16th February (excluding Christmas week).
We recently conducted a customer survey to determine when our customers are most likely to avail of extended hours. Based on the results of this survey, our opening hours for this period will be as follows:
- Monday to Thursday - 8 am to 7 pm
- Friday - 8 am to 6 pm
- Saturday - 9 am to 1 pm
Once live with our extended hours, we will continue to monitor demand for customer support and will change or extend hours if required. It is also important to note that we will not have a full complement of staff during these extended hours.
In addition to our telephone and email support, we will also have extensive on-screen and online support (including videos) to help you through all of the new features.
Our customer support team can be contacted at 01 8352074 or [email protected].
