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Dec 2022

22

Your year-end payroll checklist

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.

Download Thesaurus Payroll Manager 2023 from the 16th of December

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.

 

How to import your data form the previous tax year?


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.

 

Get your year-end summary report


Year-end summary reports are available under ‘Reports’ > ‘Year end Summary’ and can be printed or copied into excel.

No P60s and P35s needed – employees just access their EDS

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.

When will 2023 RPNS be available?

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.

What is a ‘Week 53’ and do I have one?

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.

What if an employee's pay straddles between two tax years?

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.

Book a Bright Product demo link

Posted byEleanor Mc GuinnessinPayrollPayroll Software


Dec 2022

14

How to identify and process Week 53 in payroll

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.

 

 

 

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Posted byHolly McHughinPAYEPayroll


May 2022

6

How to integrate payroll and HR

In a Censuswide survey of 251 HR and payroll managers, 76% of businesses admitted to failing to pay their employees correctly or on time on one or more occasion. In the 2019 survey it was also revealed that, on average, employees had been paid incorrectly or late four times in the previous twelve months. This failure can sour employee relations and employees may feel they are unable to trust their employers.

Successful businesses are built on relationships and when there is a breakdown of trust, relationships are damaged, and your business may suffer consequently. When a concern arises for an employee, it is often the HR department that they first turn to – including questions and issues to do with pay. Whether or not you think that payroll should be the responsibility of HR personnel, businesses can benefit from integrating the two functions.

Thesaurus Connect is the cloud extension to payroll software, Thesaurus Payroll Manager, that can streamline payroll and HR processes; meaning less work for employers and more peace of mind that your employees’ pay will be accurate. Thesaurus Connect can also help improve communication between you and your employees. Effective communication within organisations has become more important than ever since the COVID-19 outbreak forced many of us to work remotely.

Thesaurus Connect gives you access to an online employer portal from which you can manage employees in many ways. An unlimited number of users can be added, meaning the portal can be accessed safely and securely by any colleagues you wish to allow access. Listed below are eight features of Thesaurus Connect and how these features can benefit employers, HR departments and payroll processers.

 

1. Payroll Records - Instantly access your employees’ payslips and payroll documents, run your own payroll reports, and view amounts due to Revenue anywhere, any time, through your secure online portal.

2. Employee Self-Service - Invite your employees to an online self-service portal and employee app where they can access their payslip library, request annual leave, access HR documents and update personal contact details. Find out more. Employees can download the employee app on their smartphone or tablet; giving them instant access to their payroll information on the go. The employee app is available to download for free on any Android or iOS device.

3. Employee Records - Employers and managers can keep track of their employees’ basic personal details, which can be updated by employees. This ensures that you have the most accurate and up-to-date details on file for your employees.

4. Employee Calendar - The real-time employee calendar allows you and your colleagues to see, at a glance, who is on leave, when, and whether they are on annual leave, unpaid leave, parenting leave or sick leave.

5. Leave Management - Employees can submit holiday requests with a few simple clicks. Managers will be notified of the request and can view the holiday calendar online before approving, ensuring that you always have sufficient cover.

6. Secure Cloud Storage - When it comes to payroll, data security is extremely important. Payroll information is stored on Microsoft Azure, which is one of the most secure ways to store data.

7. Company Messaging - Whether it is an important memo, the company newsletter, or details of a staff party, the notification system will transform internal communications. All employees can be kept up to date on what is happening in the workplace, regardless of where they are located.

8. HR Documents & Resources - You can share documents and resources with individuals, teams or the whole company at the touch of a button. Track who has viewed circulated documents and who has not.

Book a Thesaurus Connect demo today to learn more about these features and how they can benefit your business.

Posted byElaine CarrollinEmployee Self ServicePayroll


Jan 2022

6

Transform your payroll this year with digital banking

Similar to their European counterparts, Irish consumers have increasingly moved online, both for their shopping and for their banking. Over the past year, consumers who had previously never used digital channels turned to online and mobile banking for the first time. The use of cash declined while contactless payments surged, with a record €1 billion payments made in May 2021. While the use of digital banking has been on the rise for a number of years now, the pandemic urgently accelerated a shift in digital behaviour. A survey conducted at the start of this year found that 69% of Irish consumers trust digital banking providers with 62% of these saying it was due to the simplicity of their services.

It should come as no surprise that this change in digital behaviour is also reflected in how businesses are managing their payments. As technology continues to advance and consumers become more experienced with digital banking, their behaviour is reflected in their decision making in the workplace. This has already been seen in the payroll sector.

