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2013 Newsletter No 6 - PRSI E-mail

Pay Related Social Insurance (PRSI)

Employer's PRSI

As mentioned in our previous Budget Newsletter there has been no change made to the PRSI rates for 2014 by way of the Budget. However, please note that the current Employer PRSI rate of 4.25% is due to go back up to 8.5% for 2014. This reduced rate was enacted under the Social Welfare and Pensions Act 2011. It was a temporary measure which was (and did) to run from July 11 to Dec 13.

PRSI on Passive Income (Non-PAYE scoured)

PRSI will also be liable for all passive income earned in 2014 by any individual (under the age of 66) in excess of €3174.  Revenue define a “Chargeable Person” as anyone who is in receipt of Non-PAYE income in excess of €50,000 which gives rise to a net benefit of €3,174 or more.

 

Last Updated on Wednesday, 20 November 2013 15:46
Read more... [2013 Newsletter No 6 - PRSI]
 
2013 Newsletter No 6 LPT E-mail

Local Property Tax (LPT) - for the Individual

Details for the Individual

The Local Property Tax (LPT) Returns have now been issued by Revenue. All Residential Property Owners who paid in a "SINGLE LUMP SUM" or those who "made regular payments by cash" should have received their respective returns.

Alternatively where an individual has filed their LPT returns via ROS they will receive their correspondence into their ROS InBox.

Last Updated on Wednesday, 20 November 2013 15:45
Read more... [2013 Newsletter No 6 LPT]
 
2013 Newsletter No 5 E-mail

Budget 2014 was delivered yesterday.  As you are most likely aware there are no significant changes to the operation of PAYE, PRSI or to USC.  However there are some changes in other areas you need to be familiar with in relation to preparation of payroll. We set out hereunder for your ease of reference the main points in relation to Budget 2014.

Last Updated on Thursday, 07 November 2013 15:51
Read more... [2013 Newsletter No 5]
 
2013 Newsletter No4 E-mail

July is a big month for changes in payroll. As we have previously focused on the Local Property Tax (LPT), we will try to avoid overkill on this topic. However please note that the collection of the LPT has commenced as of 1st July.

In this issue we examine:

  • Taxation of Maternity Benefit
  • Revenue's ongoing investigation into Contractors
  • Directors PRSI Class (Clarification)
  • Revenue E-Briefs
  • PRSI / Welfare - recent updates & publications

As always, should you need any assistance please do not hesitate to contact us on 01-2101967.

Last Updated on Tuesday, 16 July 2013 11:16
Read more... [2013 Newsletter No4]
 
2013 Newsletter No3 E-mail

Following on from our recent newsletter (No 2 - Employer LPT), in this issue we deal with the Employee/Individual elements of the Local Property Tax.

  • LPT Responsibilities for the Employee
  • LPT Links and Guides
  • LPT Calculations

If an individual has any issue with their Local Property Tax, it is vital that they should contact Revenue as soon as possible. The contact details for the Revenue LPT Section are:

  • Tel: 1890-200-255 / 01 7023049
  • Email:  This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  • By Post: LPT Branch, PO Box 1, Limerick

Note: All employers are bound by Revenue Regulations to deduct the LPT from an individual’s income where they have been instructed to do so, even if the deduction has been issued in error by Revenue. It is vital that the individual contacts Revenue to address any problems.

As always, should you need any assistance please do not hesitate to contact us on 01-2101967.

Last Updated on Tuesday, 16 July 2013 11:05
Read more... [2013 Newsletter No3]
 
2013 Newsletter No2 E-mail

May is an important month for the Local Property Tax (LPT). All LPT Returns must be returned to Revenue during May. All paper returns were to be returned by the 7th May. All other returns being filed electronically by the 28th May.

Due to the level of detail involved in the Local Property Tax, this topic has been split into two parts, Newsletter No 2 has the LPT for the Employer, and  No 3 has the LPT for the Employee. Please feel free to forward on these details if you wish.

No 2

  • LPT Responsibilities for the Employer
  • LPT Payroll Issues
  • LPT Calculations

No 3

  • LPT Responsibilities for the Employee
  • LPT Links and Guides
  • LPT Calculations

As always, should you need any assistance please do not hesitate to contact us on 01-2101967.

 

Last Updated on Tuesday, 16 July 2013 11:06
Read more... [2013 Newsletter No2]
 
2013 Newsletter No1 E-mail

 

Welcome to our first newsletter for 2013. Over the next 12 months there are a number of expected changes due to occur in the area of payroll. The primary changes are due to the 2012 Budget, which is expected to come into law with the passing of the 2013 Finance Act. The exact details of the Finance Act 2013 (which may vary from the Budget) are expected to be published on the 13th of February, 2013.

Given that a number of the expected changes have not yet been fully documented, items such as Local Property Tax (and the interaction of this with Payroll) and the proposed taxation of Maternity Benefits are still fairly vague. We will review these items in detail in a later issue.

In this issue we examine:

General outlines of the Local Property Tax
Miscellaneous Payroll Changes (Budget 2013) you may have missed.
Revenue crack down on Company Expenses
New PPSN / Company Number changes
New Banking procedures
Revenue E-Briefs
PRSI / Welfare - recent updates & publications

As always, should you need any assistance please do not hesitate to contact us on 01-2101967.

 

Please note we are currently running a series of Payroll Courses around the country based on the recent legislation changes. More training dates are available on the website (click here).

 

Last Updated on Tuesday, 28 May 2013 08:46
Read more... [2013 Newsletter No1]
 
November Newsletter E-mail

By

September/October Newsletter - Part 2
Welcome to Part 2 to of October's newsletter.
In part one we examined:
PRSI Classes - General
Revenue E-Briefs - September
PRSI / Welfare - recent updates & publications
In part two we examine
PRSI Classes Directors/Owners/Spouse/Family Members
Starters / Leavers P45 & P46
Also don't forget to check out the Welfare Section for seminars about Employment/Revenue & Welfare Schemes.
As always should you need any assistance please do not hesitate to contact us on 01-2101967.
Please note we are currently running a series of Payroll (training) Courses around the country based on the changes that have been implemented due to recent legislation changes. More training dates are available on the website (click here).
PRSI Class for Directors / Business Owners & related spouses/family
Care should be used in identifying the PRSI Class of a Proprietary Director (50% shareholder) / Business Owner and both their respective spouses and or family members.
Typically Class S has been/is used by Directors/Business owners and sometimes (to a lesser extent) for spouse of directors; however the PRSI Scope section (which is generally the deciding entity) have not issuing any rulings on the determination of a PRSI Class S since February 2011.
However in response to an inquiry we sent into SCOPE regarding Class S, the Scope Welfare Manager who responded, indicated that Class S should strictly just be used by those individuals who are self-employed and NOT by company directors. This is due to both company and also a director being separate legal entities. Although they do acknowledge that in practice this is not typically the case.
Where a spouse or family member is employed in a family COMPANY then they should be employed under PRSI class A. Where the spouse or family member is employed in a family BUSINESS (sole-trader/partnership entity) then PRSI can be allocated as Class M.
ROS / Notice to Employers for Cessation & Commencement of work
ROS has recently issued a new Notice to employers providing details with respect to starters and leavers.
Cessation
P45's (Part 1) should be issued to REVENUE "day the employee ceases to be employed immediately the employment ceases".
P45's (Parts 2,3&4) should be issued to EMPLOYEE's "on the date the employment ceases"
However it should be noted that ROS will NOT accept a pre-dated P45 file. ROS can only accept a file dated the actual date of transmission or else one with an earlier date.
In practice it is generally not be feasible to apply the above criteria where the termination date does not match or tie in with a payroll period date. Thus standard practice is to issue a P45 on the date of an employee’s date of cessation (where feasible) or else ensure that the P45 has been issued by the end of the following pay period.
Commencement
Where an employee commences employment an employer should request a copy of the employees most recent P45, and then submit Part 3 of said P45 to ROS. Where no P45 Part 3 is available, the employer should submit a P46. When the employer is aware of the employee not having worked previously, they should request the employee submit a Form 12A (application for tax credits).
An employer can register an employee with Revenue via ROS, using the online/offline upload of the P45 Part 3 file, or via Post with the hardcopy P45 Part 3 or via phone, (it should be noted that Revenue will only register 3 employees at a time via the phone). Tel: 1890 -222/333/444/777 - 425 ( http://www.revenue.ie/en/contact/lo-call.html )
It is worth noting that where an employee presents a P45 from a previous year, while still technically valid for the purpose PAYE employment and notification of Revenue via the P45 Part 3; we would recommend that the employer should NOT use the Tax Allowances /USC details on this P45 as the both the PAYE and USC systems and allowances have changed substantially over the last few years. (Circumstances differ depending on the relevant tax year in question). The employer should setup the employee under emergency tax while waiting on the tax details to be issued by ROS.
Also please note while Revenue maintain that they will always provide previous employment income and PAYE/USC paid details to the employer, this is not always the case. On occasion P45 will either have the incorrect details or possible no details at all. While there is no single action that can stop this issue from arising, one of the few options (however practical it may or may not be) is to review each P2C import file against the current P45, and cross check the relevant details against each other. Where there are discrepancies you should contact Revenue.
Revenue - E-Briefs & Updated Documents
E-Briefs are Revenues way of notifying and publishing change within the operation of Revenue. The E-Briefs that relate to payroll are:
Update to the USC FAQ Guide
http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
eBrief No. 49/2012: Extended deadline for ROS Customers in respect of RACs, PRSAs & AVCs
http://www.revenue.ie/en/practitioner/ebrief/2012/no-492012.html
eBrief No. 47/2012: Extended ROS Support Opening Hours for Pay & File 2012
http://www.revenue.ie/en/practitioner/ebrief/2012/no-472012.html
eBrief No. 46/2012: ROS Pay & File Deadline 15th November 2012
http://www.revenue.ie/en/practitioner/ebrief/2012/no-462012.html
Welfare/PRSI - Updates & Publications
Welfare & Revenue Seminars on Employment Grant Schemes
http://www.welfare.ie/EN/Press/PressReleases/2012/Pages/pr261012.aspx
If you have any questions about the above feel free to email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Alternatively you could attend one of our training courses. For details of the venues and dates please contact us on 01-2101967 or via email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sincerely,
David Twomey
Payroll Matters Ltd
Tel:  01-2101967

 

In this, the last month to the run up to budget and tax year end, we have decided to review some good news and even present a few good ideas on schemes available from Revenue.

Content includes:

- Revenue's Guide to Employment Tax Incentives
- Welfares new employment Service
- End Of Year - BIK Review.

As always should you need any assistance please do not hesitate to contact us on 01-2101967.

Please note we will be hosting a series of Payroll Budget Briefings nationwide based on the changes that will be introduced in next week’s budget. Click here for more details.As always should you need any assistance please do not hesitate to contact us on 01-2101967.

Last Updated on Thursday, 06 December 2012 16:30
Read more... [November Newsletter]
 
December 2012 Newsletter E-mail

By

September/October Newsletter - Part 2
Welcome to Part 2 to of October's newsletter.
In part one we examined:
PRSI Classes - General
Revenue E-Briefs - September
PRSI / Welfare - recent updates & publications
In part two we examine
PRSI Classes Directors/Owners/Spouse/Family Members
Starters / Leavers P45 & P46
Also don't forget to check out the Welfare Section for seminars about Employment/Revenue & Welfare Schemes.
As always should you need any assistance please do not hesitate to contact us on 01-2101967.
Please note we are currently running a series of Payroll (training) Courses around the country based on the changes that have been implemented due to recent legislation changes. More training dates are available on the website (click here).
PRSI Class for Directors / Business Owners & related spouses/family
Care should be used in identifying the PRSI Class of a Proprietary Director (50% shareholder) / Business Owner and both their respective spouses and or family members.
Typically Class S has been/is used by Directors/Business owners and sometimes (to a lesser extent) for spouse of directors; however the PRSI Scope section (which is generally the deciding entity) have not issuing any rulings on the determination of a PRSI Class S since February 2011.
However in response to an inquiry we sent into SCOPE regarding Class S, the Scope Welfare Manager who responded, indicated that Class S should strictly just be used by those individuals who are self-employed and NOT by company directors. This is due to both company and also a director being separate legal entities. Although they do acknowledge that in practice this is not typically the case.
Where a spouse or family member is employed in a family COMPANY then they should be employed under PRSI class A. Where the spouse or family member is employed in a family BUSINESS (sole-trader/partnership entity) then PRSI can be allocated as Class M.
ROS / Notice to Employers for Cessation & Commencement of work
ROS has recently issued a new Notice to employers providing details with respect to starters and leavers.
Cessation
P45's (Part 1) should be issued to REVENUE "day the employee ceases to be employed immediately the employment ceases".
P45's (Parts 2,3&4) should be issued to EMPLOYEE's "on the date the employment ceases"
However it should be noted that ROS will NOT accept a pre-dated P45 file. ROS can only accept a file dated the actual date of transmission or else one with an earlier date.
In practice it is generally not be feasible to apply the above criteria where the termination date does not match or tie in with a payroll period date. Thus standard practice is to issue a P45 on the date of an employee’s date of cessation (where feasible) or else ensure that the P45 has been issued by the end of the following pay period.
Commencement
Where an employee commences employment an employer should request a copy of the employees most recent P45, and then submit Part 3 of said P45 to ROS. Where no P45 Part 3 is available, the employer should submit a P46. When the employer is aware of the employee not having worked previously, they should request the employee submit a Form 12A (application for tax credits).
An employer can register an employee with Revenue via ROS, using the online/offline upload of the P45 Part 3 file, or via Post with the hardcopy P45 Part 3 or via phone, (it should be noted that Revenue will only register 3 employees at a time via the phone). Tel: 1890 -222/333/444/777 - 425 ( http://www.revenue.ie/en/contact/lo-call.html )
It is worth noting that where an employee presents a P45 from a previous year, while still technically valid for the purpose PAYE employment and notification of Revenue via the P45 Part 3; we would recommend that the employer should NOT use the Tax Allowances /USC details on this P45 as the both the PAYE and USC systems and allowances have changed substantially over the last few years. (Circumstances differ depending on the relevant tax year in question). The employer should setup the employee under emergency tax while waiting on the tax details to be issued by ROS.
Also please note while Revenue maintain that they will always provide previous employment income and PAYE/USC paid details to the employer, this is not always the case. On occasion P45 will either have the incorrect details or possible no details at all. While there is no single action that can stop this issue from arising, one of the few options (however practical it may or may not be) is to review each P2C import file against the current P45, and cross check the relevant details against each other. Where there are discrepancies you should contact Revenue.
Revenue - E-Briefs & Updated Documents
E-Briefs are Revenues way of notifying and publishing change within the operation of Revenue. The E-Briefs that relate to payroll are:
Update to the USC FAQ Guide
http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
eBrief No. 49/2012: Extended deadline for ROS Customers in respect of RACs, PRSAs & AVCs
http://www.revenue.ie/en/practitioner/ebrief/2012/no-492012.html
eBrief No. 47/2012: Extended ROS Support Opening Hours for Pay & File 2012
http://www.revenue.ie/en/practitioner/ebrief/2012/no-472012.html
eBrief No. 46/2012: ROS Pay & File Deadline 15th November 2012
http://www.revenue.ie/en/practitioner/ebrief/2012/no-462012.html
Welfare/PRSI - Updates & Publications
Welfare & Revenue Seminars on Employment Grant Schemes
http://www.welfare.ie/EN/Press/PressReleases/2012/Pages/pr261012.aspx
If you have any questions about the above feel free to email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Alternatively you could attend one of our training courses. For details of the venues and dates please contact us on 01-2101967 or via email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sincerely,
David Twomey
Payroll Matters Ltd
Tel:  01-2101967

 

Whatever you think of Budget 2013; it seems to be hitting a lot people very hard, especially those on the lower end of the income scale.

From a Payroll Perspective there have been changes in the area of:

PAYE

  1. Tax Credits - Rent Relief has been reduced (as per Budget 2010)
  2. No other changes to T/Cr and/or SRCOP
  3. Film Relief has been extended to 2020, and will be reformed to operate on a tax credit model.

Last Updated on Wednesday, 02 January 2013 09:18
Read more... [December 2012 Newsletter]
 
Welome to the Payroll Matters Blog E-mail

Welcome to our new blog. In our upcoming posts you will find news, information and articles about payroll training and the payroll bureau. Watch this space for more posts!

 
September/October Newsletter - Part 2 E-mail

By

September/October Newsletter - Part 2
Welcome to Part 2 to of October's newsletter.
In part one we examined:
PRSI Classes - General
Revenue E-Briefs - September
PRSI / Welfare - recent updates & publications
In part two we examine
PRSI Classes Directors/Owners/Spouse/Family Members
Starters / Leavers P45 & P46
Also don't forget to check out the Welfare Section for seminars about Employment/Revenue & Welfare Schemes.
As always should you need any assistance please do not hesitate to contact us on 01-2101967.
Please note we are currently running a series of Payroll (training) Courses around the country based on the changes that have been implemented due to recent legislation changes. More training dates are available on the website (click here).
PRSI Class for Directors / Business Owners & related spouses/family
Care should be used in identifying the PRSI Class of a Proprietary Director (50% shareholder) / Business Owner and both their respective spouses and or family members.
Typically Class S has been/is used by Directors/Business owners and sometimes (to a lesser extent) for spouse of directors; however the PRSI Scope section (which is generally the deciding entity) have not issuing any rulings on the determination of a PRSI Class S since February 2011.
However in response to an inquiry we sent into SCOPE regarding Class S, the Scope Welfare Manager who responded, indicated that Class S should strictly just be used by those individuals who are self-employed and NOT by company directors. This is due to both company and also a director being separate legal entities. Although they do acknowledge that in practice this is not typically the case.
Where a spouse or family member is employed in a family COMPANY then they should be employed under PRSI class A. Where the spouse or family member is employed in a family BUSINESS (sole-trader/partnership entity) then PRSI can be allocated as Class M.
ROS / Notice to Employers for Cessation & Commencement of work
ROS has recently issued a new Notice to employers providing details with respect to starters and leavers.
Cessation
P45's (Part 1) should be issued to REVENUE "day the employee ceases to be employed immediately the employment ceases".
P45's (Parts 2,3&4) should be issued to EMPLOYEE's "on the date the employment ceases"
However it should be noted that ROS will NOT accept a pre-dated P45 file. ROS can only accept a file dated the actual date of transmission or else one with an earlier date.
In practice it is generally not be feasible to apply the above criteria where the termination date does not match or tie in with a payroll period date. Thus standard practice is to issue a P45 on the date of an employee’s date of cessation (where feasible) or else ensure that the P45 has been issued by the end of the following pay period.
Commencement
Where an employee commences employment an employer should request a copy of the employees most recent P45, and then submit Part 3 of said P45 to ROS. Where no P45 Part 3 is available, the employer should submit a P46. When the employer is aware of the employee not having worked previously, they should request the employee submit a Form 12A (application for tax credits).
An employer can register an employee with Revenue via ROS, using the online/offline upload of the P45 Part 3 file, or via Post with the hardcopy P45 Part 3 or via phone, (it should be noted that Revenue will only register 3 employees at a time via the phone). Tel: 1890 -222/333/444/777 - 425 ( http://www.revenue.ie/en/contact/lo-call.html )
It is worth noting that where an employee presents a P45 from a previous year, while still technically valid for the purpose PAYE employment and notification of Revenue via the P45 Part 3; we would recommend that the employer should NOT use the Tax Allowances /USC details on this P45 as the both the PAYE and USC systems and allowances have changed substantially over the last few years. (Circumstances differ depending on the relevant tax year in question). The employer should setup the employee under emergency tax while waiting on the tax details to be issued by ROS.
Also please note while Revenue maintain that they will always provide previous employment income and PAYE/USC paid details to the employer, this is not always the case. On occasion P45 will either have the incorrect details or possible no details at all. While there is no single action that can stop this issue from arising, one of the few options (however practical it may or may not be) is to review each P2C import file against the current P45, and cross check the relevant details against each other. Where there are discrepancies you should contact Revenue.
Revenue - E-Briefs & Updated Documents
E-Briefs are Revenues way of notifying and publishing change within the operation of Revenue. The E-Briefs that relate to payroll are:
Update to the USC FAQ Guide
http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
eBrief No. 49/2012: Extended deadline for ROS Customers in respect of RACs, PRSAs & AVCs
http://www.revenue.ie/en/practitioner/ebrief/2012/no-492012.html
eBrief No. 47/2012: Extended ROS Support Opening Hours for Pay & File 2012
http://www.revenue.ie/en/practitioner/ebrief/2012/no-472012.html
eBrief No. 46/2012: ROS Pay & File Deadline 15th November 2012
http://www.revenue.ie/en/practitioner/ebrief/2012/no-462012.html
Welfare/PRSI - Updates & Publications
Welfare & Revenue Seminars on Employment Grant Schemes
http://www.welfare.ie/EN/Press/PressReleases/2012/Pages/pr261012.aspx
If you have any questions about the above feel free to email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Alternatively you could attend one of our training courses. For details of the venues and dates please contact us on 01-2101967 or via email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Sincerely,
David Twomey
Payroll Matters Ltd
Tel:  01-2101967

 

Welcome to Part 2 to of October's newsletter.

In part one we examined:

PRSI Classes - General

Revenue E-Briefs - September

PRSI / Welfare - recent updates & publications

In part two we examine

PRSI Classes Directors/Owners/Spouse/Family Members

Starters / Leavers P45 & P46

Also don't forget to check out the Welfare Section for seminars about Employment/Revenue & Welfare Schemes.

Last Updated on Thursday, 06 December 2012 16:33
Read more... [September/October Newsletter - Part 2]
 
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