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.
We love giving you a great payroll experience and, once again, the SimplePay team has been hard at work to respond to your payroll needs. We are delighted to introduce you to dual employment on our system.
Dual employment occurs when:
you have an employee on your payroll with two active employments AND
you want to keep the two sets of pay separate on your payroll records.
In practice, this usually means that the employee is assigned two different employee numbers and/or IDs.
SimplePay has provided better support for dual employment as follows:
To enable dual employment, there is a check box under Other Statutory Info on an employee’s Basic Info screen that says Allow Multiple Employment. Tick this checkbox to allow you to capture two employees with the same PPSN.
When adding two employees with the same PPSN without setting the checkbox, you will encounter a validation error. This is to ensure that you do not accidentally capture an employee twice on the system when it is not dual employment, but simply a duplicate.
Allowing dual employment on the system will assign different Employment Identifiers to the employee, ensuring that submissions to Revenue are reported correctly. You can read more about Employment Identifiers here.
This extended functionality of the system is also outlined on our help page here.
If you have any queries, do not hesitate to reach out to our Support team.
Simplicity forms the foundation of our company ethos. It’s in our name, in the way we conduct business and in the way we build our system. However, we realise that sometimes you have specific needs that require us to make some tweaks or expansions. With this in mind, we are happy to announce that we now support PRSI sub-classes A8 and A9 for employees employed under a Community Employment Scheme.
When adding a new employee, you will now see “A (Normal)” and “A (Community Employment)” as drop-down options for PRSI Class. There is no difference between the two PRSI sub-classes for employee PRSI contributions. However, selecting “A (Community Employment)” will impact the employer PRSI contribution. The contribution rates for PRSI can be seen here.
For more information on PRSI, head over to our help page.
As always, if you have any queries, please don’t hesitate to contact our support team.
The increase in DEASP pensions and payments announced in Budget 2019 came into effect last month. Revenue updates over the first weekend of April 2019 means that you can expect new RPNs for employees as of 8 April.
An automated update of RPN information is regularly done by the SimplePay system. However, we recommend that you do an update of RPNs before processing payroll, in case changes were made by Revenue after our automatic system update. Read more about manually updating RPN’s on our help page here.
You can read more about the DEASP pensions and payments in Budget 2019 here. Then click on Social Welfare to navigate to the relevant section.
Should you have any queries regarding the updated RPN information, you can contact Revenue’s National Employer and Employee help lines.
For any other assistance, please do not hesitate to contact our Support team.
Your first Statement of Account is produced by the Revenue computer system based on all payroll submitted with a pay date in January 2019. The Statement of Account contains a chronological list of all tax liabilities incurred, any amendments to these liabilities, all payments made in respect of these liabilities and the balance outstanding at the end of the period referred to in the statement. The Statement of Account for January will need to be submitted by 14 February 2019, with all subsequent submissions due on the 14th of the month following the payroll month.
Employers and/or agents will receive an email to the email address registered in ROS to inform you when the Statement of Account is ready and available. The statement will be stored in your ROS inbox as a .pdf document.
The ROS Statement of Account utility allows you to make payments for your returns using the following payment methods:
using your bank account
ROS debit instruction (if registered for this)
To access the ROS Statement of Account:
Log into your ROS account.
Go to My Services > Employer Services > Statement of Account.
3. Click on View/Accept
4. The statement will then be displayed.
5. Complete the Declaration and then click on Submit.
6. You will then need to sign off the submission using the password for your digital certificate.
6. You will now be able to make payment.
To learn how to make payments via the ROS Statement of Account utility, watch the video created by ROS here.
Last week, we announced the release of Phase 1 of our major PAYE Modernisation changes – uploading of ROS Authorisation Certificates, which you can read about here.
As promised, we’re pleased to inform you that today we’ve released Phase 2: bulk retrieval of employee RPNs. As with the ROS Certificates, this is an important step in ensuring you’re ready to process payroll in 2019. This short and handy guide will take you through the steps of bulk RPN retrieval.
As part of this release, SimplePay will automatically retrieve RPNs once for the 2019 tax year for all employees that have a PPSN but no RPN. This functionality will soon be expanded to provide daily automated updates.
As always, if you have any queries or concerns around this new functionality and process, please feel free to contact our friendly support team who will gladly assist.