In the UK, we’ve seen payroll processors adopt digital banking solutions in order to improve their payroll workflow, have more flexibility with making payments, and to send faster payments to their employees. Accountants and payroll bureaus have also begun offering it as a new service to customers.

How does digital banking improve the payroll workflow?

An integrated system between the payroll software and the digital finance platform can offer a smoother, more efficient payroll workflow. Using an API (Application Programming Interface) users can initiate payments from within the payroll software enabling them to pay employees and subcontractors with a few clicks of a button. It saves time and is more efficient.

How does digital banking offer more flexibility?

Those payroll processors experienced with using traditional bank payment methods will be used to the overly long process of submitting bank files every month or even every fortnight, to pay employees’ wages. You’re typically required to submit bank payment files at least three days in advance of when the payment is due which can be quite a manual process with numerous steps involved in it.

Digital banks offering access to the Single Euro Payment Area (SEPA) allows businesses to send payments across the EU member states (and 8 other countries) and can also offer the option of EUR and GBP accounts. Payments can be sent on the day they’re due (before 2.00pm) and if they’re sent any time after that or sent on a non-working day, they’ll arrive by the following working day.

How can payroll processors access digital banking?

Thesaurus payroll software users now have access to Modulr, the payments platform behind banking app Revolut, to pay employees. Payroll processors looking to speed up their workflow with a more convenient payment method will have access to SEPA credit transfers. By signing up to Modulr, the payroll processor can initiate payment from within Thesaurus payroll software once the payroll has been finalised. The payment then needs to be approved by two-factor authentication using their phone before being sent to employees.

Learn more about Thesaurus payroll software’s integration with Modulr.

What is the future of SEPA?

SEPA is a much better alternative to bank payment files which is why there has been such an uptake of it across the EU. It allows for quicker payments and faster processing times. However, as part of their long-term strategy, the European Payments Council have developed SEPA Instant Payments. With this, users can send payments instantly 24/7. While this has not been rolled out by retail banks in Ireland yet, it’s likely we’ll see the rollout of this by more digital banks in the near future. Stay posted!

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Posted byÁine CourtneyinPayrollSEPA


Nov 2021

22

Christmas bonuses and One4All gift cards: your festive payroll guide covered

It’s coming close to the end-of-year madness, and as payroll processors you’re likely to be particularly busy in the lead-up to Christmas. Between managing the annual leave requests, Christmas bonuses, and holiday pay, there are a quite a few payroll tasks to sort out. To help you with this, we’ve put together a few key points to remember if you’re processing the payroll this Christmas.

Christmas Bonuses:

A Christmas bonus can put a smile on every employee’s face and can be the perfect way to say ‘thank you’ for all the hard work done during a difficult year. However, it’s important you don’t get caught out on tax implications.

Under Revenue’s Small Business Exemption Scheme, employers can gift employees and directors a small benefit of up to €500 in value, tax free, each year. Certain guidelines must be followed:

  • This benefit cannot be in cash.
  • Only one such benefit can be given to an employee in one tax year. Only the first one qualifies for tax free status, even if you do not offer the full €500.

With this tax-free benefit, you have the potential to save up to €653.65 in tax per employee as the total cost of a net €500 gift paid through payroll is €1,153.65. Remember though, if a benefit exceeds €500 in value, the full value of that benefit is subject to tax.

In order to qualify for the small benefit exemption, it is important that gift cards are not given to employees as a salary sacrifice. This means you cannot fund the bonus from a deduction of your employee’s salary. The rewards must be invoiced and paid external to payroll.

Vouchers:

  • Tax-free vouchers are a popular way of gifting a Christmas bonus to employees.
  • Tax-free vouchers can be used only to purchase goods or services.
  • The tax-free vouchers must be purchased from the business bank account or credit card.
  • Employees or directors cannot purchase a voucher themselves and seek reimbursement for it.

One4all gift cards are commonly used as they allow employees to choose a gift from over 11,000 retailers. They also don’t charge over administration, service, or delivery.

If you’re a Thesaurus Payroll Manager customer, you can purchase One4all gift cards through the software. The software's integration with One4all allows you to easily purchase the cards, and more importantly, it can keep track of your purchases. This ensures that you’ll be notified if you attempt to purchase more than one gift card for an employee in any one tax year. Click the link to discover more about how the integration between Thesaurus Payroll Manager and One4All works.

Please note: to use the One4All feature on Thesaurus Payroll Manager you must have upgraded to the latest version of the software.

