Now that 2023 is almost upon us, let’s get you up to speed on your year-end duties. Here are some final things to note, and some common questions that’ve come in, so you can have Thesaurus Payroll Manager all set and ready to go for January.
To purchase your licence for the new tax year, simply login to your BrightID. From here, go to ‘Licences’ and ‘purchase a desktop licence key’. Just select the type of licence you require, select a payment method and enter your billing details. You’ll then be emailed your licence key. To download the software for the new tax year, click here.
On the open screen, select? ‘Import from last year's payroll'?or go to?File > Import files from 2022. Select last year’s payroll software. All employer files will appear and you simply select employer from the listing and click the double right arrow button to bring them across into the new tax year. If you have multiple employers to import, select them from the central box and repeat the process. Thesaurus Payroll Manager will let you know when the data has been imported.
Please note that?if you’re using the standard version of Thesaurus Payroll Manager and the software is installed to the default directory, you’ll be offered an automated import.
Year-end summary reports are available under ‘Reports’ > ‘Year end Summary’ and can be printed or copied into excel.
P60s are no longer used as of 2019, and have been replaced with Employment Details Summary (EDS). This is essentially a summary of an employee’s pay, income tax, USC, PRSI and LPT and is available for to access, print or save through Revenue’s myAccount. We advise that employees wait until after the 15th of January to access their EPS, as employers can make corrections on them up until this date.?
P35s are also no longer used, and have been replaced with PSRs that are submitted each pay period through your payroll software to Revenue.
RPNs for next year will be available in December 2022, but won’t be updated in real time until 2023. If an employee’s payment date is 2023, you must use 2023 RPN as a 2022 RPN can’t be used in 2023. We advise payroll processors to not make payroll submissions with a 2023 pay date until the RPNs are available, as emergency tax will apply.
A ‘Week 53’ is when there’s an extra day in the tax year and a pay day falls on the 31st of December or, in a leap year, on the 30th or 31st of December, and is not the employee’s normal payday.
It only applies to employees who are paid weekly (53 weekly payments) fortnightly (27 fortnightly payments) or every four weeks (14 four-week payments) pay days in the year.
If a ‘Week 53’ payment applies to an employee, PAYE Regulations state that the employers should use the latest RPN to apply an extra pay period’s Tax Credit and Cut-Off Points, and deduct Income Tax and USC on a Week 1 basis. No additional tax credits or rate bands are due.
Your payroll software should automatically apply the rules outlined above. Just make sure to run ‘Week 53’ as a separate payroll run to other pay periods, so the is submitted with the correct payment date to Revenue.
Please note that?Thesaurus Payroll Manager will always offer a Week 53 option subsequent to the completion of Week 52. However, it should only be used if, on completion of week 52, there’s a subsequent pay period within the same tax year. If an employee's normal pay day has changed during this tax, additional USC cut off points don’t?apply.
To let the software know and prevent these extra USC cut off points from being allocated, go to Employees > Add/Amend Employees > Select the employee > Click the Revenue Details tab > Tick to indicate exemptions/exclusions apply > tick to exclude the employee from the week 53 USC concession > update to save the change.
If an employee’s pay straddles between two tax years, credits and rate bands?cannot?be given in advance. So if an employee is receiving two weeks of pay on the 23rd of December this year for the following two Mondays on the 26th December and 2nd January, the payment date must be reported as December 23rd using the credits and rates from week 52. They will then receive the benefits of two weeks’ credits and rate bands in week 2 of 2022. ‘Week 53’ will not apply to this situation and if attempted, will result in underpayments to employees.
Here at Thesaurus Payroll Manager, we work hard behind the scenes to ensure our payroll software has all the latest updates, and is simple and easy to use. For all the latest payroll trends and news, subscribe to our newsletter. Interested in learning about more about Bright’s products? We offer a range of multi-award-winning payroll, HR, accounting, tax and practice management software. Book a demo today to see what you’re missing.
|Friday 23rd||09:00 - 13:00|
|Wednesday 28th||09:00 - 13:00 | 14:00 - 17:00|
|Thursday 29th||09:00 - 13:00 | 14:00 - 17:00|
|Friday 30th||09:00 - 13:00 | 14:00 - 16:45|
|Saturday 31st December||Closed|
|Sunday 1st January||Closed|
|Monday 2nd January||Closed|
All of the staff here at Thesaurus Payroll Manager would like to thank you for your valued custom in 2022. We would like to take this opportunity to wish you and your families a Merry Christmas and a prosperous New Year.
