Payroll 2018

The following is a brief introduction to payroll including how to register the business and employees, how best to operate a payroll system and details of what Revenue returns are required. Registering as an Employee The first step in registering employees is to register the business as an employer. This is usually done when first registering for tax by submitting either Form TR1 (sole-traders and partnerships) or Form TR2 (companies) to the local tax district. Tax registrations are now mostly completed online using the Revenue Online Service – ROS at www.revenue.ie. Registering as an Employee The onus on […]

Minimum Wage 2018

The following Low Pay Commission recommendations were implemented from January 1 2018: Experienced adult worker   €9.55per hour Over 19 and less than 2 years since first job   €8.60per hour. Over 18 and less than 1 year since began first job   €7.64per hour. Aged under 18   €6.69per hour An experienced adult worker, for the purposes of the National Minimum Wage Act, is an employee who has an employment of any kind in any 2 years over the age of 18. Of course the national minimum wage does not stop an employer from offering a higher wage. How to calculate […]

EMPLOYEES ANNUAL TAX FREE €500 BONUS

Employers can reward employees under the Small Benefits Exemption Scheme with a non-cash bonus of up to €500 completely tax free this year 2017. If guidelines are followed neither the company nor the employee will pay PAYE, PRSI or USC with a potential saving of over €650. To qualify for the tax exemption, only one tax-free bonus may be paid to each employee in any one year. If more than one bonus is given in a year, it is only the first one that will qualify for tax-free status, even if this bonus is less than […]

TAX TREATMENT OF TERMINATION PAYMENTS

Termination Payments Tax Treatments

Are you AN EMPLOYEE leaving your current employment? Are you in receipt of a lump sum from your employer? Or are you AN EMPLOYER making a termination payment to a staff member or a group of staff?  Do you know how to process these payments correctly through your payroll and avoid costly mistakes?  Are you aware of the appropriate tax treatment of same? The calculations of the exemptions and reliefs relating to termination payments can be complex and detailed.  We can guide you through the options and help you structure any termination payments in an efficient […]

REVENUE’S NEW JOBS AND PENSIONS ONLINE SERVICE

Revenue’s new Jobs and Pensions online service allows employees register their new job (or private pension) with Revenue. A tax credit certificate will then issue to both the employer (P2C) and employee ensuring that the employer can deduct the correct amount of tax for that job (or pension). The Jobs and Pensions service replaces Form 12A, so employees must register their first job using this service. The service is also for employees who are: changing jobs where the previous job has been ceased on Revenue records (when the employee signs into the service they will see […]

Tax Deadline Day Looming!

The pressure’s on for everyone under self-assessment with the tax return filing and payment deadline at the end of this month. What does this mean for you? Your tax return must be filed by October 31st Any balance of tax due for 2015 must be paid by October 31st Preliminary tax for 2016 must be paid by October 31st File your return If you’ve not already prepared and submitted your tax return you need to get this organised straight away. Filing a tax return late will lead to a late submission surcharge, and the amount increases […]

How to get a PPS number

If you have a job offer or are thinking of moving to Ireland to work you’ll soon become aware of the importance of having a PPS number. The tax system in Ireland works by taxing your entire income at particular rates. You need to apply for credits that will reduce the amount of tax deducted. To do this, when you start your first job in Ireland you’ll need to complete and sign a Form 12A (available from revenue.ie). But, in order to have the form accepted by Revenue you’ll need to have a PPS number. A […]

Save Tax – Benefit In Kind Exemption For Travel Passes

For some years an exemption has been available where an employer can purchase a bus, rail or ferry pass for an employee under an approved salary sacrifice arrangement. The exemption means that no tax is payable on the benefit-in-kind. Recently Revenue issued a clarification to show that an employee can enter into one of these salary sacrifice arrangements, with their employer’s agreement, more than once a year and the exemption will still apply. Remunerating staff in a tax-effective manner can make a difference in attracting and retaining good quality employees. So, where you have staff commuting […]

Revenue Powers to Estimate PAYE Due from Employers

If the Revenue has reason to believe that an employer has understated or not declared PAYE then they have the power to make estimates of the tax due. These can be monthly or yearly estimates. When Would The Revenue Decide To Issue An Estimate? Generally speaking the Revenue can do so if it has any reason to believe that the total amount of tax that an employer is liable to remit under the PAYE regulations is greater than the amount actually remitted. In practice this usually boils down to 2 scenarios: The employer has failed to […]

Benefits In Kind Targeted By Revenue

Directors who have not paid benefit in kind (BIK) tax on company loans are currently being targeted by the Revenue Commissioners. This can result in substantial tax liabilities as the Revenue are also applying interest of 13.5% on the loans when they are calculating the BIK tax payable. And penalties and interest could more than double the amount due. It currently appears, if directors make a BIK declaration before a Revenue Audit is notified, penalties and interests may not be applied. Any BIK tax due may be levied on the individual director involved if the company […]

Page 1 of 212