Oct 2020

6

Cycle to Work Scheme Changes: What you need to know

In the July Jobs Stimulus Plan, announced by Taoiseach Micheál Martin, changes were introduced to the existing Cycle to Work scheme. The Cycle to Work scheme is a government initiative that was introduced in January 2009 and allows the employer to purchase a bicycle and safety equipment for an employee for travelling to and from work. The cost of the bicycle and safety equipment can be deducted from the employee’s wages in the form of salary sacrifice. This salary sacrifice is set up as an allowable taxable deduction and reduces the gross salary for PAYE, USC and PRSI purposes by the amount of the salary sacrifice. The salary sacrifice cannot be more than 12 months and the employer and employee must agree how the deductions can be made.

The allowance for the cost of the normal bike and safety equipment was €1,000 and in July this was increased by €250 to €1,250. The allowance cost of an electric bike and safety equipment rose to €1,500 from the previous rate of €1,000. The existing period to avail of the scheme every five years is being reduced to every four years. The tax year that the bike is purchased counts as the first year under the scheme. The bike and safety equipment must be used as part of the journey the employee takes between their home and their normal place of work.

If an employer purchases a bike for an employee and does not require the employee to pay for it, the employee will be exempt from tax on the benefit on the cost of a normal bike up to €1,250 and on an electric bike for up to €1,500. If the cost exceeds these exemptions, the employee will have to pay PAYE, USC and PRSI on the balance of the cost of the bike.

An employer does not have to inform Revenue if they have employees availing of the Cycle to Work Scheme but records must be maintained by the employer for any purchases made under this scheme, such as invoices, which employee the purchase was for, payment amounts, etc.

New webinar: Employment Wage Subsidy Scheme (EWSS) - What you need to know

Join our new webinar, Employment Wage Subsidy Scheme (EWSS) - What you need to know, to learn about the latest government scheme and its impact on payroll. As the Temporary Wage Subsidy Scheme has now ended, there is a new Employment Wage Subsidy Scheme which will run until April 2021. Register now.

In this webinar, we discuss what you need to know about TWSS Reconciliation and the Employment Wage Subsidy Scheme (EWSS). We are delighted to be joined by guest panelist Sandra Clarke - President of the Irish Tax Institute & Partner at BCC Accountants. Register now.


Related links:
Don't forget about your July / August EWSS Sweepback!
Increase to CWPS Rates on 1st October 2020
Webinar: Employment Wage Subsidy Scheme (EWSS) - What you need to know

Posted byDebbie ClarkeinCoronavirus


Sep 2020

17

Increase to CWPS Rates on 1st October 2020

The Construction Workers' Pension Scheme (CWPS) is an industry-wide, occupational pension scheme providing pension solutions for employees in the construction and related industries, providing economic pension and protection benefits to both employees and employers.

It is designed to allow construction workers and their families retirement and low-cost protection cover. CWPS has over 30,000 active members employed by over 2,000 employers and is amongst the biggest occupational pension schemes in Ireland.

An increase in the rates will take effect on 1st October 2020 as agreed in the Sectoral Employment Order. The employer contribution total increases by 2.7% from €29.79 to €30.60 and the employee’s contribution total increases by 2.7% from €20.03 to €20.57.

A breakdown of the new rates are below:

With effect from 1/10/2020
Pension Contribution Employer €28.09
Pension Contribution Employee €18.73
Life Assurance Contribution Employer €1.17
Life Assurance Contribution Employee €1.17
Sick Pay Contribution Employer €1.34
Sick Pay Contribution Employee €0.67
Total Employer Rate €30.60
Total Employee Rate €20.57

 

There are no changes for the additional voluntary extras of Construction Workers Health Trust member contribution of €1.00 and the Benevolent Funds of employer contribution of €0.19 and member contribution of €0.50.

