Nov 2018

22

PAYE Modernisation for Employees

PAYE Modernisation is coming on January 1st 2019. Ultimately, this means that employers will be obliged to report their employees’ pay and deductions to Revenue when or before they pay them.

There are many benefits for you, as an employee:

  • The availability of real-time data that is accurate and accessible through Revenue’s online systems
  • The ability to maximise the use of your entitlements
  • The ability to access clear information about the deductions being reported to Revenue on your behalf

 

Will PAYE Modernisation affect your pay?

No, there will be no change to how your employer pays you and they will still provide you with a payslip.

However, your employer will now need to connect to ROS before calculating your pay and deductions to ensure they are using your most up-to-date tax credits and cut off points. They will also have to report these deductions to Revenue every time you are paid. You will be able to view pay and deductions on myAccount on the Revenue website.

You will receive your last P60 at the end of 2018. After that, you will no longer receive a P60, as Revenue will issue you with an End of Year Statement.

 

Thesaurus Payroll Manager | BrightPay Ireland

 

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Posted byHolly McHughinPAYE ModernisationPayrollPayroll Software


Nov 2018

9

Manually Processing Payroll with PAYE Modernisation

PAYE Modernisation is the most significant change ever to happen to the Irish PAYE system. The new legislation will be a big change for all employers, especially those with little payroll experience. With the added workload required to process PAYE Modernisation, it is important that all employers prepare for PAYE Modernisation. From the very beginning of the year, employers must be ready to start reporting their payroll information to Revenue in real time.

Revenue estimates that a large number of employers still calculate their payroll manually. With PAYE Modernisation, these employers can still process their payroll using a manual, spreadsheet or paper-based system, but this outdated process will be time-consuming, cumbersome and prone to errors. Failing to comply with PAYE Modernisation will result in penalties or fines being imposed from Revenue.

Employers who process payroll manually will need to login to the ROS portal each pay period, be it weekly or monthly, and manually enter the required details for each of their employees, a bit like manually completing a P35 each pay period. Also, before processing the payroll in any week, manual users will need to login to ROS to get details of tax credits and cut off points.

Many business owners believe that a manual payroll system is a relatively easy way to manage their payroll and can seem like the most cost-effective option. However, along with the additional time required to process payroll, a manual system can result in inaccurate payroll processing as it does not have built-in processes to catch mistakes or notify you of payroll changes. Manual records are also very difficult to maintain, store securely under GDPR and are subject to greater human error. It is important to note that late periodic submissions or a constant pattern of correction submissions will potentially result in non-compliance penalties and fines.

 

PAYE Modernisation with Payroll Software

Revenue has strongly advised employers to review their payroll processes and systems to ensure they meet the new PAYE Modernisation requirements for January 2019. Payroll software which caters for PAYE Modernisation will improve and simplify communications between employers and Revenue.

If you have the correct payroll software tools in place, the ongoing reporting to Revenue will be seamless, ultimately saving time and reducing the risk of errors each pay period. Employers using payroll software that is Revenue compliant will be able to create and send the periodic PSR submission directly to Revenue from the payroll software at the click of a button. This integration with Revenue will also allow employers to automatically retrieve RPNs for employees from within the payroll software. Changes to an employees tax credits and cut-offs can then be updated in the payroll software with just one click.

 

Free Online Training

Thesaurus Software and Revenue have teamed up to bring you free PAYE Modernisation training webinars. We have put together a series of webinars aimed specifically at employers who are currently processing their payroll manually. During the webinars, we will look at the advantages and disadvantages of manually processing your payroll for PAYE Modernisation. Places are limited - Click here to book your place now.

Thesaurus Software is at the forefront when it comes to PAYE Modernisation complaint payroll software. With two different payroll packages to choose from - Thesaurus Payroll Manager and BrightPay - customers will be guaranteed leading-edge software and expertise. To help single-employee companies with their PAYE Modernisation duties, we are offering a free BrightPay employer licence for 2019. This free licence includes free email support and full functionality for PAYE Modernisation.

