Irish Payroll Tax Tip - August 2013

EMPLOYERS, DID YOU KNOW THAT YOU CAN PROVIDE EMPLOYEES WITH EQUIPMENT SUCH AS COMPUTERS, PRINTERS, SCANNERS, FAX MACHINES, OFFICE FURNITURE ETC TO WORK FROM HOME WITHOUT A BENEFIT IN KIND CHARGE.

Where the provision of such equipment is for business use, a benefit in kind charge will not arise in respect of incidental private use.

eWorking:

eWorking is regarded as a method of working using information and communication technology in which work carried out is not bound to any particular location.

Ways of eWorking include:

• Working at home on a full time or part time basis

• Working some of the time at home and the remainder of the time in the office

• Working while on the move, with infrequent or occasional visits to the office

eWorking involves:

• Working for substantial periods outside the employer’s premises

• Logging onto the employer’s computer remotely

• Sending & receiving email, data or files remotely

• Developing ideas, products and services remotely

eWorkers will incur additional costs in the performance of their duties in their home e.g. electricity & heating costs. In addition to providing the necessary equipment an employer can pay these employees up to €3.20 per day without deducting PAYE, PRSI or USC. If the actual expense incurred by eWorking employees is higher the employer can reimburse the employee provided they have the backup documentation, records should always be kept.

Details can be found on Revenue’s website http://www.revenue.ie/en/tax/it/leaflets/it69.html

If you have any queries please email: [email protected]/[email protected]

Bright Contracts – Employment contracts and handbooks
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Posted byAudrey MooneyinPayroll Software

Payroll World Awards - Shortlist announcement

BrightPay has been shortlisted as a finalist in the 'payroll software product' category for the Payroll World Awards 2013! The full list of finalists will be publicised on the Payroll World Awards website, via email and in the magazine on the 30 August.

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byPaul ByrneinAwardsPayroll Software

Employer’s Checklist for NERA Inspections

Below you will find a handy employer’s checklist for a NERA (National Employment Rights Authority) inspection:

1. Do you have your employer’s registration number with the Revenue Commissioners?

2. Have you a list of all your employees together with their PPS numbers and addresses?

3. Have you the dates of commencement of employment for all employees? (And dates of termination if applicable?)

4. Have you given all your employees a written statement of terms and conditions of employment?

5. Have you the employees’ job classification?

6. Have you a record of their annual leave and public holidays taken by each employee?

7. Have you a record of hours worked for all employees?

8. Have you a record of all payroll details?

9. Can you prove that you provide your employees with a written statement of pay?

10. Have you a record or register of all employees under the age of 18?

11. Have you employment permits where applicable?

12. Have you filled out the template letter details that you will receive from NERA advising you of the inspection?

Bright Contracts – Employment contracts and handbooks
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Posted byAnn TigheinContract of employmentEmployment ContractNERAPayroll

Can Employees Be Paid Less Than The Minimum Wage?

The National Minimum Wage Act, 2000 states that the NMW is €8.65 per hour, there are some exceptions to this.

Where employees are under the age of 18 or within the first 2 years after the date of their first employment over the age of 18, the rate is €6.06 per hour

In the first 2 years after the date of first employment over the age of 18, the rate is €6.92 per hour in the first year and €7.79 per hour in the second year

Or

Where a trainee is doing a course which complies with S.I. No. 99 of 2000 for the 1st one third of the period the rate is €6.49 per hour, the 2nd one third the rate is €6.92 per hour, and the 3rd one third the rate is €7.79 per hour.

S.I. No 99 of 2000 is the Statutory Instrument which forms part of the National Minimum Wage Act, 2000

For the protection of both employees and employers a Contract of Employment, which is now a legal requirement, should be given to each employee as this will state clearly what is expected of both sides and will minimise or hopefully prevent issues arising that lead to ill feeling or disputes in the workplace.

Bright Contracts – Employment contracts and handbooks
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Posted byGerri McGinleyinContract of employmentEmployment ContractPayrollWages

LPT and the Revenue slam dunk

The introduction of Local Property Tax (LPT) in last year’s budget provoked much outrage and opposition. Marches, public meetings and demonstrations were staged in many parts of the country to protest against the new tax. One of the more popular suggestions was to boycott LPT but all of this noise and bluster was in vain as the measures introduced by the tacticians in Revenue were decisive in ensuring almost total compliance.

When planning the implementation of LPT, Revenue paid particular attention to the payment option “deduction at source”. Although only 5% of compliant taxpayers would eventually opt for this particular payment method, the crucial issue was that nearly all non-compliant taxpayers would be caught in this net. “Deduction at source” in the main refers to deduction from salaries or pensions.

The consultation process between Revenue, the payroll software companies and their representative body PSDA (Payroll Software Developers Association) was detailed and ensured that the mechanics of the LPT deduction in payroll was clear and simple. One of the main reasons that the start date was deferred until 1^st July was to ensure the readiness of both Revenue and the payroll software companies for the new deduction.