BrightPay Payroll Software | Thesaurus Payroll Manager

Posted byDebbie ClarkeinPayroll


Jul 2020

24

July Jobs Stimulus Plan – Employer Focus

Newly appointed Taoiseach Micheál Martin announced the July Stimulus package worth €5.2 billion which included 50 new measures to help businesses and in turn help with the recovery of our economy. The major measures introduced in this package are as follows:

  • From September 1st the current Temporary Wage Subsidy Scheme (TWSS), which is due to end on 31st August, will be replaced by the Employment Wage Subsidy Scheme (EWSS). This new scheme will run for 6 months until 31st March 2021. Under this scheme, employers and new firms in sectors impacted by Covid-19 whose turnover has fallen 30% will receive a flat-rate subsidy of up to €203 per week for each employee, including seasonal staff and new employees. 
  • Employers will receive an incentive of €2,000 to take on apprentices in 2020 under the Apprenticeship Incentivisation Scheme.
  • If an employer hires an employee under the age of 30 who is on the Live Register or the Pandemic Unemployment Payment, a recruitment subsidy of up to €7,500 over two years will be available under the JobsPlus Scheme.
  • Legislation will be passed to confirm that businesses affected by Covid-19 can delay payment of their PAYE and VAT debts in part or in full for a particular period without collecting interest or penalties.
  • The standard rate of VAT will be cut by 2% for a 6 month period commencing September 2020, reducing the rate to 21%.
  • A new Stay and Spend Incentive has been introduced, any taxpayer spending over €625 on accommodation and meals including non-alcoholic beverages between October 2020 and April 2021 can claim back up to €125 through a tax credit.
  • Changes have been made to the existing Cycle to Work scheme. The new allowance of €1,250 has increased by €250 from the old rate of €1,000 to promote expenditure on cycling. The allowance has increased by €500 to €1,500 for electric bikes. The existing period to avail of the scheme of five years is being reduced to four years.

Posted byDebbie ClarkeinCoronavirus


Jul 2020

16

3 extra weeks of Parents’ Leave for Pandemic Parents

Roderic O’Gorman, Minister for Children has announced that three additional weeks of parents leave has been proposed for Cabinet approval for parents of children born during the Covid-19 pandemic. This means parents leave will increase from two weeks to five weeks for new parents with children born after 1st November 2019. The rate of pay for this additional parents leave will be €245 per week. But this additional parents’ leave will not be available until it comes into effect in November 2020.

Every parent is currently entitled to two weeks’ parents leave in the first year when their child is born or adopted on or after 1st November 2019. Parental leave is different where a parent is entitled to take unpaid leave from work up to a current maximum of twenty two weeks to look after their children. This is changing to twenty six weeks on 1st September 2020.

Subscribe to our mailing list for more information on this and other important updates. 

Posted byDebbie ClarkeinPayrollPayroll Software


Oct 2019

9

Budget 2020 – Employer Focus

Finance Minister Paschal Donohoe announced Budget 2020 with very few changes:

  • There is no change to tax credits, cut off points or the rates of PAYE
  • There is no change to the rates of Universal Social Charge (USC)
  • The Earned Income Tax Credit will increase by €150 to €1,500
  • The Home Carer Tax Credit will increase by €100 to €1,600
  • The Benefit In Kind will remain as 0% on electric vehicles provided by an employer to an employee until 2022
  • The Minimum Wage increase of 30c recommended by the Low Pay Commission has been deferred due to the threat of a no-deal Brexit. The current rate of €9.80 per hour will remain until there is more clarity on Brexit.

PRSI: 

The National Training Levy which is collected as part of Employer PRSI will increase by 0.1% from 0.9% to 1% in 2020 to fund further and higher education.

  2019 2020
Employer PRSI Class A Reduced Rate 8.7% 8.8%
Employer PRSI Class A Higher Rate 10.95% 11.05%
Employer PRSI Class H 10.25% 10.35%

 

BrightPay Payroll Software | Thesaurus Payroll Software

Posted byDebbie ClarkeinPAYE


Sep 2019

12

CWPS rates to increase on 1st October 2019

The Construction Workers' Pension Scheme (CWPS) is a multi-employer occupational pension scheme providing pensions solutions for workers in the construction and related industries, at a low cost to both employees and employers. It is designed to allow construction workers and their families retirement and low cost protection cover.

The pension rates for CWPS agreed in the Sectoral Employment Order will increase from 1st October 2019. The employer contribution total will increase by 78 cents and the employee’s contribution total will increase by 53 cents.

