April 17, 2014

Tax Treatment - Termination Lump Sum Payments (Source: Revenue)


A revised Revenue PDF manual , consolidating all previously published material relating to the taxation of termination lump sum payments chargeable to tax under section 123 of the Taxes Consolidation Act 1997, has been issued.
 
It sets out the exemptions and reliefs that may be claimed by an individual on receipt of such a payment and includes amendments introduced in Finance Act 2013 and Finance (No.2) Act 2013 in relation to:
  1. the restriction of Top Slicing Relief for the year of assessment 2013 in respect of lump sum payments in excess of €200,000;
  2. the abolition of Foreign Service Relief with effect from 27 March 2013; and
  3. the abolition Top Slicing Relief with effect from 1 January 2014.  (Source: Revenue)
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All the best,
The Team at Jefferson

April 11, 2014

Important Notice about Illness Benefit (Source:Revenue)

For employers and pension providers...
 
Illness Benefit and Occupational Injury Benefit notification letters from the Department of Social Protection (DSP)

Revenue have instructed employers that all taxable Illness Benefit and Occupational Injury Benefit payments paid to PAYE Employees by the DSP are to be included with taxable pay. 
  • DSP notifies employers of the taxable amounts of Illness/Occupational Benefits and of any changes to these amounts.  Up to now these notification letters were posted to employers. With effect from 14 April 2014, the DSP will use Revenue’s ROS in-box facility to deliver the notification letters directly to all ROS enabled employers. This will help to ensure that employers are in a position to calculate the correct amount of tax payable in a timely manner. 
  • Illness and Occupation Injury Benefit payments are exempt from USC and PRSI.
  • All queries relating to the payments should be directed to the DSP. 
  • Full instructions regarding the taxation of Illness Benefit and Occupational Injury Benefit can be found in the Employer’s Guide to PAYE.

Taxation of Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit

  • Employers/pension providers are reminded that Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit payments paid by DSP (unlike Illness Benefit and Occupational Illness Benefit), are not to be included with pay.
  • Individuals who are in receipt of these payments and who pay their tax through the PAYE system will have their annual tax credits and cut-off point reduced by the taxable amount of these payments. Employers/pension providers are advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2Cs).
  • Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit are exempt from USC and PRSI.
  • Full instructions can be found in the Employer’s Guide to PAYE.
P30/P35 Local Property Tax (LPT) employee deduction at source
  • Where Employers receive instruction by way of a P2C to deduct LPT in respect of an employee, they (the employer) must deduct this amount and submit it on the P30. Failure to act on the Revenue instruction may, in addition to being held liable for the amount due, lead to enforcement action, the imposition of a penalty and/or prosecution. Employers must also return details of the amounts deducted on the annual P35 declaration as well as the individual employee amount on the P35L.
  • When filing the P35 Return, employers are reminded that they should use the most up to date version of the Return in ROS.
The Employer Customer Service Unit provides information and support to employers.
Contact details as follows: Telephone: 1890 25 45 65 (+ 353 67 63400 if ringing from outside the Republic of Ireland) E-Mail: employerhelp@revenue.ie (Source:Revenue)

February 10, 2014

A warning in relation to SEPA Payments...


A new era began this month with the introduction of SEPA across Europe and although an extension has been provided to allow some countries and companies finalise their preparations Jefferson Payroll has kept to the original target date of 1st February 2014.

A warning however...
While SEPA will introduce great benefits to all e.g., cross-border payments, it has affected when funds are reported or lodged to individual accounts (certainly in Ireland). 

Consequently, employees may receive payment to their bank accounts later in the day than they did in the past. 

The timing of credits to accounts varies across banks but we have been informed that funds will usually be available before lunchtime and will definitely be available by close of business on the payment date.  This is despite employers (or payroll bureaus) uploading the bank payment file within the deadlines provided.  If you have any queries regarding this, you should speak with your bank directly. 

Jefferson Payroll are now live for SEPA with the following institutions:

  • AIB
  • BNP (Banque National de Paris)
  • Danske Bank
  • BAML (Bank of America / Merril Lynch)
  • Barclays Bank
  • Ulster Bank (RBS)
  • HSBC


In the case of BOI (Bank of Ireland) they are carrying out the SEPA conversion for now and we will keep you updated on their SEPA readiness.

