The national minimum wage in Ireland will increase from €9.80 to €10.10 per hour from 1 February 2020 for people aged 20 years and older. This will have an impact on both PRSI and USC.
PRSI will be impacted as follows:
There will be no changes to the employee rates for PRSI.
There will be no change to the employee PRSI credit.
The PRSI employer threshold for class AX will change from €386 to €395 (weekly).
The PRSI contribution rates will therefore be as follows for private and some public sector employments:
As always, SimplePay takes the hassle out of compliance for our users. We have already made updates to the system to ensure that the PRSI calculation is correct, depending on the date of your payslip. This means that if you prepare payslips that are dated before 1 February 2020, the system will use the previous thresholds, while payslips dated from 1 February 2020 will use the updated thresholds. There is therefore no need for you to make any changes or updates on your end – you simply continue capturing payroll as usual.
The USC threshold for the 2% bracket will also change so that full-time minimum wage workers stay in the same USC bracket. This change will be reflected through changes in employee RPNs and will take effect on 1 March 2020.
For more information on PRSI and USC, check out our help pages here.
Revenue have made updates to the way agents are notified about an employer’s Statement of Account, additionally Revenue have also introduced Revenue Assessments from this year. These changes can be found in the Employer’s Guide to PAYE and are discussed below.
New procedures for agents relating to ROS Inbox Notifications
In our blog earlier this month we discussed that employers and / or agents will receive an email notification from Revenue when the Statement of Account is ready and available. Revenue will no longer be sending these Statement notifications to agents each month, this is to avoid issuing large numbers of emails to certain agents. Employers will still receive the Statement emails each month to the email address registered in ROS.
Revenue will generate the Statement of Account for every employer by the 5th of every month. Agents must ensure they check their ROS Inbox on the 5th of each month to view the monthly Statement of Account for each employer linked to them. Alternatively, the statements can be viewed by signing into ROS.
For more information on the Statement of Account and how to access it, please refer to our previous blog on the ROS Statement of Account.
Introduction of Revenue Assessment from 1 January 2019
From 1 January 2019, employers may be up for an assessment if they have not submitted a return for a month or have submitted a return which does not include the total deductions due.
In preparation for PAYE Modernisation, employers need to submit a list of employees to Revenue through Revenue’s Online Service (ROS). This will ensure that Revenue’s records are aligned with yours so that you receive the most up to date employee information for processing payroll.
SimplePay now has an option to generate this report for Revenue with all the requested information. To do this, go to Reports > ROS Employee Export.
It is important that you ensure the accuracy of the report before submitting it to Revenue. If an employee is no longer working for you but they remain active on SimplePay, you will need to end their service on the system first before downloading the report. If any information has been incorrectly captured in Basic Info, you should correct this first.
Upon submission of the list of employees, Revenue will communicate any changes to their records based on the list you provided.
If you need any assistance or have any further queries, please contact us.
A few weeks ago we sent out an email briefly detailing the General Data Protection Regulation (GDPR), which comes into force today (25 may 2018), as well as the steps being taken by SimplePay to ensure complete and timely compliance.
Privacy and security of clients’ data has always been our top priority so the system was already built based on the concept of “privacy by design”, as required by GDPR. This means we were largely compliant long before GDPR came into being. We have therefore only had to make minor tweaks to our already stringent internal and external privacy and security policies.
With that in mind, we’d like to give you a brief update on what we’ve been working on recently to meet our obligations as a Processor under the GDPR:
Conducted a gap analysis on existing policies as well as any updates required to these policies highlighted in the gap analysis
We recently informed you of SimplePay’s current data protection standards and the steps that we are taking to ensure that we are compliant with the General Data Protection Regulation (GDPR). The GDPR replaces the Data Protection Directive 95/46/EC, effective from 25 May 2018. The following is an overview of some of the changes introduced by GDPR:
Increased territorial scope, as GDPR will apply if either the controller, processor or data subject* is in the EU.
Penalties of up to €20 Million for organisations in breach of GDPR.
Consent is required for the use of personal data and this consent can be withdrawn.
Breach notifications are mandatory if a breach in data protection occurs.
Increased rights for data subjects to obtain confirmation of whether their data is being processed, where and for what purpose.
Increased rights to have personal data erased and any processing of data halted, provided that it does not go against the public interest in having the data available.
The right for data subjects to obtain any personal data concerning them, which they may transmit to another controller.
Increased requirements for system designs, where data protection should be included from the onset of the design and the design must ensure that data is only held and used if absolutely necessary.
Increased record keeping requirements with mandatory appointments of Data Protection Officers for certain types of controllers and processors.
‘controller’ means the natural or legal person, public authority, agency or other body which, alone or jointly with others, determines the purposes and means of the processing of personal data.
‘processor’ means a natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller.
‘data subject’ means a living individual to whom personal data relates.