 

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Posted byRachel HynesinPAYEPAYE ModernisationPayrollPayroll Software


Oct 2018

12

How to Master PAYE Modernisation

In January 2019 Revenue will begin to enforce a new Pay As You Earn system that will introduce real-time reporting of employee’s tax and other deductions directly to Revenue every time an employee is paid. This new system will be known as PAYE Modernisation.

Although the new system is expected to cause a lot of confusion, particularly for small and micro employers, PAYE Modernisation will seek to provide a much more accurate solution to the current PAYE system and ultimately benefit all employers and employees.

For over two decades, Thesaurus payroll software has supported businesses both large and small to pay hundreds of thousands of employees every month. At Thesaurus and BrightPay we are working directly with Revenue to make sure we’re ready for PAYE Modernisation. Our aim is to ensure the new PAYE process is a seamless and smooth process for our users.

Our development team have already experienced what it is like to implement real time processing and reporting in the UK. Our understanding and knowledge coupled with the reliability and maturity of Thesaurus payroll software will guarantee a user-friendly PAYE Modernisation experience.

We understand how stressful this change is going to be for payroll professionals and as a result, to help you get it right, Thesaurus have teamed up with a Revenue representative to bring you a series of webinars where you’ll gain the knowledge needed to comply with and master the new PAYE changes. Places are limited - secure your place today.


PAYE Modernisation: Key facts you must know to ensure 100% compliance.


Agenda:

  • An overview of PAYE Modernisation
  • Recent updates and changes to PAYE Modernisation
  • Can PAYE Modernisation be processed manually?
  • Elimination of the P forms - P30, P60 P35, P46 and P45 forms
  • Making corrections in real-time 
  • The role of payroll software
  • How PAYE Modernisation will affect small employers
  • The benefits of PAYE Modernisation for you
  • 10 step Checklist to PAYE Modernisation
  • How Thesaurus Payroll handles PAYE Modernisation


The Panel
Main presenter: Paul Byrne
Guest presenter: Sinead Sweeney
Guest presenter: Sandra Clarke

More information | Secure your place


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PAYE Modernisation: Meet the experts
PAYE Modernisation: What you need to know
GDPR and Payroll Processing. Do I need consent from my client's employees?


Thesaurus & BrightPay Newsletter - Are you missing out?

We will not be able to email you about webinar events, special offers, legislation changes, other group products and payroll related news without you subscribing to our newsletter. You will be able to unsubscribe at anytime. Don’t miss out - sign up to our newsletter today!

 

Thesaurus Payroll Software | BrightPay Payroll Software

 

Posted byCailin ReillyinPAYEPAYE ModernisationPayrollPayroll Software


Oct 2018

10

Budget 2019 Employer Payroll Focus

Pay As You Earn (PAYE)

  • There was no change to tax rates for 2019, the standard rate will remain at 20% and the higher rate at 40%.
  • Standard Rate Cut Off Points (SRCOPs) will be increased by €750 from 1st January 2019.

Earned Income Tax Credit

The Earned Income Tax Credit will be increased by €200 from €1,150 to €1,350.

Home Carer Tax Credit

The Home Carer Tax Credit will be increased by €300 from €1,200 to €1,500.

Universal Social Charge (USC)

  • Exemption threshold remains at €13,000
  • 4.75% rate reduced to 4.5%
  • 2% threshold increased by €502 from €19,372 to €19,874
  • No change to 8% rate

For 2019, USC will apply at the following rates for those earning in excess of €13,000

Rate Bands Rate
Up to €12,012 0.5%
Next €7,862 2%
Next €50,170 4.5%
Balance 8%


Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will pay a maximum rate of 2%.

The emergency rate of USC remains at 8%.

Non PAYE income in excess of €100,000 is subject to USC at 11%.

National Training Levy

The National Training Levy of 0.8% which is collected as part of the employer PRSI contribution will increase to fund further and higher education, the increases are as follows:

  • 0.9% in 2019
  • 1% in 2020

Pay Related Social Insurance (PRSI)

With the increase in the National Training Levy which is collected as part of the employer PRSI contribution, employer PRSI will increase as follows:

  • 8.6% increased to 8.7%
  • 10.85% increased to 10.95%

The weekly threshold for the higher rate of employer PRSI will be increased from €376 to €386.

