Pension Related Deduction (PRD)

Pension Related Deduction (PRD)

With effect from 01st March 2009 the Pension Related Deduction must be applied to the remuneration of public servants.

Who does the Pension Related Deduction apply to?

The Pension Related Deduction applies to public servants who:

(i) Are members of a public pension scheme

(ii) Are entitled to benefit under such a scheme

or

(iii) Receive a payment in lieu of membership in such a scheme

What pay does the Pension Related Deduction apply to?

The Pension Related Deduction applies to all Schedule E remuneration covering all elements of gross pay, including overtime, arrears, all taxable allowances, Notional Pay on Benefits and taxable portions of Illness Benefit.

PRSI Relief on Pension Related Deduction Abolished

With effect from 1st January 2011 Gross income before the PRD deduction will be subject to PRSI.

PRD RATES AND THRESHOLDS 2016

The exemption threshold has increased to €24,750 from January 2016 and to €28,750 from September 2016. To over come issues caused by cumulative changes mid-year, the increase from January 2016 will be a blended threshold of €26,083.

Issuing a P45 to an Employee

No changes are required to the P45 issued to employees who leave employment from whom a Pension Related Deduction has been deducted, however, a statement of Pension Related Deductions should be issued with the P45 to the employee.

Issuing P45 to an Employee with a Pension Related Deduction within two years of commencement

Where an employee leaves employment within two years and neither transfers to another public service employment nor retains any pension benefits they are due a refund of both the pension contributions and the Pension Related Deduction. Per the Department of Finance this refund is to be calculated manually outside of the payroll software.

SETTING UP THE PENSION RELATED DEDUCTION WITHIN BRIGHTPAY

Go to Employees > Select Employee to whom the deduction will apply > Revenue Details > Select the appropriate PRD calculation method

Payslips

The Pension Related Deduction will display separately on the Employees Payslip as "PRD”

Need help? Support is available at 01 8352074 or [email protected].

Installing BrightPay

Installing the software on to your PC Setting Up BrightPay for Multiple Users

2016 Budget - Employer Summary Payroll Calendar Minimum Wage Pension Related Deduction (PRD)Ordering for Next Year

Getting Started

Introduction to BrightPay Setting up an employer and its employees using a Revenue P2C File

Importing from Previous Year

Importing from BrightPay 2015 Importing from Thesaurus Payroll Manager

Switching from Thesaurus Payroll Manager to BrightPay mid year Importing employee data from another payroll package

Employee Data that can be Imported into BrightPay Migrating from SAGE Micropay to BrightPay

Adding a New Company Additional Employer Information Setup Initial Rates of pay Adding/ Amending Hourly Rates Adding/ Amending Daily Rates Adding/ Amending Addition Types Adding/ Amending Deduction Types Adding/ Amending Pension Schemes Adding/ Amending Savings Schemes Adding/ Amending Bank Accounts Adding/ Amending Departments

Exporting a P2C file from ROS Importing a P2C file Personal Employment Payment Revenue Details HR CSO

Payroll Deductions

Universal Social Charge Universal Social Charge - Calculations USC Exempt Status v USC Exempt Income PAYE - Pay As You Earn Cumulative Basis/Week 1 Basis/Temporary Basis Emergency Tax Basis Local Property Tax (LPT)PRSI PRSI - 2016 Tables

Processing Weekly Payroll Processing Fortnightly Payroll Processing Monthly Payroll Processing 4-Weekly Payroll Net to Gross Payments Entering Pension Deductions Allocating An Employee's Pay across Departments Importing Pay Data from a CSV File Finalising Payslips Printing Payslips Emailing Payslips Exporting Payslips Paying Employees

Mid-year Starters

Setting up a new employee mid-year Preparing a P45 Part 3 for ROS Preparing a P46 for ROS Submitting a P46/P45 Part 3 to ROS

Issuing a P45 Printing a P45 Reversing a P45 Submitting a P45 to ROS

Adding/ Amending Pension Schemes Entering Normal Pension Deductions Entering a CWPS Pension Entering a NECI Pension Normal Pensions Report CWPS & NECI Reports

Illness Benefit

Illness Benefit - General Employer does not pay employee while out sick Employer pays employee while out sick but employee retains the illness benefit Employer pays employee while out sick and receives the illness benefit Making adjustments to previously paid illness benefit

Benefit in Kind

Benefit in Kind - General Information Vehicles Loans Accommodation Medical Insurance - Annual Medical Insurance - One-Off Share Based Remuneration Annual Benefits One-Off Benefits

Parenting Leave

Adoptive Leave & Pay Maternity Leave & Pay Paternity Leave and Pay

Holiday Entitlements - Useful Information Public Holiday Entitlements - Useful Information Processing Holiday Pay

Employee Calendar Making Corrections to Payroll

Re-defining Schedule of Periods Re-opening Payslips

Monthly P30 Return Quarterly P30 Return P30 ROS File

Creating a New Report Favourite Reports Audit Trail Report CWPS & NECI Reports Daily Pay Report DSP Benefits Report Hourly Pay Report Notional Pay Report Payroll Summary Report Pensions Report

Backing Up & Restoring Data Files

Backing Up Your Payroll Data Restoring a Payroll Data File

Preparing a P35 ROS File Submitting a P35 to ROS P60s Week 53 Medical Insurance Eligible for Tax Relief

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EHECS (EARNINGS, HOURS & EMPLOYMENT COSTS SURVEY)