Feb 2014
28
Payroll Tip - February 2014
• The easiest way for employers to communicate with Revenue is via ROS (Revenue On-Line Service). If you are not already registered for ROS, information is available at http://www.ros.ie/PublisherServlet/info/setupnewcust. One benefit is that employers get extra time to file returns and make payments which can be beneficial.
• When a new employee starts employment, it is important that the employer registers them with Revenue as soon as possible.
• If it is the employee’s first employment in Ireland, you should ensure the employee has a PPSN (Personal Public Service Number). If the employee does not have a PPSN, the employee should apply for a PPSN through the Department of Social Protection. Once the PPSN is received, a Form 12A should be completed and sent to Revenue to apply for a Certificate of Tax Credits and Standard Rate Cut-Off Point.
• If a new employee gives you a P45 from a previous employer, you should register the employee by uploading the P45 Part 3 to ROS. The P45 Part 3 for uploading to ROS can be created using Thesaurus Payroll Manager or BrightPay.
• If a new employee hasn’t come from previous employment you should register the employee by uploading a P46 to ROS. The P46 for uploading to ROS can be created using Thesaurus Payroll Manager or BrightPay.
• If an employee has a second job, they should contact Revenue directly so that their allowances can be split between the two employments.
Feb 2014
25
National Employment Week - Improving employment for everyone
The 4th National Employment Week takes place this week, 24th to 28th February. National Employment Week was established as a forum focusing on social and economic issues surrounding employment in Ireland. As the country endeavours to reduce the number of people out of work and move towards economic recovery, National Employment Week puts employment at the centre of the agenda.
The week offers the opportunity to employers, managers and HR professionals to share opinions and experience on employment issues and set the national employment agenda.
Although supported by Government, with both the Taoiseach and Minister for Social Protection, Joan Burton attending several events throughout the week, there is very much a commercial aspect to the week. The week itself has strong, reputable sponsorship with The Irish Times, The Chartered Institute of Personnel and Development (CIPD), Sigmar Recruitment and Monster.ie all involved. In addition all events, seminars and focus groups alike, are attended by professionals representing employers of all sizes and types across Ireland.
This year the focus will be on the following topics:
• Digital Innovation and the Drive for Talent
• Significance of Company Culture
• Emerging Talent
• The importance of investing in the future
• Mental Health & Employment
The highlight of the week is the National Employment Summit which takes place on Wednesday in the Convention Centre, Dublin. This is a free event and anyone can attend to hear practical measures that can be taken back to businesses.
National Employment Week is striving to achieve a better employment market for everyone. It is heartwarming to see such positive steps being taken. If you don’t make any of the events this year, mark it in your diary for next year. Further information can be found at http://www.nationalemploymentweek.ie/.
Feb 2014
21
Phasing out of “W” PPS numbers
The Department of Social Protection is phasing out PPS numbers which have a second letter - W - at the end. Such numbers were allocated to females in the past.
Certain females who registered for PPS numbers prior to 2000 were allocated the same numbers as their husbands, with the letter "W" included at the end. These numbers are being phased out in certain circumstances. For example, in instances where a husband is deceased, a divorce or separation has occurred, or where there is a pre-1979 consideration, new numbers must be provided.
The employee should contact the DSP's Client Identity Services at the following address;
Client Identity Services
Social Welfare Services Office
Shannon Lodge
Carrick on Shannon
Co Leitrim.
Phone (071) 9672500
to check whether they have already been issued with a replacement PPS number and, if not, to arrange a new PPS number.
When those affected receive new numbers, they are required to download and complete a form and return it to the Revenue Commissioners in order to notify them that their numbers have been changed.
To keep up with the latest payroll news, check out our new Bright website. There, you'll be able to register for any of our upcoming payroll webinars and download our payroll guides.
Feb 2014
20
Revenue gives deadline of 31st March for property tax, household charge compliance
The Revenue Commissioners are to give individuals who have not paid the property tax or household charge until the end of March to comply with the levies.
The tax authority said there is now a six-week window for people to pay the outstanding amounts before interest and penalties will apply.
People who have undervalued their property or claimed an exemption which they are not entitled to also have to regularise their position by 31 March.
Revenue says it will begin its compliance campaign from the beginning of April.
People who have not complied by 31 March will have interest back dated to 1 July 2013. It will charge tax of 8% per annum.
"Penalties will apply to those who seriously do not comply with us," said the Revenue's project manager Vivienne Dempsey.