The rates of PRSI for Class S will remain unchanged but the range of benefits available to Class S contributions will be extended to include Jobseeker’s Benefit in late 2019.

Benefit in Kind (BIK) - Electric Cars

The 0% rate of BIK introduced in Budget 2018 for electric vehicles provided by an employer to an employee has been extended until 2021 with a cap of €50,000 on the Original Market Value of the vehicle.

National Minimum Wage

The National Minimum Wage will increase from €9.55 to €9.80 per hour in respect of hours worked on or after 1st January 2019.

Social Welfare Payments

There will be a €5 increase in all weekly Social Welfare payments with effect from week commencing 25th March 2019. The maximum personal rate of Illness Benefit will be increased to €203 per week. Maternity Benefit and Paternity Benefit will be increased to €245 per week.

Paid Parental Leave

The Budget provides for 2 additional weeks paid parental leave per parent (paid by the DEASP) to be introduced in November 2019. The leave must be taken during the first year following the birth of a child.

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BrightPay Payroll Software | Thesaurus Payroll Manager

Posted byAudrey MooneyinPayroll


Sep 2018

21

BrightPay wins ‘Payroll Software of the Year’

BrightPay was announced the winner of ‘Payroll Software of the Year’ at this year’s AccountingWEB’s Software Excellence Awards.

The awards, which took place in London, are held by AccountingWEB - an online community for accounting and finance professionals in the UK. The winner is decided by a public vote, whereby members are asked to rate the software systems they use to determine the best products on the market.

It’s a great achievement for BrightPay to win the prestigious award, especially when you look at the number of larger software companies offering payroll in the UK. BrightPay also has a 99% customer satisfaction rate, and is used to process payroll for over 120,000 businesses across the UK and Ireland.

Marketing Manager at BrightPay, Karen Bennett says: “We’re delighted to win this award; it’s fantastic for BrightPay and our team to be recognised by our customers and the AccountingWEB members, and a massive thank you to everyone who voted for us.”

Paul Byrne, Managing Director, says: “It’s a real pleasure and honour to receive this award. It’s great to see such recognition for all the hard work we have put in. We work hard each year to improve the BrightPay experience for all of our customers, both in terms of the payroll software itself and the customer support that we offer.”

 

BrightPay in Ireland

In the Irish market, BrightPay is currently preparing for PAYE Modernisation, a real time reporting system that is being introduced on 1st January 2019. Essentially, employers will be required to report pay information to Revenue each pay period. This overhaul of the Irish PAYE system aims to ensure that employers and employees have the most accurate, up-to-date information relating to pay and tax deductions.

A similar system was introduced in the UK in 2013, which was seamlessly integrated into BrightPay UK payroll software. We have the relevant experience to ensure that PAYE Modernisation is just as streamlined in BrightPay Ireland. By switching to BrightPay Ireland, you can be assured that you have PAYE Modernisation compliant payroll software.

 

Book a demo today to see how BrightPay can help you with PAYE Modernisation.

 

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Posted byRachel HynesinPayrollPayroll Software


Apr 2018

19

Real time reporting to become part of payroll processing

In less than a year the current PAYE system is going to change remarkably with the introduction of real time reporting known as PAYE Modernisation. The current payroll system hasn’t been modified since it was first introduced in the 60’s.

The main objective of PAYE Modernisation is to enable clear communication between Revenue and those who are processing payroll. This change will affect most, if not all businesses across Ireland.

Some of the common questions people have asked about PAYE Modernisation are:

  • What do I have to do differently for PAYE Modernisation?
    PAYE Modernisation will mean that people processing payroll will now how to submit a file to Revenue every pay period as opposed to the current annual ‘P’ forms. Payroll Software will make this a hassle free process, ensuring employers can easily comply with PAYE Modernisation.

  • Will PAYE Modernisation be complicated?
    PAYE Modernisation will likely cause a significant burden to employers, particularly small employers that do not currently utilise payroll software. BrightPay and Thesaurus Software will be fully equipped to make PAYE Modernisation a seamless process for payroll processors. Our developers have already implemented a similar real time reporting process for our UK payroll software.