To contact our support team you can call us on 01 835 2074, or email us at email@example.com
A week 53 arises in payroll when there is an extra payday in the tax year. It only applies to employees who are paid weekly (week 53), fortnightly (fortnight 27) or 4-weekly (4-weekly 14).
If an employer changes a payday during the year, or in the previous year, resulting in a ‘week 53’ payday, no additional tax credits or rate band are due. This also applies where a payment, including a notional payment, is made to an employee on 31 December (or 30/31 December in a leap year) and it is not the employee’s normal payday.
If a week 53 arises, PAYE Regulations state that the employer should use the latest Revenue Payroll Notification (RPN) to apply an extra pay period’s tax Credit and cut-off points and deduct Income Tax and Universal Social Charge (USC) on a Week 1 basis. If the emergency tax basis applies to an employee, then the employer must continue to apply the normal rules that apply to the calculation of income tax or USC on an emergency basis.
If a normal week 53 applies, your payroll software will automatically apply the rules, as outlined above. It is highly recommended that you always run a week 53 as a separate payroll run to any other payroll period, ensuring that a separate Payroll Submission Request (PSR) is submitted to Revenue with the correct payment day.
If the normal pay date falls on the 1st January and payment is made to the Employees on the 31st of December (as the 1st is a Bank Holiday) this is not a week 53 calculation, but the first pay period of the new tax year.
On 27th of September 2022, Minister for Finance, Paschal Donohoe, and Minister for Public Expenditure and Reform, Michael McGrath, presented the 2023 budget. Minister McGrath called the budget a “Cost of Living Budget”, and said it was focused on helping individuals, families and businesses deal with rising prices.
Below, we've listed some of the measures from the budget which will most affect employers.
There are no change to tax rates for 2023, the standard rate will remain at 20% and the higher rate at 40%.
• The Standard Rate Cut Off Point (SRCOP) has been increased by €3,200 from €36,800 to €40,000
• The Personal Tax Credit increased by €75 from €1,700 to €1,775
• The Employee Tax Credit increased by €75 from €1,700 to €1,775
• The Earned Income Credit increased by €75 from €1,700 to €1,775
• The Home Carer’s Tax Credit will increase by €100
• Exemption threshold remains at €13,000
• There are no changes to the rates of USC
• The 2% USC rate band has increased by €1,625, from €21,295 to €22,920
USC Rates & Bands 2023
• €0 – €12,012 @ 0.5%
• €12,013 – €22,920@ 2%
• €22,921 – €70,044 @ 4.5%
• €70,045 + @ 8%
Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will continue to pay a maximum rate of 2%.
The emergency rate of USC remains at 8%.
Non-PAYE income in excess of €100,000 will continue to be subject to USC at 11%.
Any taxpayer that are renting a property and are not receiving housing supports will qualify for a rent tax credit of €500 per annum. In the case of married couples or civil partners this credit will be doubled. This will come into effect in 2023 but can be claimed for rent paid in 2022 in early 2023.
The tax relief for remote workers remains unchanged at claiming relief of to 30% of the cost of vouched expenses for heat, electricity and broadband in respect of those days spent working from home.
The Small Benefit Exemption has been increased from €500 to €1,000, with employers permitted to give employees two vouchers per year, as opposed to one voucher which was permitted to date. This applies for 2022 and years following.
There are no changes to the ASC rates for 2023.
The National Minimum Wage will increase by 80 cent from €10.50 to €11.30 per hour from 1st January 2023.
Due to the increase in the minimum wage on 1st January 2023 the upper threshold for paying the 8.8% Class A rate of employer PRSI is being increased from €410 to €441 from the 1st January 2023. There is no change to the PRSI credit.
The reduced rate of 9% VAT for the tourism and hospitality sector and electricity and gas bills will continue to apply until the 28th February 2023. 0% rate of Vat is introduced in respect of newspapers and news periodicals, including digital editions, defibrillators, hormone replacement and nicotine replacement therapies, and certain period products from 1st January 2023.
There will be a €12 increase to core weekly Social Welfare payments with effect from January 2023. The maximum personal rate of Illness Benefit will be increased to € per week. Maternity/Paternity/Adoptive /Parent’s Benefit will increase to €262 per week from 1st January 2023.