When to pay employees in December:

It’s common for many businesses to have a different payroll date in December. Often, employees will be paid earlier in December so they can cover their holiday expenses and because many businesses are closed at the end of the month.

It's likely only your monthly paid employees will be affected by this. If you plan to pay employees early, make sure you give yourself enough time to process the payroll in advance. Give your employees notice of the change in pay date and enough time that they can submit their expenses if they have any. Remember to make provisions to ensure that you report your employees’ pay to Revenue on or before the pay date.

Managing annual leave requests:

Christmas can be a very busy time for many businesses, and it may also be a time when employees are most looking to take annual leave. While you need to ensure you have enough employees working to cover this busy period, you should also look to be as fair as possible.

It’s recommended that you have a clear policy on holiday requests. Most often, a “first-come, first-served” approach is used. This provides a fair and transparent method for all employees. One way of achieving this is by using an employee app. Thesaurus Connect, a cloud add-on to Thesaurus Payroll Manager, includes an employee self-service platform which can be accessed online or through the Thesaurus Connect employee app. The app gives employees access to a self-service portal that they can use to request leave at any time. Once a request has been made, the employer or their manager, will be notified of it. When a request has been made it is time stamped, allowing you to see the order in which they come in. The employee will then be notified if the request has been accepted or rejected. Thesaurus Connect also includes a company-wide calendar for the employer to view so that you can ensure that there is adequate staffing before approving an annual leave request.

Discover more

Interested in learning more about annual leave management on Thesaurus Connect? Book a free online demo here for a detailed walkthrough of everything Thesaurus Connect has to offer you and your business.

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Posted byÁine CourtneyinAnnual LeaveBrightPay ConnectPayroll


Oct 2021

13

Budget 2022 - An Employer Payroll Focus

Income Tax

There is no change to tax rates for 2022, the standard rate will remain at 20% and the higher rate at 40%.

  • The Standard Rate Cut Off Point (SRCOP) has been increased by €1,500
  • The Personal Tax Credit increased by €50 from €1,650 to €1,700
  • The Employee Tax Credit increased by €50 from €1,650 to €1,700
  • The Earned Income Credit increased by €50 from €1,650 to €1,700

Universal Social Charge (USC)

  • Exemption threshold remains at €13,000
  • There are no changes to the rates of USC
  • The 2% USC rate band has increased by €608, from €20,687 to €21,295

USC Rates & Bands 2022

  • €0 – €12,012 @ 0.5%
  • €12,013 – €21,295 @ 2%
  • €21,296 – €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%.

Employment Wage Subsidy Scheme

The Employment Wage Subsidy Scheme (EWSS) will continue until the end of April 2022 in a graduated form.

  • The current rates will remain for October and November 2021
  • Employers availing of EWSS on December 31st 2021 will continue to be eligible until April 30th 2022, assuming they meet the eligibility criteria which will continue to be a 30% reduction in turnover/customer orders in 2021 compared to 2019
  • EWSS will close to new employers from January 1st 2022
  • For December, January and February a two-rate structure will apply as follows:

 Level of subsidy the employer will receive is per paid employee

Employee Gross Weekly Wages Subsidy Payable
Less than €151.50 Nil
From €151.50 to €202.99 €151.50
From €203 to €1,462 €203
More than €1462 Nil

 

  • For March and April 2022, a flat rate subsidy of €100 will apply
  • The reduced rate of employer’s PRSI will no longer apply for the final two months of the scheme

National Minimum Wage

The National Minimum Wage will increase by 30 cent from €10.20 to €10.50 per hour from January 1st 2022.

Pay Related Social Insurance (PRSI)

The weekly threshold for the higher rate of employer PRSI will increase to €410 from €398, this is in line with the increase in the National Minimum Wage.

Parent’s Leave

Parent’s leave has been increased by two weeks, this brings it up to seven weeks from July 2022.

VAT

The reduced rate of 9% VAT for the tourism and hospitality sector will continue to apply until the end of August 2022.

Social Welfare Payments

There will be a €5 increase in all weekly Social Welfare payments with effect from January 2022. The maximum personal rate of Illness Benefit will be increased to €208 per week. Maternity Benefit, Parent’s Benefit and Paternity Benefit will be increased to €250 per week.

Remote Working

Where an employer does not pay the e-working allowance (€3.20 per day) to an e-worker, employees will be able to claim tax relief on 30% of the cost of vouched expenses for heat, light and broadband in respect of the days worked from home.

Extension of BIK Exemption for Electric Vehicles

The BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure will take effect from 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023, €24,000 for 2024 and €10,000 for 2025.

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Posted byAudrey MooneyinEmployment UpdateNewsPayroll


Feb 2021

1

Q&A - Common Support Queries on EWSS

Due to the changes and updates to the COVID-19 Government schemes, our support team put together the top four common questions – asked by you and answered by us!

When earnings fluctuate and are within the limits for the Employment Wage Subsidy Scheme (EWSS) in some pay periods and not others, do we need to untick EWSS for the employee?

No. There is no need to remove the tick for EWSS, our software will remove the indicator from the payroll submission (PSR) in the pay periods the earnings fall outside the relevant limits.

The subsidy being received is more than we are paying the employees, do we pay the employees the difference or will we owe that money back to Revenue?

In some scenarios the employer will receive a subsidy greater than the wages they are paying; they will not have to repay that money to Revenue. The employee should only be paid the wages that are due and not any extra. In other scenarios the subsidy received from Revenue will be less than the wages they are paying.

What payments are permitted under EWSS e.g., can you pay the employees commission?

Yes. The EWSS is a subsidy payable to employers, therefore, it will not show on employee payslips or in myAccount. Under EWSS employers are required to pay employees in the normal manner i.e., calculating and deducting Income Tax, USC and employee PRSI through the payroll. Employees should be paid the wages that are due to them which can include commission, overtime etc.

When employees are claiming the Pandemic Unemployment Payment (PUP) from the Department of Social Protection, do we need to do anything on the payroll?

Yes. You should ensure that the employee’s payment is changed to zero, continue to update them with zero pay until such time you are paying them wages again.

More information can be found in the COVID-19 guidance section on our website or by visiting the COVID-19 Resources Hub.

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Posted byAudrey MooneyinCoronavirusPayrollWages


Nov 2020

18

A Thank You Note

A thank you note,

Well where should I start? When the whole country went into lockdown back in March, I was faced with the new task of working from home with my three young children.

So overnight I became a work/stay-at-home mom and a teacher all at once! It was definitely a huge challenge which was very stressful at times; trying to find a new routine that we could all settle into but we managed for the most part.

Working on the phones during this time has also been a huge task as everything about how payroll was processed had changed in both Ireland and the UK. All the different rules and processes that we had to learn about as all our customers were coming to us looking for answers was another hurdle in itself. We had a number of software upgrades that were released based on changes made by Revenue which also had to be tested before being released.

My children are aged 9, 6 and (just turned) 5 so the younger two don’t understand the concept of being quiet and would be hurtling through the house playing games with each other, making as much noise as they possibly could! And then my dogs would start barking wanting to join in on all the fun! Always the way when you want them to be quiet. But every single person I spoke to on the phones was so understanding and compassionate with me always telling me to tend to them first and not to worry.

All of our customers themselves were under an enormous amount of pressure because, let’s face it, they are the ones that have to process payroll at the end of the day and are the ones answerable to all their employees if something isn’t done right. Payroll during this pandemic was crucial and even though themselves were under pressure they always related back to my situation with understanding. So thank you, each and every one of you.

I also wanted to say another huge thank you to my managers and colleagues. Everyone has been so supportive of one another. We can no longer see each other to bounce queries off each other so we now communicate through Teams which has been a lifesaver. Anytime anyone mentioned that they were having a rough day or morning they would always tell you to go off the phones to make yourself a cuppa and come back when you’ve managed to breath - that they would man the phones and not to be worrying. This in itself was massive.

I just wholeheartedly wanted to say thank you to everyone for all your understanding and support as the last 8 months wouldn’t have been possible without it!

Posted byCaoimhe ByrneinPayroll


Nov 2020

13

Free webinar - Wage Subsidy Scheme with Revenue

We have teamed up with Revenue to bring you a free webinar where we discuss everything you need to know about TWSS reconciliation and the Employment Wage Subsidy Scheme (EWSS). 

Wage Subsidy Scheme with Revenue

10.30am | 19th November

Register Now

The Employment Wage Subsidy Scheme (EWSS) gives employers impacted by COVID-19 a subsidy payable per employee to help keep them in employment. This scheme has replaced the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020 and will run until 31 March 2021. 

Employment Wage Subsidy Scheme | Guest: Revenue

What you’ll learn:

  • What is TWSS Reconciliation
  • The Key Points of the Employment Wage Subsidy Scheme
  • Employer & Employee Eligibility Criteria
  • Operating Payroll & Processing of Subsidy Claims
  • Operating EWSS with BrightPay & Thesaurus Payroll Manager
  • Q&A Panel Discussion

Hear from Payroll Experts

Q&A Panel:

  • Paul Byrne, Managing Director at Thesaurus Software?
  • Audrey Mooney, Customer Support Manager at Thesaurus Software?
  • Laura Murphy, HR Manager & Employment Law Expert at Thesaurus Software?

From the Revenue Commissioners:

  • Karen Byrne,?Assistant Principal (Personal Division)
  • Siobhán?Gilbourne,?Higher Executive Officer (Personal Division)
  • Gearóid Murphy,?Principal Officer (Personal Division)
  • Anne Dullea, Principal Officer (Medium Enterprises Division) & business owner of the EWSS?
  • Laura Glancy, Assistant Principal (Personal Taxes, Policy and Legislation Division)


Even if you can’t make it, register now and we’ll send you a recording.

 

Related Articles:

Thesaurus COVID-19 Resource Hub
Blog: Customer update October 2020
On-demand COVID-19 Webinars 

Posted byZoe ColverinEmployment UpdatePayrollPayroll Software


Oct 2020

15

Budget 2021: Employer Payroll Focus

Here are the main points from Budget 2021, as delivered by Minister for Finance Paschal Donohoe.

Pay As You Earn (PAYE)

There is no change to tax rates for 2021, the standard rate will remain at 20% and the higher rate at 40%.

In addition, there is no change to Standard Rate Cut Off Points (SRCOPs).

Earned Income Tax Credit

The Earned Income Tax Credit will be increased by €150 from €1,500 to €1,650 to bring it in line with the PAYE tax credit.

Dependent Relative Tax Credit

The Dependent Relative Tax Credit will be increased by €175 from €70 to €245 to support families with caring responsibilities.

Universal Social Charge (USC)

  • Exemption threshold remains at €13,000
  • 2% threshold increased by €203 from €20,484 to €20,687
  • Due to the increase to the 2% threshold, the income chargeable at 4.5% reduces from €49,560 to €49,357
  • There are no changes to the rates of USC

For 2021, 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 €8,675 2%
Next €49,357 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 Minimum Wage

The National Minimum Wage will increase by 10 cent from €10.10 to €10.20 per hour from January 1st 2021.

Pay Related Social Insurance (PRSI)

The weekly threshold for the higher rate of employer PRSI will increase to €398 from €395, this is in line with the increase in the National Minimum Wage.

State Pension Age

The age to qualify for the State Pension will remain at 66 for 2021, it was due to increase to 67.

Illness Benefit

The ‘waiting days’ for Illness Benefit will reduce from 6 days to 3 days for all new claims from the end of February 2021.

Parent’s Leave

Parent’s Benefit has been increased by three weeks, this brings it up to five weeks. The leave must be taken during the first year following the birth of a child.

Wage Subsidy Scheme

The Employment Wage Subsidy Scheme (EWSS) is due to continue until 31st March 2021, a wage subsidy scheme in some form is expected to be in place until the end of 2021.

Warehousing of Tax Liabilities

The tax debt warehousing scheme will be expanded to include repayments of the Temporary Wage Subsidy Scheme (TWSS) owed by employers.

Covid Restrictions Support Scheme (CRSS)

A new scheme was introduced for businesses impacted by Covid-19 restrictions, it will provide support for businesses that have had to close because of Covid-19. The scheme is operational from October 13th until March 31st 2021.

The payment will be calculated as a percentage of the business’s average weekly VAT exclusive turnover in 2019 subject to a maximum payment of €5,000 per week. The first payments are expected to be made in Mid-November.

VAT

The 13.5% rate of VAT for the tourism and hospitality sector will be reduced to 9% from November 1st 2020, the reduced rate will remain in place until December 31st 2021.

For the latest payroll updates, don’t miss our next free webinar where we are joined by Revenue.

Webinar: Wage Subsidy Scheme with Revenue

10.30am | 19th November

Register Now

Webinar Agenda

  • TWSS Reconciliation
  • Employment Wage Subsidy Scheme - Key Points
  • Employer & Employee Eligibility Criteria
  • Operation of Payroll & Processing of Subsidy Claims
  • Operating EWSS with BrightPay & Thesaurus Payroll Manager
  • Q&A Panel Discussion

If you are unable to attend the webinar at the specified time, simply register and we will send you the recording afterwards.

Register Now.

 

Related Articles:

BrightPay COVID-19 Resource Hub
Blog: Customer update October 2020
On-demand COVID-19 Webinars

Posted byAudrey MooneyinEmployment UpdatePayrollSick Leave/Absence Management