  • What will PAYE Modernisation cost my business?
    As reports will need to be submitted to Revenue every pay period a lot of businesses will be relying on payroll software to do this for them. If you do not have payroll software in place, now is the time to think about purchasing. Luckily, low cost payroll software, like BrightPay and Thesaurus payroll will seamlessly handle PAYE Modernisation.

  • Will PAYE Modernisation take up a lot of my time?
    For companies still processing payroll manually, PAYE Modernisation will likely impose a significant time burden. For employers utilising payroll software like BrightPay and Thesaurus Software, administrative tasks will be significantly simplified. PAYE Modernisation reports required by Revenue can be sent easily from within the software. Also, the introduction of PAYE Modernisation has meant the elimination of the time consuming annual ‘P’ forms.


Free PAYE Modernisation Webinars

If there is something you’re still unsure of relating to PAYE Modernisation, we have teamed up with Revenue to bring you free online training webinars. These webinars are designed for employers and payroll bureaus to discuss what PAYE Modernisation will mean for your business and to help you prepare for the transition to the new system. You can sign up to our newsletter to get an invitation to our next PAYE Modernisation webinar.

 

Thesaurus & BrightPay Newsletter

GDPR is changing how we communicate with you. After May 2018, we will not be able to email you about webinar events, special offers, legislation changes, other group products and payroll related news without you subscribing to our newsletter. You will be able to unsubscribe at anytime. Don’t miss out - sign up to our newsletter today!

Thesaurus Payroll Software | BrightPay Payroll Software


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Posted byCailin ReillyinPAYEPAYE ModernisationPayrollPayroll Software


Apr 2018

5

PAYE Modernisation - An Introduction

From January 2019 businesses across Ireland will be required to start complying with PAYE Modernisation.  Employers will be required to submit records electronically to Revenue each time a payroll is run (whether it’s weekly, monthly or quarterly), instead of annually.  Revenue have reported that PAYE Modernisation will serve a number of purposes and ultimately benefit all employers.

Some of the key benefits employers include:

  1. Seamless integration into payroll.
  2. Minimize employer cost to comply.
  3. Abolition of P30s, P45s, P60s and end of year returns.
  4. Right tax paid on current due dates.
  5. Time saving.

 It is vital that employers are prepared in order to ensure that the transition in January 2019 is as smooth as possible and to avoid any potential penalties from Revenue.

Our payroll software will help ensure you are fully prepared to make your first submission in January 2019. To get an overview of how PAYE Modernisation will look like on your payroll, book an online demo today.

 

Free PAYE Modernisation Webinar

PAYE Modernisation is a new system that is being introduced where all employers must comply and implement the new PAYE changes. From the 1st January 2019, your payroll will need to be processed in real time, where employers will calculate and report their employee's pay and deductions as they are being paid. This PAYE reform aims to make it easier for employers to pay the correct amount of income tax, PRSI, USC and local property tax and send these figures directly through to Revenue.

  • PAYE Modernisation - Understand how your payroll processing will change
  • Guest Speaker: Sandra Clarke (BCC Accountants)
  • Guest Speaker: Sinead Sweeney (Revenue)

Register Here

 

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Thesaurus Payroll Software | BrightPay Payroll Software

Posted byCailin ReillyinPAYE ModernisationPayroll


Nov 2017

20

Taxation of Illness Benefit - 2018

Currently, employers are required to tax Illness Benefit and Occupational Injury Benefit payments paid to employees by the Department of Employment Affairs and Social Protection (DEASP).


With effect from 1st January 2018, employers will no longer be responsible for taxing Illness Benefit. From this date Revenue will tax Illness Benefit by adjusting employee's tax credits and/or rate bands. Revenue will receive real-time interfaces of taxable DEASP income and the adjusted tax credits and/or rate bands will be notified to employers via P2C files. As a result of this change there will be more frequent P2Cs for employees. While payroll operators will no longer need to tax Illness Benefit, it will be extremely important to implement amended P2Cs immediately.


In addition, from 1st January 2018 Illness Benefit letters will no longer be delivered to the ROS Inbox. In light of this change, employers may need to review their sick pay schemes.

