Please note that all companies paying employees via bank files must insure that they are SEPA compliant by 1st February 2014. SEPA (Single Euro Payments Area) is a European wide initiative in response to the drive for a Single Internal Market. When implemented in 2014, it will mean a common way of processing electronic credit transfers, payments and direct debits. It will be based on international standards. Thirty two European countries have agreed to participate.
Under SEPA, borders between the participating states will be removed for payments processed in euro. Payment costs will reduce and there will be greater certainty about the timing and delivery of payments.
SEPA will present opportunities to Irish companies by making it easier to conduct trade across Europe. In order to benefit from this new regulation it is necessary to make some changes.
The principle changes that you will see are:
·The use of BIC and IBAN instead of the current national sort code and 8-digit bank account number
·Bulk payment files will be in a new format which is known as ISO 20022 XML
·Mandate management is the responsibility of the originator (Creditor)
Related Article: Introduction to Payroll