Over the past few months, we have been discussing PAYE Modernisation on our blog. The new functionality for PAYE Modernisation will be released in stages over the next 2 weeks. We are happy to announce the first release, which allows you to upload ROS Digital Certificates to SimplePay.
If you are unsure about obtaining these Digital Certificates, please refer to this guide provided by Revenue.
This is a very important process for PAYE Modernisation and all employers or agents (such as payroll bureaus or accounting firms) will need to do this before processing payslips in 2019. Without uploading these certificates, requesting RPNs from ROS and submitting payroll information to ROS is not possible.
To help you through this process, we have compiled a useful guide which can be downloaded here:
Revenue released an end of year notice which you should have received on Friday 23 November 2018. This end of year notice serves as a reminder of the PAYE Modernisation project and its consequences, as well as some additional information and reminders that Revenue wants you to be aware of. Here is a summary of the most important parts of the notice, most of which we have already discussed in previous blog posts:
No further P2Cs will be issued from 30 November 2018. These will be replaced by RPNs from 1 January 2019.
To ensure that you are ready for PAYE Modernisation, you must ensure that you:
have registered all of your employees with Revenue,
checked you have the correct Personal Public Service Number (PPSN) for all employees. Employers can use the PPS number checker in ROS to confirm the correct PPS number for employees or pensioners,
operate the Revenue deduction instructions for each employee (on the P2C up to end-2018 and on the RPN from January 2019),
have complete payroll data, which is accurate and up-to-date,
have all required information on employee pay, including notional pay, on a timely basis and in the correct format to payroll; and
have an active ROS digital certificate on the computer you use to run your payroll.
You should review your ROS digital certificates to ensure that they have not expired.
You should review your sub-users’ digital certificate permissions for appropriate permissions.
Forms P45, P46, P30, P35 and P60 will be abolished after the 2018 tax year.
Payment due dates to Revenue remain unchanged in 2019.
USC rates and thresholds will change with effect from 1 January 2019.
For the 2019 tax year, if an employee is expected to exceed the USC threshold but their RPN states that they are USC exempt, you should advise the employee to contact Revenue to have their RPN updated.
Rates for Emergency Tax and the legal basis for applying Emergency Tax will change effective 1 January 2019.
For the 2018 tax year, employers must ensure that the correct PPSNs as per the P2Cs are used for employees.
Revenue’s 1890 LoCall phone system has been replaced by standard telephone numbers.
As you’re aware by now, it will be mandatory for businesses across Ireland to start complying with PAYE Modernisation from January 2019. Under these new processes, there will be no change to the way that PAYE is calculated, only the way that this information is reported to Revenue. Being a client of SimplePay means that you do not have to face these changes alone. After extensive research, consultations with experts and developing our plan of action, the SimplePay team continue to work hard to ensure that you will be compliant.
So what kind of changes can you expect on the system? While there may still be some tweaks and changes after our final testing phase, here is a sneak peek of some of the functionality that we have been working on:
As part of employer authentication, each employer will be given a ROS digital certificate and a password by Revenue. A new ROS Authentication page will be available on SimplePay where you can upload your certificate and view its validity.
Please note: This will work slightly differently for payroll and accounting firms that manage payroll on behalf of multiple companies, as a single agent certificate can be used for all companies. More information on this will be provided in the future.
To avoid being taxed on an emergency basis, clients previously needed to upload a P2C for an employee. With PAYE Modernisation, a P2C is replaced by an RPN. This is generated by Revenue and can be retrieved with the click of a button from the usual tax information screen on SimplePay.
The SimplePay system will regularly update the RPN information for employees automatically. If the tax information for an employee has been updated before the regular automated RPN update has occurred, you can request the system to fetch RPN information from Revenue from the same tax information screen.
The P30 will be replaced with regular online submissions for each pay period. This will still be done from the Filing section in SimplePay.
As you can see from this sneak peek, the new PAYE modernisation functions are being built with the same user-friendliness that you have come to expect from SimplePay. However, we understand that change can be overwhelming. To support you through these changes, we will be releasing a guide on how to use the new functions on the system before the changes go live. Our help site will also be updated for you to refer to should you need it.
We look forward to supporting you along this journey into a new era of modern, convenient and even simpler cloud-based payroll.