Welcome to our monthly newsletter, TOPICS.
This month it includes the following Topics:-
- PAYE Modernisation – A Summary
- Tax Topics
- Minimum Wage from 1st January 2019
- Employers Obligations
- Company Secretarial Matters
PAYE Modernisation – A Summary
I refer to previous ‘Topics’ and emails.
PAYE Modernisation was introduced on 1st January 2019. Below is a summary of points for employers and employees
- Ensure all employees are registered with Revenue with correct spelling of names addresses etc
- When processing payroll follow the steps below
- Retrieve Revenue Payroll Notifications (RPNs) from ROS for your employees (formerly P2C)
- Send online ‘Payroll submissions’ to Revenue on or before payment to employees
- Revenue will respond to the above with a summary of all employees pay and tax deductions
- Once reports submitted to Revenue, they will issue bill for taxes payable
- Payments of employees will not alter in terms of due dates and method of payment
- However Revenue have introduced a variable direct debit method to match the amount due from the weekly / fortnightly/ monthly ‘Payroll submissions’ sent to them by employers. See link below.
- Employees will need to register for ‘My Account’ with Revenue so they have live access to their tax affairs including viewing weekly / monthly reports submitted by employer.
- Employees will be responsible to ensure their correct tax & USC bands / credits are registered with Revenue
- No P60 / P45 will be issued by employers to employees after 2018 tax year.
- Further to Budget 2019 the Finance Bill 2018 includes the following tax provisions:-
- Extension of Benefit in Kind (BIK) exemption on electric vehicles with an original market value (OMV) of up to €50,000 to 31 December 2021.
- The weekly income threshold for the higher rate of employers PRSI will increase from €376 pw to €386 pw.
- Rent -a- Room relief will not apply to short term lettings, a minimum rental of 28 days is required.
- ‘Self assess’ basis introduced for Employment & Investment Incentive Scheme (EIIS). Relaxation of conditions for investors in small companies.
- Increase in maximum value of shares in Key Employee Engagement Programme (KEEP) to €100,000 in any one year and €300,000 in all years of assessment OR 100% of annual emoluments in year option granted.
- Start up Exemption for Entrepreneurs (SURE) extended to 2021.
- If you are interested in starting your own company, you maybe entitled to a tax refund of up to 41% of capital invested under SURE.
- Three Year Start up exemption to Corporation tax extended to 2021. The relief is linked to Employers PRSI . Maximum relief of €5,000 per employee. Full relief where Corporation tax under €40,000 pa.
- New valuation date for Local Property Tax (LPT) from November 2019.
- The VAT rate on tourism activities increased to 13.5% (from 9%) from 1st January 2019.
- The VAT rate on e-books and electronically supplied newspapers reduced to 9% (from 23%) from 1st January 2019.
Minimum wages rates from 1st January 2019
These are the Minimum Wage Rates that apply in Ireland from 1st January 2019
- Experienced adult worker – €9.80 per hour
- Aged under 18 – €6.86 per hour (70%)
- First year from date of first employment aged over 18 – €7.84 per hour (80%)
- Second year from date of first employment aged over 18 – €8.82 per hour (90%)
Further information from the link below:
An employer is responsible for ensuring that their employees receive certain basic employment rights.
The main obligations include:
- To only engage employees who have permission to work within the State.
- To ensure that they provide employees with a written statement of terms and conditions of employment.
- To give employees a written statement of pay or ‘payslip’.
- To pay employees not less than the statutory minimum wage rates.
- To comply with the maximum working week requirements.
- To provide breaks and rest periods during working hours.
- To give annual leave from work.
- To give a minimum amount of notice before termination of employment.
- To maintain records in relation to their employees and their entitlements.
Below is a link for more information:
Company Secretarial Matters
- Beneficial Ownership Register to be maintained of owners or control more than 25% of shares or voting rights. Register to be filed with Companies Registration Office (CRO).
- One Director companies still need a separate Company Secretary.
- Consideration putting Shareholder agreements in place?