SEPA Deadline extended 6 months

The European Commission has issued a six-month grace period with regard to the upcoming Single Euro Payments Area system, beyond the Feb 1 deadline.

While it technically remains in place, the update means firms not in full compliance by the start of next month won’t suffer from their payments systems being automatically shut down and leaving them unable to pay staff or suppliers.

SEPA is being introduced by the commission to improve domestic and cross-border payment efficiency within the EU. Until a few days ago, non-compliant firms were facing a countdown to their credit transfers and direct debt facilities ceasing to function.

“An efficient single market needs an efficient SEPA. The entire payments chain — consumers, banks, and businesses — will benefit from SEPA and its cheaper and faster payments,” said Michel Barnier, the internal market and services commissioner.

“Cross-border payments are no longer exceptional events which is why an efficient cross-border regime is needed.”

He noted that migration rates for credit transfers and direct debits are not yet high enough to ensure a smooth transition to SEPA by the beginning of next month. He stressed that while existing payment systems will be accepted for another six months, the start of February remains the preferred migration deadline.

“I have warned, many times, that migration was happening too slowly and call once more on member states to fully assume their responsibilities and accelerate and intensify efforts to migrate to SEPA so that all can enjoy its benefits. The transition period will not be extended after August,” he added.

A recent survey by ISME showed that only 22% of small firms in Ireland were SEPA-compliant in the run-up to the end of 2013.

Posted byJennie HusseyinPayroll SoftwareSEPA

Cheque no more

The National Payment Plan (NPP), announced by Finance Minister Noonan in April, aims to reduce cheque usage in Ireland to EU levels by 2015, a reduction of nearly 66%.

Cheques would be classed as being one of the more expensive methods of payment, as each bank has their own individual processing charge for cheques, up to .30c each and then there is the compulsory Government Stamp Duty of .50c on each cheque also. So before the cheque is even written, it has cost the issuer upwards of .65c.

In the world of payroll, cheques are not very common, for cost reasons more than anything but also with the increase and popularity of electronic pay systems like online banking and credit transfer, writing cheques is more cumbersome and timely.

With changing consumer habits; the Single European Payment Area (SEPA) enforcement, credit transfer payment methods, and a government drive to cut costs by implementing the National Payment Plan, does this mean cheque books will soon be consigned to the history books??

To read more about the NPP, please check out; http://www.centralbank.ie/paycurr/paysys/documents/national%20payments%20plan%20-%20final%20version.pdf

Posted byJennie HusseyinPayroll SoftwareSEPA

New Layout for Irish P30 & P35 returns

With the recent introduction of the Local Property Tax, the helpline at Thesaurus Software HQ has been busy answering queries relating to it.

One of those queries has been to do with the filing of the monthly/quarterly P30.

If an employer, registered with ROS, has been creating the P30 on the Thesaurus Payroll Manager and then uploading it to ROS, there has not been any issue. However an employer trying to submit an online P30 on ROS itself is running into issues arising from where to enter the LPT.

The P30 had been showing fields for the PAYE & USC and then also for PRSI but nowhere was it showing a field for the LPT.

Revenue rectified this problem recently by changing the format of the online P30 and P35 so that the LPT and the USC fields are now separate from the PAYE.

Please see Revenue e-brief 35/13 for more information - http://www.revenue.ie/en/practitioner/ebrief/2013/no-352013.html

Posted byJennie HusseyinLPTPayroll Software

Bike to Work scheme - an incentive that works!

Cycling has become one of the biggest growing trends in Ireland when it comes to commuting to and from work and also exercising.

It is a prime example of how well an incentive scheme can work, as the bike to work scheme has transformed cycling in Ireland.

As we all know, cycling is a great form of exercise and by cycling to work, you'll make sure you stay active and get good exercise every day without using up any more of your valuable time.

The bike to work initiative gives you the opportunity to sacrifice part of your salary in return for a bicycle and/or accessories. Under the scheme you don’t pay income tax, PRSI or Universal Social Charge of the price of the bicycle and/or accessories so you can save between 31% and 52% on the normal price (depending on your marginal tax rate).

Participating in the bike to work scheme couldn't be easier;

The employer simply pays for the bike and equipment up to the value of €1,000, and off you go. Your Employer will inform you how the payment will work exactly, whether they buy the bike outright or it operates under a "salary sacrifice" arrangement, but either way you save on tax! Simply set up an Allowable Deduction on Thesaurus Payroll Manager / Bright Pay to accommodate for the salary sacrifice.

The scheme is flexible in so far as your employer doesn't have to specifically notify the Revenue Commissioners that you're availing of the scheme and there are no Government forms to fill out. However, your employer does have to maintain the normal records such as invoices and payment details associated with buying the bike.

Introduced on 1st January 2009, this tax incentive scheme was designed to encourage more people to get on their bikes and cycle to work. And given the obvious rise of the number of cyclists on our roads, it’s easy to see that this incentive is definitely working.

You can find out more at http://www.revenue.ie/en/tax/it/leaflets/benefit-in-kind/faqs/cycle-work.html#cycle1

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byJennie HusseyinPAYEPayrollPayroll Software