Just this week, Revenue is preparing to issue P2Cs to employers containing updated LPT amounts. Many of the amounts will be enforcement estimates. Employers will not be able to tell the difference between normal LPT and enforcement LPT. The employers receiving these P2Cs have no choice but to comply, otherwise they will become liable themselves in much the same way as if they failed to deduct PAYE or PRSI.

No matter how militant an employer might be against LPT, it is unlikely that they will risk becoming liable for it on behalf of their employees.

All of the anti LPT campaigners advocating non-compliance really had no chance from the outset when pitted against the Revenue strategists.

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byPaul ByrneinLPTPayroll Software

New Funding for Irish Employers

The Government has developed a Microfinance Fund to assist start-up and growing enterprises across all sectors with 10 or less employees. Loans of €25,000 are available to companies  considered to be commercially viable even though they may not meet the conventional risk criteria applied by commercial banks. Applicants will have to demonstrate that they have been refused credit by a commercial lending institution before their application is considered.

The new fund will generate €90 million in new lending to 5,500 micro enterprises which will support 7,700 new jobs. Borrowers will pay a commercial interest rate. For more information see www.microfinanceireland.ie.

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byGerri McGinleyinSMEStart-up

Have Revenue got it right at last or at least a bit fairer for all residents in Ireland?

A last ditch effort is being made by revenue to allow people to volunteer to pay their Local Property Tax and their outstanding Household charge before contacting employers and Pension providers to take the deductions at source!

The Office of the Revenue Commissioners has told more than 50,000 property owners that they will begin telling employers and pension providers to deduct the Local Property Tax from non-payers at source unless it is paid within seven days. In a statement, Revenue said the returns had to be filed online within one week.

It looks like there is no hiding place as Self-employed homeowners who fail to register have been warned they will be blocked from receiving a tax compliance certificate until they comply and pay. This in effect would mean some self employed people may not be able to work, take for example a taxi driver who is required to have a tax compliance Cert before A PSV licence will be issued .

Where the Household Charge for 2012 has not been paid or has been part paid by 1 July 2013 the arrears amount (including late payment penalties) will be increased to €200 and will be included as part of the LPT liability in respect of the property. In effect, the arrears of the Household Charge becomes an LPT charge and will be collected by Revenue. Unfortunately for people who did not pay their household charge a flat fee of €200 is now due along with the Property Tax Charge which will be deducted in the coming weeks at a time that people are already finding it difficult with extra costs as children return to school, college and the extra cost of the summer holidays in general . It's a hard one to call but looks like we will have no choice in the matter !

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byDenise CowleyinLPT

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
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Posted byJennie HusseyinPAYEPayrollPayroll Software

The Payroll Software Choice - Thesaurus Payroll Manager or BrightPay

In January 2013, we launched our new payroll software, BrightPay. The rollout of BrightPay was met with a very positive response, particularly from those users who switched to avail of its added functionality.

We understand the comfort of sticking with what you know. Therefore we will continue to offer Thesaurus Payroll Manager for the foreseeable future – it is not being phased out!

BrightPay is built using modern technology, offering some immediate benefits:

• The user interface is very clean, simple and fluid. With full control over every pixel on the screen, we have put extra attention into how it looks and feels. BrightPay optimally fills your screen no matter what size display you use. All in all, it makes for a much better experience.
• By re-architecting the software from the ground up, we were able to design it with many advanced payroll features in mind, including:
  • The ability to roll back one or more employees to any period, from any period.
  • Very flexible reporting that allows you to build the exact report you want.
  • Live payroll calculation previews which update as you type.
  • The ability to add unlimited payments, rates, additions, deductions, BIK, etc. on a payslip.
  • An interactive calendar for entering annual leave, sick leave, parenting leave, etc.
  • Support for employees in multiple departments.
  • Support for opening multiple employer files simultaneously.
  • Future-proof for more upcoming features and integrations.

We encourage you to download BrightPay and have a look. If you wish to switch from Thesaurus Payroll Manager to BrightPay we would advise doing so at the start of a tax year, as it allows for an easier transition (with full import support) than a mid-year switch.

Remember if you hold a Thesaurus Payroll Manager licence you can avail of a BrightPay licence for the same tax year free of charge.

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byPaul ByrneinPayroll Software

Foreign Currency Transactions - an area where you could save money

If you are paying any of your employees (or suppliers) in sterling or another non-euro currency, then you are probably experiencing higher banking fees and less competitive exchange rates than you should be. This is an area where you can reduce costs if you investigate alternative options to the conventional bank plus gain time with faster transfer options.

One alternative provider to your bank is TransferMate, who offer an impressive fast, efficient and cost effective service. We have been highly impressed with their service.  Estimate the savings you can make by using their “savings calculator” at www.transfermate.com.

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byPaul ByrneinBookkeeping