Making an Employee Redundant

A redundancy situation can often arise in the following situations:

• an employee’s job ceases to exist
• the employer ceases to carry on the business
• the requirement for employees has diminished
• an employee is not skilled for work that is to be done

In the event of a redundancy, employees are covered under Redundancy Payments Acts 1967-2014, if they meet the following requirements:

• aged 16 or over
• have at least 2 years continuous service (104 weeks)
• are a full-time employee insurable under PRSI class A, or PRSI Class J for a part-time employee

How to calculate Statutory Redundancy Pay

Statutory Redundancy is payable at a rate of:

• 2 weeks’ pay for each year of service. If the period of employment is not an exact number of years, the excess days are credited as a portion of a year
• plus one week’s pay

The term ‘pay’ refers to the employee’s current normal gross weekly pay, including average regular overtime and benefits in kind. The above, however, is based on a maximum earnings limit of €600 per week (before PAYE, PRSI & USC).

An employer may also choose to pay a redundancy payment above the statutory minimum. In such circumstances, the statutory payment element will be tax free but some of the lump sum payment may be taxable.

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Posted byMarzena IgnarinEmployee Records

Public Holiday Pay Entitlement

There can often be some confusion surrounding an employee's entitlement to pay for a public holiday particularly where the employee may be part-time or the public holiday falls on a day that the employee does not normally work.

It is also worth noting that not every bank holiday is a public holiday though in most cases they coincide. Good Friday is a bank holiday but it is not a public holiday. The following dates are the official public holidays in Ireland.

• New Year's Day (1 January) 
• St. Patrick's Day (17 March) 
• Easter Monday 
• First Monday in May, June, August 
• Last Monday in October 
• Christmas Day (25 December) 
• St. Stephen's Day (26 December) 

Employees who qualify for public holiday benefit will be entitled to one of the following:

• A paid day off on the public holiday 
• An additional day of annual leave 
• An additional day's pay 
• A paid day off within a month of the public holiday

So, who is entitled to a payment?

• Part-time employees qualify for public holiday entitlement if they have worked at least 40 hours in the 5 weeks ending the day before the public holiday.
• Full time employees are not required to have worked up a minimum number of hours.

How to calculate the amount to be paid?

If the public holiday falls on a day which the employee would normally work:

• Full-time employees are entitled to one of the above four options at the employer’s discretion.
• Part-time employees have the same entitlement, so where the employee’s pay is a fixed amount the normal daily rate can be used. If the pay varies, the daily rate should be calculated over the 13 weeks immediately before the public holiday in question.

If the public holiday falls on a day which the employee does not normally work:

Further information can be found at Organisation of Working Time Act 1997.

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Posted byDonna WalshinEmployee RecordsPay/WagePayrollWages

Long Service Awards - Appreciation to staff

Have you employees with 20 plus years of service? If so why not say thank you with a gift.
Revenue Commissioners offer tax relief on long service awards, which is considered to be at least 20 years of service. Tax relief on long service awards can be in addition to the small benefit exemption.
Employers can reward employees for long service with tangible articles with a value up to a maximum of €50 per year of service, starting at 20 years of service and every 5 years thereafter.

• 20 years of service – value up to €1,000
• 25 years of service – value up to €1,250
• 30 years of service – value up to €1,500
• 35 years of service – value up to €1,750

The award must be a tangible article e.g. a gold watch, it does not apply to awards made in cash.
Tax will not be charged provided:

• The cost to the employer does not exceed €50 per year of service
• The award is made in respect of service not less than 20 years
• No similar award has been made to the recipient within the previous 5 years

Where any of the conditions are not met PAYE, PRSI & USC must be applied on the full amount.
Details can be found on Revenue's website

New PAYE Modernisation legislation to be in place by Jan 2019

Are you ready for PAYE Modernisation?

Posted byAudrey MooneyinEmployee Records