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.
Friday, December 24, 2010
What Public holidays are due?
Christmas Day (25 December), St Stephen’s Day (26 December) and New Year’s Day (1 January) are public holidays. In 2010 Christmas Day falls on a Saturday and St Stephen’s Day falls on a Sunday. In 2011 New Year’s Day (1 January) falls on a Saturday.
There is no specific provision in law governing what happens when a public holiday falls on a weekend. This means that you do not have an automatic legal entitlement to take the next working day off work. You are entitled to the normal alternative arrangements for public holidays. These are:
A paid day off within a month of the public holiday
An additional day of annual leave
An additional day’s pay
The nearest church holiday to the public holiday as a paid day off.
Under the Organisation of Working Time Act 1997 you may ask your employer, at least 21 days before a public holiday, which of the alternatives will apply to you. Your employer should respond to you at least 14 days before the public holiday. In practice most employers will give employees Monday 27 and Tuesday 28 December and Monday 3 January off in lieu of the public holidays – but it is important to remember that this is not an automatic entitlement.
There is no specific provision in law governing what happens when a public holiday falls on a weekend. This means that you do not have an automatic legal entitlement to take the next working day off work. You are entitled to the normal alternative arrangements for public holidays. These are:
A paid day off within a month of the public holiday
An additional day of annual leave
An additional day’s pay
The nearest church holiday to the public holiday as a paid day off.
Under the Organisation of Working Time Act 1997 you may ask your employer, at least 21 days before a public holiday, which of the alternatives will apply to you. Your employer should respond to you at least 14 days before the public holiday. In practice most employers will give employees Monday 27 and Tuesday 28 December and Monday 3 January off in lieu of the public holidays – but it is important to remember that this is not an automatic entitlement.
Wednesday, November 24, 2010
Budget 2011 4 Year Plan
Taxation Measures to be Introduced:
- Tax credits and bands to be reduced by 16.5%, which will reduce the entry point of income tax to approx E15,300 from E18,300 in 2010 tax year
- Minimum wage to be reduced from E8.65 to E7.65
- Implement pension-related tax changes to yield E700 million, with E240 million in tax savings on the public sector pension related deduction.
- Abolish/curtail a range of tax expenditures yielding E755 million.
- Increase the standard rate of VAT from 21% to 22% in 2013, with a further increase to 23% in 2014. These changes will yield E620 million.
- Introduce a local services contribution to fund essential locally-delivered services. This will yield E530 million.
- Increase the price of carbon gradually from E15 to E30, yielding E330 million.
- Reform capital acquisitions and capital gains tax to yield an additional E145 million.
Wednesday, November 3, 2010
Reduced frequency of tax returns and payments
Reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will again be extended to eligible businesses from 1 January 2011. Visit revenue.ie for full details.
Friday, October 29, 2010
Out Sick? Should your employer pay.
In general an employee has no right under employment law in Ireland to be paid while on sick leave. Consequently, it is at the discretion of the employer to decide his/her own policy on sick pay and sick leave, subject to the employee’s contract or terms of employment.
Friday, October 15, 2010
Self Employed not Earning??
What social welfare payments are available if your business has slowed down?
If you are self-employed but do not have enough business to provide sufficient income, you can access social welfare jobseeker's payments. It is not necessary to close down your business to access these payments.
If you find yourself unemployed or you are getting less work you may qualify for a social welfare payment. You do not need to de-register as self-employed to get a social welfare payment.
Contact your local welfare office for further details.
If you are self-employed but do not have enough business to provide sufficient income, you can access social welfare jobseeker's payments. It is not necessary to close down your business to access these payments.
If you find yourself unemployed or you are getting less work you may qualify for a social welfare payment. You do not need to de-register as self-employed to get a social welfare payment.
Contact your local welfare office for further details.
Friday, September 24, 2010
Calculating Redundancy?
A redundancy lump sum is calculated according a certain formula based on years of service in an employment. The citizensinformation.ie has provided a simple worksheet to help you work it out for yourself. Visit the page Here!
Tuesday, September 21, 2010
New Social Payment
A GROUP assessing the impact of the proposed universal social contribution (USC), to replace employee PRSI, and the health and income levies will report to Minister for Finance Brian Lenihan within weeks.
A new universal social contribution will replace employee PRSI, the health levy and the income levy. It will be paid by everyone at a low rate on a wide base as a collective contribution to public services.
Finance Minister, Mr Lenihan announced his intention to introduce the charge on income in his budget speech last December.
A new universal social contribution will replace employee PRSI, the health levy and the income levy. It will be paid by everyone at a low rate on a wide base as a collective contribution to public services.
Finance Minister, Mr Lenihan announced his intention to introduce the charge on income in his budget speech last December.
Thursday, September 16, 2010
Extra training Places
E12 million has been allocated to fund 5,000 extra training and education places for unemployed people under the Labour Market Activation Fund. Qualifax.ie has details of education and training courses, including the places for unemployed people supported by the Labour Market Activation Fund.
Wednesday, June 9, 2010
PAYROLL E-LEARNING 2010 VIDEO PREVIEW
UNABLE to attend our courses, Why not preview our new Payroll E-Learning Video and see for yourself how easy our interactive PC based 2010 guide is to use. Click Here to View.
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