Our Payroll end of year seminars are essential for all payroll operators, managers and HR staff.
Multiple changes to the operation and legislation occurred during 2011. Are you aware of these changes?
This Payroll annual Update Day will cover all changes announced during tax year 2011, including amendments to
PRSI and USC. We will discuss in depth what these changes mean to your end of year and will recommend
best practice to ensure compliance.
We will also cover in detail all Payroll related changes announced in Budget 2012. As you may be aware,
Revenue have provided advance notice of changes to the USC, from 1st January 2012 the USC will
be calculated on cumulative basis, as opposed to the current week 1. We expect this to be the first of many
amendments for 2012.
Don't leave it to chance, start 2012 on the right note.
Book one of our Payroll end of year seminars today, places are limited so book early!
Tuesday, November 8, 2011
Thursday, July 7, 2011
What is PAYE?
WHAT IS THE PAYE SYSTEM (PAY AS YOU EARN)
The PAYE system came into operation in October 1960 for the sole reason of easing the burden of tax collection and payment. (see our "Complete guide to PAYE & Payroll in Ireland")
The PAYE system is the method used by the Revenue Commissioners to collect the following based on an employee's income:
- Income Tax
- Universal Social Charge (Introduced in Tax Year 2011)
- PRSI (Pay Related Social Insurance)
Nearly all income is liable to tax. Tax on income earned from employment is deducted by the employer on behalf of the Irish Government. This is known as Pay As You Earn (PAYE). The amount of tax paid depends on
the amount of the income and on employees personal circumstances.
It is the employer's legal responsibility to record and deduct tax on all taxable income received by the employee.
Tax Year
The PAYE system operates for a period of 12 months from 1st January - 31 December.
Do you need payroll training? Book a Payroll Training Course or purchase a digital copy of our course notes
The PAYE system came into operation in October 1960 for the sole reason of easing the burden of tax collection and payment. (see our "Complete guide to PAYE & Payroll in Ireland")
The PAYE system is the method used by the Revenue Commissioners to collect the following based on an employee's income:
- Income Tax
- Universal Social Charge (Introduced in Tax Year 2011)
- PRSI (Pay Related Social Insurance)
Nearly all income is liable to tax. Tax on income earned from employment is deducted by the employer on behalf of the Irish Government. This is known as Pay As You Earn (PAYE). The amount of tax paid depends on
the amount of the income and on employees personal circumstances.
It is the employer's legal responsibility to record and deduct tax on all taxable income received by the employee.
Tax Year
The PAYE system operates for a period of 12 months from 1st January - 31 December.
Do you need payroll training? Book a Payroll Training Course or purchase a digital copy of our course notes
Friday, February 25, 2011
How long does maternity leave last in Ireland?
If you become pregnant while you are working in Ireland, you are entitled to take maternity leave.
Your entitlement to maternity leave lasts for 26 weeks, together with 16 weeks’ additional unpaid maternity leave.
Employers are not obliged to pay women on maternity leave. You may qualify for Maternity Benefit, which is a Department of Social Protection payment based on PRSI contributions. Maternity Benefit is not payable during the 16 weeks’ additional leave.
Click Here for more details on Maternity Leave
Your entitlement to maternity leave lasts for 26 weeks, together with 16 weeks’ additional unpaid maternity leave.
Employers are not obliged to pay women on maternity leave. You may qualify for Maternity Benefit, which is a Department of Social Protection payment based on PRSI contributions. Maternity Benefit is not payable during the 16 weeks’ additional leave.
Click Here for more details on Maternity Leave
Tuesday, February 8, 2011
Tax Refund Tips: Redundancy
Were you made redundant at any stage over the past 4 years. Over 90% of employees made redundant are
not aware they may have overpaid tax on their redundancy package, refund amounts depend greatly on how much you earned during that tax year, if you were unemployed for the remainder of the tax year in question, and whether or not you claimed all credits and allowances that were due.
Refund Process: You may claim directly from Revenue using their PAYE anytime service or by contacting your local tax office. Alternatively, we recommend using a third party to process all potential tax refunds due. Outscourcing this process is simple, cost effective and ensures your claims are correct and accurate. Visit Paylesstax.ie for more information.
not aware they may have overpaid tax on their redundancy package, refund amounts depend greatly on how much you earned during that tax year, if you were unemployed for the remainder of the tax year in question, and whether or not you claimed all credits and allowances that were due.
Refund Process: You may claim directly from Revenue using their PAYE anytime service or by contacting your local tax office. Alternatively, we recommend using a third party to process all potential tax refunds due. Outscourcing this process is simple, cost effective and ensures your claims are correct and accurate. Visit Paylesstax.ie for more information.
Thursday, February 3, 2011
Tax Refund Tips: Medical Expenses
If you have paid for medical expenses in Ireland or anywhere within the EU, you may be entitled to a partial tax refund.