This week was both a sad and exciting week for everyone here at Bright as our current Chief Executive Officer, Paul Byrne has decided to step down as CEO and transition into a new role as Founder Board Director. It is hard to put into words how amazing a CEO Paul Byrne has been for the past 32 years. As the founding father of Thesaurus Software and Brightpay Paul built Thesaurus Software from a small family company to become Bright, a leading provider of accounting, payroll and HR solutions. With this amazing growth the small company family has grown to a family of over 200 employees who I think will all agree that the company wouldn’t be where it is today without Paul’s hard work and amazing leadership.
Although it is sad to have our amazing leader stepping down it allows Paul to get back to what he loves, his original product baby, Thesaurus Payroll Manager which he is excited to dedicate more of this time towards. So while Paul gets back to his coding roots we are both delighted and excited to announce that AccountancyManager’s Kevin McCallum will take the baton from Paul and will be Bright’s new CEO. ??
Kevin joined Bright as part of the AccountancyManager acquisition back in March 2022 and since then Kevin has shown great knowledge, energy, and experience. Since joining Bright, Kevin has been impressed with our shared vision and passion for the future of the accounting industry which is what will make for an exciting year ahead with Kevin at the helm.
To celebrate this new phase in Paul and Kevin’s lives we had a small celebration in our head office in Duleek where kind words were shared by our Chief Revenue Officer, Karen and Chief People Officer, Laura who presented Paul with a small gift to mark Paul’s impact on the business and to show our thanks for what he has done for the company and its employees to date. And for us to always remember our former CEO we have changed the name of his favourite room, the boardroom, to be 'The Paul Byrne Suite'.
Thank you again Paul for everything you have done for the staff over the past 32 years and congratulations to both Paul and Kevin on their new roles, the future is certainly Bright.
Today we treated our employees in our Duleek, Tallaght, Warwick, and India offices with a sweet treat.
Our employees were surprised with ice cream at lunchtime as a perfect mid-week rescue.
It certainly went down a treat!
Last week the AM team exhibited at Xerocon for the first time. Xerocon is described as the Glastonbury for accountants, and if you haven't been or seen the photos - it's a big deal. Unlike other conferences, accountants attend Xerocon for the talks (rather than to see the exhibitors) and comedian Sue Perkins opened the show at 9am. Sue (best known for the Great British Bake Off) was brilliant throughout the event.
AM had great conversations with attendees and were consistently surprised at the size of the firms they talked to. Typically, when attending events like AccountEx, AM would talk to smaller firms (sole practitioners, 2 or 3 employees), but on average, everyone had around 30 employees.
AM ended the event with 115 scanned badges, all of which have been passed over to the Teleprospecting team. It was a tremendous amount, and we and AM were delighted they got the opportunity to have gotten the opportunity to speak with so many firms that were interested in the product. They also got the chance to meet many existing users and got to know them a bit more on a personal level.
• Most likely because attendees have to pay, only the larger firms attend the event.
• Many disgruntled Senta users' concerns regarding the Iris acquisition are now becoming a reality.
• People liked the idea of AM joining Bright - BrightPay and AM both have a great reputation and users are excited to see what we can achieve together.
On 20th July, the Sick Leave Bill 2022 became law. Once the law is commenced, which is expected to happen shortly, employees will be entitled to three statutory sick days. This will rise to five days in 2024, seven days in 2025 and to ten days in 2026.
Backing up payroll data, sharing payroll reports with clients and sending clients’ employees their payslips each pay period can be costly and time consuming. With cloud-extension Thesaurus Connect, you can transform your practice by taking care of these tasks within a few clicks.
Do you have an automated system in place that can help manage your employees’ annual leave? If not, this can be a monotonous task for employers. Read our latest blog and explore how an online company calendar can revolutionise your business.
How can you ensure all financial statements are automatically in line with the latest tax and legislative requirements? Surf Accounts Production has a dedicated compliance team in place to manage the complexity of compliance obligations.
Sharpen up your billing process by using customisable templates, setting up recurring invoices, and by quickly converting quotes and orders to invoices. Save even more time by using the Surf Accounts app, and work from anywhere.
The relationship between the client and the professional is no longer one-directional. What software has created is a new collaborative framework in which the payroll professional can thrive.
Improve employee satisfaction and make your life easier by introducing an employee app with powerful features. Employees can access the app securely, using their smartphone or tablet, from anywhere with an internet connection.
Details regarding Auto Enrolment in Ireland were announced this year. The system is to be set up in 2023, with employee enrolments to begin in 2024. Learn how you can start preparing your business for auto enrolment now, to get ahead of the curve.
The Irish government announced that the current minimum wage will be replaced by a new living wage by 2026. This new living wage is to be set at 60% of the median wage in a given year. Read more in our recent blog post.