The new rates are as follows:

  Employer Contribution Employee Contribution Total
  Pension Contribution €27.35 €18.24 €45.59
  Death in Service Contribution €1.14 €1.14 €2.28
  Sick Pay Contribution €1.30 €0.65 €1.95
  Totals €29.79 €20.03 €49.82


The additional voluntary extras of Construction Workers Health Trust member contribution of 1.00 and the Benevolent Funds of employer contribution of 0.19 and member contribution of 0.50 will remain the same as the current rates.


BrightPay Payroll Software | Thesaurus Payroll Software 

Posted byDebbie ClarkeinPayroll


Jun 2019

4

New User Management Interface for Thesaurus Connect

Our new User Management feature for Thesaurus Connect makes it more seamless and quicker for users to be set up or amended. It offers the option to select permissions for multiple employers at one time for a standard user. There is also a new permission to allow standard users to connect and synchronise employers from Thesaurus to Connect and a new feature to mark an employer as confidential.

Types of Users for Connect

  • An administrator has full control over a Thesaurus Connect account, with the ability to edit account settings, add other users, redeem purchase codes, connect employers and manage all employer and employee information and processes.

  • A standard user typically has access to just one employer in your Thesaurus Connect account, although they can be granted access to multiple employers if required. A standard user can view employer (and associated employees) information with various levels of restrictions and permissions.

User Permissions & Confidential Employers

As before, standard users can be set up so that they are restricted by department, so that they can only see information pertaining to employees that are associated with a particular department. They can also be restricted from accessing certain information, such as the ability to:

  • View financial information including payslips and reports
  • View employees marked as confidential
  • View employee documents
  • NEW: Connect and synchronise employer data
  • Approve employee self-service requests

You now also have the option to grant a standard user access to all current employers, along with any new employers linked to the Connect account. Simply select ‘Grant Full Access to all Employers’ and select the permissions you wish to be applied to the user, including the new permission to Connect and Sync employer data.

If required, an employer in Connect can be marked as confidential under the settings tab on the employer’s dashboard and only administrators on the Connect account will be able to view this employer. Standard users can only access confidential employers if they are given permission to do so.


Sep 2018

12

National Minimum Wage - Increasing Jan 19

Currently, the national minimum wage is €9.55 per hour, which increased on 1st January 2018. The Low Pay Commission has recommended that the national minimum wage be increased by 25 cent to €9.80 per hour. The Government has accepted this recommendation and this increase is due to be introduced in January 2019.

This is the fifth increase of the national minimum wage since 2011. This increase could benefit up to 120,000 employees, increasing their hourly rate by 2.6%. An employee working 40 hours per week will see their gross pay increase by €10.00.

The new minimum hourly rates will be:

  • Experienced adult worker – €9.80
  • Under age 18 – €6.86
  • In the first year after the date of first employment over age 18 - €7.84 
  • In the second year after the date of first employment over age 18 - €8.82
  • In a course of training or study over age 18, undertaken in normal working hours-1st one third period: €7.35; 2nd one third period: €7.84; 3rd one third period: €8.82 

The Taoiseach, Leo Varadkar said “this increase will put us in the top five in the world for our national minimum wage in cash terms and purchasing power.”

 

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BrightPay Payroll Software | Thesaurus Payroll Manager

Posted byDebbie ClarkeinPay/Wage


Jul 2017

19

National Minimum Wage Proposed Increase of 30c per hour

The Low Pay Commission has recommended that the National Minimum Wage be increased by 30c per hour, from €9.25 per hour to €9.55 per hour from 1st January 2018. An employee working a 40 hour week will see their gross wage increase by €12.00 a week. Since 2011 this is the fourth increase in the national minimum wage.

In the report the Low Pay Commission has published it has explained with necessary data of its recommendation of the increase, including international competitive and risks to the economy research. In The Low Pay Commission’s findings submissions from interested parties and consultations with employees and employers in relevant economic sectors had taken place.

This increase will affect around 120,000 employees, increasing their national minimum wage by 3%. 10.1% of employees were earning the National Minimum Wage or less last year according to figures published from the Central Statistics Office last April.

While Taoiseach Leo Vardakar said ‘The Government welcomes the recommendation from the Low Pay Commission to increase the National Minimum Wage by 30c to €9.55 per hour’, the Programme for Government commitment for a minimum wage of €10.50 per hour is still a few steps off.

Posted byDebbie ClarkeinEmployment UpdatePAYEWages