Most medical expenses are covered, there are exeptions however such as routine eye checks and some dental procedures. For tax years 2009 & 2010, The full amount of your medical expenses can be claimed. Tax relief is granted @ the 20% tax rate, regardless of whether you are a higher or standard rate tax payer.
Refund Process: You may claim directly from Revenue using their PAYE anytime service or by contacting your local tax office. Alternatively, we recommend using a third party to process all potential tax refunds due. Outscourcing this process is simple, cost effective and ensures your claims are correct and accurate. Visit Paylesstax.ie for more information.
Most medical expenses are covered, there are exeptions however such as routine eye checks and some dental procedures. For tax years 2009 & 2010, The full amount of your medical expenses can be claimed. Tax relief is granted @ the 20% tax rate, regardless of whether you are a higher or standard rate tax payer.
Refund Process: You may claim directly from Revenue using their PAYE anytime service or by contacting your local tax office. Alternatively, we recommend using a third party to process all potential tax refunds due. Outscourcing this process is simple, cost effective and ensures your claims are correct and accurate. Visit Paylesstax.ie for more information.
Monday, January 31, 2011
New Minimum Wage and Existing Employees
Are you an existing employee on the old Minimum Wage rate? Has your employer attempted to lower your hourly rate from E8.65 to the new national minimum wage of E7.65?
In some cases your employment contract or terms of employment will say that you are paid at the
“prevailing National Minimum Wage hourly rate”. Where this is the case, an employer may reduce your
pay in line with the minimum wage rates. In other cases there may be a provision in the contract that
provides for a reduction in pay.
Where this is not the case, and you are on the previous minimum rate of €8.65 per hour, your employer
cannot reduce it without your agreement, as this would change the terms of your contract of employment.
Find out more on the National Employment Rights Authority Website.
Payroll
In some cases your employment contract or terms of employment will say that you are paid at the
“prevailing National Minimum Wage hourly rate”. Where this is the case, an employer may reduce your
pay in line with the minimum wage rates. In other cases there may be a provision in the contract that
provides for a reduction in pay.
Where this is not the case, and you are on the previous minimum rate of €8.65 per hour, your employer
cannot reduce it without your agreement, as this would change the terms of your contract of employment.
Find out more on the National Employment Rights Authority Website.
Payroll
Tuesday, January 25, 2011
Universal Social Charge Ammendments!
Government is planning to bring amendments to the Finance Bill relating to the universal social charge.
The proposal is to introduce a lower rate for those holding a medical card who are subject to the 7% rate. These will now see their rate lowered to 4%.
Self-employed people earning more than €100,000 will pay an extra 3% surcharge on any incomes above that amount. The Minister said this would mean such people would be back at the levels they were before the Budget.
The proposal is to introduce a lower rate for those holding a medical card who are subject to the 7% rate. These will now see their rate lowered to 4%.
Self-employed people earning more than €100,000 will pay an extra 3% surcharge on any incomes above that amount. The Minister said this would mean such people would be back at the levels they were before the Budget.
Tuesday, January 11, 2011
Know Your Rights: Privacy at work
You have the right to privacy at your workplace, but there are legitimate circumstances where your privacy may be limited by your employer. Your employer is obliged to make you aware of any infringements of your right to privacy, for example, within your terms of employment or in your staff handbook. Any encroachment on your right to privacy must be for a legitimate and reasonable purpose, be clearly explained and respect data protection law.
For example, an employer is entitled to use closed circuit television (CCTV) in the workplace. However, there must be good reasons for its use, such as preventing theft or protecting staff from harm, and it cannot be placed in areas where a person would expect total privacy, such as changing rooms or toilets.
These reasons must be made clear to staff and it is best practice for employers to reach agreement with staff on the use of CCTV before installation. Once installed, CCTV can only be used for its stated purpose. For example, if it was officially installed to monitor theft, it cannot be used for monitoring attendance. In addition, your employer is obliged by data protection law to ensure the images taken are not inappropriately accessed, and that there is a system in place for you to access images on request.
These principles apply to other areas of privacy, such as searches, telephone and internet monitoring, and
recording attendance. If you feel your privacy in work has been threatened, you should consider these
principles:
What is the proposed system required for and is it justified?
Is there an equally effective system that does not affect privacy?
Have employees been properly informed about the new system before it is put in place?
Was the system, and its purpose, clearly communicated to new employees and reflected in their contract and staff handbook?
Does the system comply with data protection law, including the safe keeping of information about employees?
Is the system actually being used for its stated purpose?
For more information on protecting your privacy, and other information on human rights, visit the Irish Council for Civil Liberties Know Your Rights page http://www.knowyourrights.ie/
For example, an employer is entitled to use closed circuit television (CCTV) in the workplace. However, there must be good reasons for its use, such as preventing theft or protecting staff from harm, and it cannot be placed in areas where a person would expect total privacy, such as changing rooms or toilets.
These reasons must be made clear to staff and it is best practice for employers to reach agreement with staff on the use of CCTV before installation. Once installed, CCTV can only be used for its stated purpose. For example, if it was officially installed to monitor theft, it cannot be used for monitoring attendance. In addition, your employer is obliged by data protection law to ensure the images taken are not inappropriately accessed, and that there is a system in place for you to access images on request.
These principles apply to other areas of privacy, such as searches, telephone and internet monitoring, and
recording attendance. If you feel your privacy in work has been threatened, you should consider these
principles:
What is the proposed system required for and is it justified?
Is there an equally effective system that does not affect privacy?
Have employees been properly informed about the new system before it is put in place?
Was the system, and its purpose, clearly communicated to new employees and reflected in their contract and staff handbook?
Does the system comply with data protection law, including the safe keeping of information about employees?
Is the system actually being used for its stated purpose?
For more information on protecting your privacy, and other information on human rights, visit the Irish Council for Civil Liberties Know Your Rights page http://www.knowyourrights.ie/
Monday, January 10, 2011
Know Your Rights: Prescription Charges
If you have a medical card, you are charged 50c for each prescription item you receive. Usually your pharmacy keeps records of how much you have paid and makes sure that you do not pay more than €10 each month on prescription charges. However you may use different pharmacies in the same month or your family members may not have the same medical card number (for example, where a different doctor is used by the family) and you may end up paying above the cap of €10 per family per month.
If a person or family pay more than €10, the HSE will issue a refund at the end of the quarter, without you needing to apply. This is done on the basis of the information received from the dispensing pharmacy.
However, if you think that you have not received the refund due you can also claim directly from the HSE using a special refund claim form (available from your Local Health Office). An online version of the form is available on medicalcard.ie.
If a person or family pay more than €10, the HSE will issue a refund at the end of the quarter, without you needing to apply. This is done on the basis of the information received from the dispensing pharmacy.
However, if you think that you have not received the refund due you can also claim directly from the HSE using a special refund claim form (available from your Local Health Office). An online version of the form is available on medicalcard.ie.
Saturday, January 8, 2011
Payments for children aged 18 and over!
Child Benefit was discontinued for children aged 18 from January 2010 (regardless of whether they are in education or not). In 2010 parents dependent on social welfare payments got a special compensatory payment of €15 per week for dependent children aged 18.
This compensatory payment will no longer be paid in 2011. This means that when your second son turns 18 you will no longer get Child Benefit nor a compensatory payment for him. However you continue to be entitled to an increase for a qualified child with your social welfare payment for any children in full-time education (until they are 22). This remains at €29.80 per week in 2011.
You should also remember that when your 15-year old turns 16 in 2011, you will need to confirm that he is still in full-time education to ensure that Child Benefit continues to be paid. You should fill in a Child Benefit form (CB2) one month before his 16th birthday.
This compensatory payment will no longer be paid in 2011. This means that when your second son turns 18 you will no longer get Child Benefit nor a compensatory payment for him. However you continue to be entitled to an increase for a qualified child with your social welfare payment for any children in full-time education (until they are 22). This remains at €29.80 per week in 2011.
You should also remember that when your 15-year old turns 16 in 2011, you will need to confirm that he is still in full-time education to ensure that Child Benefit continues to be paid. You should fill in a Child Benefit form (CB2) one month before his 16th birthday.
Wednesday, January 5, 2011
The New Universal Social Charge!
The Universal Social Charge is a new tax payable on your gross income. It is payable on notional income (benefit in kind payments) and it is deducted before pension contributions. It replaces the health contribution and the income levy and comes into effect on 1 January 2011. It does not replace the Pay Related Social Insurance (PRSI) system.
Everyone (including medical card holders) is liable to pay the Universal Social Charge if their gross income is over the threshold of €4,004 in a year. All Department of Social Protection payments (including State pensions and Child Benefit) and similar payments (for example, CE schemes and Back to Education Allowance) and income on which DIRT has been paid are exempt.
The rates of the Universal Social Charge are:
2% on the first €10,036
4% on the next €5,980
7% on the balance
People over 70 are not liable for the 7% rate but pay at 2% on income up to €10,036 and at 4% on all their income above €10,036.
Everyone (including medical card holders) is liable to pay the Universal Social Charge if their gross income is over the threshold of €4,004 in a year. All Department of Social Protection payments (including State pensions and Child Benefit) and similar payments (for example, CE schemes and Back to Education Allowance) and income on which DIRT has been paid are exempt.
The rates of the Universal Social Charge are:
2% on the first €10,036
4% on the next €5,980
7% on the balance
People over 70 are not liable for the 7% rate but pay at 2% on income up to €10,036 and at 4% on all their income above €10,036.
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