She added that 460,000 properties had not paid the household charge. Some of these may be entitled to an exemption.
However, 242,000 properties have workers in the properties who will now be subject to mandatory deductions from their pay at source.
If you have not yet paid your LPT, you can contact Revenue at 1890 200 255 to arrange to do so. If you undervalued your property, you can self-correct this valuation and pay the additional liability by March 31st by using its online service.
Feb 2014
14
What might be coming down the tracks for Irish employers
Here is an article that recently appeared in the online version of Business & Finance and that should be of interest to all Irish employers.
http://businessandfinance.com/whats-coming-down-the-track-for-irish-employers/?ref
Feb 2014
5
Free business event for Irish SMEs - taking care of business
Very few things in life are free so why not avail of a free event to help your business. After a successful event in Dublin in October 2013, further events have been scheduled. If you own or manage a small business or are thinking of starting your own business you should visit www.takingcareofbusiness.ie to register as places are limited.
This is an initiative organized by the Department of Jobs, Enterprise & Innovation.
The events have been designed to help small and start-up businesses understand and benefit from the services provided by a range of State Bodies
Attendees will:
• Meet with representatives from a number of State Offices & Agencies
• Get information & advice on running your business
• Find out ways to save your business money
• Receive support to help you in your business
These half-day events will take place in March and April. They will be held in Limerick, Galway & Cork.
Full details including the agenda, dates and times can be found on the flyer
https://www.takingcareofbusiness.ie/TCOBRegionalFlyer2014.pdf
Jan 2014
28
Payroll Tax Tip – January 2014
Employers don’t miss your P35 deadline!!!!
The deadline for the 2013 P35 is 15th of February 2014. The extended date for ROS customers who pay & file on line is 23rd February 2014.
Important Points:
- All persons in your employment during the tax year, including those who left, must be included on the P35
- Where an employee’s PPS number is not known, it is important to include the employee’s address and date of birth
- Care should be taken to ensure PPS numbers are correct
- Only one entry should be made for each employee
There are severe penalties for failure to lodge end of year returns within the time provided. A delay in lodging the P35 return may cause employees unnecessary difficulty and delay when claiming Social Welfare benefits.
Form P60s
Between 1st of January and 15th of February, employers must give their employees a P60, showing Total Pay, Tax and PRSI contributions etc for the year ended 31st of December.
All employees in your employment on 31st of December should be provided with a P60. If an employee ceases employment on 31st December they should be given a form P45 and a form P60.
Revenue no longer issue P60 stationery, employers can print P60s for their employees from Thesaurus Payroll Manager/BrightPay onto blank stationery.
P35 FAQs can be found on Revenue’s website
Jan 2014
22
Will Ireland ever follow the UK lead and adopt auto enrolment?
Thankfully, we are living longer! This, however, presents a huge challenge for any country’s retirement strategy. Back in 1950, there were 7.2 people aged 20–64 for every person of 65 or over in the OECD countries. This is projected to reduce to 1.8 by 2050. The math is stark. To fund a state pension which pays modern day equivalents to people retiring at 65 will soon become an impossible task. Apart from increasing the already huge tax burden to pay for pensions, there are really only two ways of addressing the problem. One, the retirement age needs to increase and, two, people will need to have private pensions or other incomes to supplement their state pension.
Auto Enrolment addresses the latter. It imposes a legal obligation on employers to enrol their employees in pension schemes and to contribute to these pensions. A deduction is made from the employee’s pay plus the employer contributes as well. Auto Enrolment began in the UK for very large employers in 2012 and is being rolled out to include all employers by 2017. The combined minimum deduction and contribution of 2% is designed to ease employees and employers into the concept but this combined level rises to 8% by 2018.
It should be noted that employee participation is optional. The employer must enrol them but they may subsequently opt out. Therefore, employees who feel that they are otherwise covered (e.g. through rental property and/or other investments) do not have to partake in Auto Enrolment.
The various rules surrounding Auto Enrolment and the structures that need to be put in place are numerous and represent a major undertaking for government, employers and pension companies.
Auto Enrolment (or similar) is an absolute necessity and it is somewhat surprising that Irish plans in this regard are not more advanced.
Jan 2014
20
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.
Jan 2014
8
BrightPay campaign to support “Fix Crumlin Children’s Hospital”
Click to purchase and we donate!
For every 2014 BrightPay license sold for just €149 (pus Vat) BrightPay will make a €10 donation to help fix the children’s wards at Crumlin Children’s Hospital.