This week, on 20th July, the Sick Leave Bill 2022 became law. Once the law is commenced, employees in Ireland will be entitled to sick pay. The Irish Government first produced a draft to introduce a new Sick Leave Bill back in November last year. An Tánaiste, Leo Varadkar, announced in March 2022, that the Sick Leave Bill was approved by cabinet and will legislate for a statutory sick pay scheme for all employees, which will be phased in over a four-year period. Before the law was passed, Ireland was one of the few countries in Europe who were without mandatory sick leave entitlement. Before the Sick Leave Act, only about half of all employers had their own sick pay scheme. The Covid-19 pandemic helped to highlight the need for such a scheme to be introduced into Ireland.
When the law is commenced, which is expected to happen shortly, employees will be entitled to three statutory sick days. This will rise to five days in 2024, seven days in 2025 and to ten days in 2026. Employers will pay employees at a rate of 70% of an employees’ wage, subject to a daily maximum threshold of €110. These earnings are based on 2019 mean weekly earnings of €786.33 and an annual salary of €40,889.16.
The rate of 70% and the daily cap are there to ensure excessive costs are not placed solely on the employer. The introduction of the new Sick Leave Bill is to provide a minimum level of protection to low paid employees, who may not be entitled to a company sick pay scheme.
If your business does not have a sick leave scheme set in place already, the new legislation being introduced will act as your sick pay scheme. Employers must keep a record of all employees who have availed of the scheme for up to four years, those who fail to keep a record may be fined up to €2,500.
To ensure that your employees are entitled to receive sick leave pay under the scheme, they must obtain a medical certificate as proof, and must have worked for their employer for a minimum of 13 weeks. If your employees’ sick pay entitlement is finished, and they need extra time off, they may be able to qualify for illness benefit from the Department of Social Protection, depending on their PRSI contribution.
The new Sick Leave Bill will help ensure employees are not penalised for missing days due to illness. Once the law is commenced, your payroll software should be updated to cater for this new employee entitlement.
Do you often feel that your annual leave process is scattered and unorganised? Maybe you’ve missed an employee’s email, only to discover weeks later that certain dates have been double-booked, leaving you short-staffed. This can frustrate employees and employers alike, especially during busy periods. That’s why we recommend having a system in place that can deal with employee annual leave requests in a straightforward and fair way, while reducing the likelihood of errors such as double-booking from occurring.
We recommend using a cloud-based annual leave system, ideally one that syncs with your payroll software. This can automate the process even further for you, which we will explain in greater detail further down. An online, companywide leave calendar can revolutionise how you manage annual leave and streamline your business’ processes. Here are 3 ways an online company calendar can transform your business.
A company leave calendar allows you to view all of your employees’ past and scheduled leave from one central location. No longer do you need to spend hours editing excel spreadsheets and scrambling through emails – you can now process everything from one central hub.
A company calendar allows you to have a complete overview of your employees’ leave, letting you see, at a glance, who is on leave and when. This allows you to make better decisions when dealing with leave requests. It also allows you to spot patterns of absence more easily, meaning you can deal with unauthorised absenteeism before it becomes an issue. It can also save your business time by reducing the likelihood of errors that can crop up due to mismanaged annual leave.
With a company leave calendar, employees can view their total leave for the year, including their leave taken and leave remaining. This reduces the likelihood of employees constantly contacting you about how much leave they have left, as they can now view it themselves, whether on an employee app or via an internet browser. This in turn, gives your employees more control over their leave and personal data, streamlining communication and reducing stress levels across the board.
Implementing an online company calendar can also modernise your business by improving your carbon-footprint. Digitalising paper-based systems can cut down on supply costs for paper, printer ink and envelopes. This also keeps your company up to date with modern business practices, making sure that you stay in line with competition.
Thesaurus Payroll Manager’s online company calendar is an intuitive and user-friendly calendar that’s available through their cloud extension, Thesaurus Connect.
As an employer, you can view your company calendar via a secure employer dashboard. From here, you can also be notified of annual leave requests from employees, which you can then easily approve or reject. Employees on the other hand, can access their calendar through a self-service employee app. Employees can simply login to view how many annual leave days they have taken and how many days they have left. They can simply choose the dates within the calendar that they wish to book, and the notification will be sent to the person responsible for taking care of that particular employee’s request. The leave will then be automatically added to the online employee calendar.
Thesaurus Payroll Manager’s cloud extension, Thesaurus Connect, allows you to streamline many other payroll and HR tasks, including: