Friday, 26 October 2012 10:34
Welfare New employment scheme
The Department of Social Protection has launched a new Employment Service they call "Intreo". It is described as a single point of contact for all employment and income supports.
The range of services are provided at no cost to employers and include:
Employment support and advice on a National and European level, giving you access to skilled, job ready candidates. The Jobs Ireland employment service is an excellent support resource when your company is recruiting - both now and in the future.
(As per www.welfare.ie)
Benefit In Kind - POST EOY Review
Benefit in Kind is often setup in January on the assumption of what happened last year will happen again this year. While this is often the case, there will come a time at some point when a change has occurred.
Typically this may be a change in employment, a change in the role of the employee, or a change in the type of BIK item. All of these changes happen over the course of the year and often enough just seem to be a natural part of life, but unfortunately it can also mean that full impact of the changes are not fully realised till to late.
So that said, now is time to review your BIK items to ensure that the correct values have been applied and to make the changes where necessary. Revenue will expect the Employer to be on top of all relevant changes and to ensure the correct balance is being charged and recorded for the purpose of BIK.
So with that in mind it may be worthwhile to consider the following:
CARS - check to ensure the mileage/kilometres that are assumed to be Business Mileage has been recorded accurately and thus ensuring there is no under/over payment of BIK. Also check to ensure the correct Original Market Value is being applied.
Medical Insurance - check to ensure you have recorded the actual value paid by the employers. Remember premiums often change during the year. Also the employer is required to Gross-up any Tax Relief at Source values (TRS typically 20%), and pay this value to Revenue via the company Corporate Tax (CT) returns. This total combined value (Value paid to the medical insurance provide and also the TRS Gross-up) is the basis for the BIK liability.
Other Items - all assists or payments made to or on behalf of an employee are liable for BIK. Check to ensure all values have been recorded accurately and provided for in the relevant BIK calculations.
Where there is an undercharge of BIK, the employer is bound by Revenue Regulation to discharge the full value of the BIK on behalf of the employee by way of "BIK Shortfall Loan". This loan in turn needs to be reimbursed by the employee to the employer by the 31st March in the following tax year in order to ensure that there are no further BIK liabilities.
If you have any questions about the above feel free to email me at firstname.lastname@example.org. 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 email@example.com
David Twomey, CTA, BA(BIM)
Payroll Matters Ltd
|Last Updated on Thursday, 06 December 2012 16:30|