 


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 Thesaurus Payroll Software | BrightPay Payroll Software

 

Posted byAudrey MooneyinPayrollSick Leave/Absence Management


Nov 2017

16

Why not get more for you and your employees when making Bonus payments?

As the long dark evenings set in and Halloween is over, the build up to the most wonderful time of the year will begin again! At this time of the year a significant amount of employers pay-out a Christmas/annual bonus and no matter how little or large the bonus is, a large portion ends up being paid over to the Revenue if it is put through the payroll as a taxable addition.

For example, if an employee’s salary is €35,000 per annum and they receive a bonus of €1,000 at Christmas, this  employee would only receive around half of this amount after tax, employee PRSI and USC. The company would also be liable to pay 10.75% employer PRSI on the bonus, so in addition to giving the bonus of €1,000 there is also the extra €107.50 meaning the bonus is in fact costing the company €1,107.50.

The Solution

Revenue allow one small non-cash benefit per employee per annum up to the value of €500, PAYE, PRSI OR USC do not need to be applied to the benefit. A gift card or voucher seems to be the most popular way of allowing this payment to be made to the employee. The most popular gift card would seem to be One4All gift cards. Thesaurus Payroll Manager offers unique integration with One4All allowing employers to purchase gift cards quickly and easily for their employees. The integration offers a range of benefits, including:

  • The ability to pay via EFT, a facility not available to regular gift card customers
  • No additional charges, unlike when purchasing direct from the Post Office
  • Tracking of gift cards purchased so that you as an employer are alerted if you attempt to purchase more than one gift card for an employee in any one tax year 
  • Prevention from ordering a card in excess of the exemption limit, i.e. €500. 

Please note, where a benefit exceeds €500 in value, the entire amount will be subject to PAYE, PRSI and USC.

Purchasing gift cards through Thesaurus Payroll Manager is both simple and straightforward. To order, simply click on the Gift Card option at the top right hand side of the screen, fill in your company details, select the amount for each employee's gift card and click to proceed to the gift card website. The software will bring you to the gift card website where you will arrange payment and delivery details.

It is also possible to order Me2You gift cards through Thesaurus Payroll Manager, if required tick to order from Me2You.
For further details, click here.

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Posted byDenise CowleyinPayrollPRSI


Nov 2017

14

PAYE Modernisation – What do these changes mean for you?

The existing PAYE (Pay As You Earn) system was introduced nearly sixty years ago ensuring that correct deductions are made relating to pay and tax.

From 1st January 2019, this system for PAYE will undergo a long overdue update, but don’t worry, this update will benefit all involved – including employers and employees.

 

Employers –

PAYE Modernisation will change how employers report their payroll information to Revenue. Every time an employee is paid a file will need to be submitted (electronically) to Revenue, consisting of all details of employee payments, deductions and leaver information. The contents will be similar to the current annual P35, but this file will be submitted every pay period (weekly, monthly, fortnightly, etc.).

The update will also allow employers to submit a new employee’s information before they commence employment with them. PAYE Modernisation / Real Time Reporting (RTR) will result in a reduction in the occurrence of year end over/underpayments of tax.

This new Revenue reporting system is anticipated to be fully integrated into payroll software. Fortunately, it is envisaged that the workload will not increase as a result of PAYE Modernisation.



Employees –

An online statement will be sent before the start of the new tax year which will detail the employee’s tax credits and standard cut-off point (SRCOP). This will be based on estimated income and details available to Revenue.

Employees will be encouraged to make any adjustments to this online statement, including any claims for additional entitlements. This differs from the current system where an employee is required to wait until the end of the tax year to apply for any refund as a result of overpayment of taxes or to find out if there are amounts due to Revenue as a result of underpayment of taxes.

P60s will be abolished, employees will instead have access to their pay and tax record online, this will be updated on an ongoing basis throughout the year as they are paid. This will enable Revenue to carry out periodic reviews to identify if employees are utilising their tax credits and SRCOP to the maximum effect (e.g. where an employee has 2 employments) and, where applicable, employees will be prompted to reallocate tax credits and SRCOP.

 

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Posted byLorraine McEvoyinPAYE ModernisationPayrollPayroll Software