File Only Banks
Jefferson can provide you with SEPA format files only, if you bank with JP Morgan Chase or Citi. You must upload them on your software as neither these banks have a bureau facility for us to upload on your behalf.

Bank Charges
In addition, and as part of SEPA roll out, it is a requirement that bank charges in respect of cross-border payments (up to €50,000) to other member states shall be the same as the charges for corresponding national payments.

If you have a large number of European employees in your company we would be happy to talk to you about your payroll and SEPA payment requirements.

For regular tips, tricks and payroll info:

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All the best,
The Team at Jefferson

February 5, 2014

8 tips for returning a hassle-free P35...



With the PAYE P35 deadline in Ireland fast approaching, below is a useful check list to help you with your P35 return via ROS (Revenue Online Service) to Irish Revenue:
  1. Check that all employees being returned have a PPSN (Personal Public Service Number) - if they don’t you should have a date of birth & home address for them)
  2. Validate your payroll(s) for re-hires to ensure accurate reporting of “This Employment” figures under the PAYE registration for the tax year.
  3. Ensure your payslip history plus any “This Employment” adjustments (as per above) for the year add up to your P35
  4. Check that totals for Pension, PRSA, Illness Benefit and Medical Insurance BIK are output to the P35 file and are a true reflection of what was processed through payroll
  5. Carry out a P35 upload on the ROS test site to eliminate any validation problems early
  6. Check P30 payments made correspond to P35 file you are uploading
  7. If uploading multiple P35 files in respect of a single PAYE registered number upload these at the same time from the same machine
  8. Save down the confirmation receipt for your records
For regular tips, tricks and payroll info:

You can get automatic updates to this blog by entering your email on the right hand side, following us on Twitter (@jpireland), via our Facebook pageGoogle+ or our LinkedIn Company Page

All the best,
The Team at Jefferson

December 20, 2013

Happy Christmas - get your free 2014 payroll desk calendar

All the staff at Jefferson Payroll would like to wish everyone a very Happy Christmas and prosperous New Year.

If you would like a FREE copy of a very useful 2014 payroll desktop calendar with the important dates highlighted, email webmaster [at jefferson [dot] ie with your name and company address and we will post one out to you.

(All Jefferson clients will automatically get a calendar so no need to request here) 

We look forward to working with you in the 2014.


From all the staff at Jefferson Payroll


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November 27, 2013

Happy Thanksgiving




"To speak gratitude is courteous and pleasant, to enact gratitude is generous and noble, but to live gratitude is to touch Heaven."  

~ Johannes A. Gaertner





Happy Thanksgiving to all our American friends, clients and business partners - enjoy the celebrations tomorrow (Thursday 28th November 2013)

From all the staff at Jefferson Payroll

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November 12, 2013

SEPA Migration Update


As we head towards 2014, our SEPA migration is well on target.  

To update you, this is where we stand:

The Banks:
  • AIB:  Fully tested and Jefferson has gone SEPA live since October 2013
  • BNP:  Fully tested and Jefferson has gone SEPA live in November 2013
  • Danske Bank:  Fully tested Jefferson has gone SEPA live in November 2013
  • Bank of America:  Testing to take place in Q4 2013 – date to be confirmed by BAML
  • Barclays:  Testing to take place in Q4 2013 – date to be confirmed by Barclays
  • HSBC:  are meeting clients directly to discuss options. Testing to take place in Q4 2013 – date to be confirmed by HSBC
  • Ulster Bank:  Testing to take place in Q4 2013 – date to be confirmed by Ulster Bank
  • Bank of Ireland*:  All details below:
*We understand that there is unlikely to be a new BOI system in place this year for payroll companies to upload SEPA/XML files to BOI.  

Therefore from 11th November 2013 BOI will convert Standard 18 bank files to XML on your behalf – you should have received a SEPA Credit Transfer Conversion Form for completion from BOI requesting authorisation to do this. 

Please contact the BOI SEPA Team on 1890 818208 to help you complete this form. 

Once this form has been completed Jefferson can continue to upload bank files on your behalf for Domestic Bank Accounts only.  We will keep you updated of any further news from BOI. Should you have a requirement to make payments to bank accounts outside of the Republic of Ireland from 1st February 2014 please contact your BOI branch to discuss further.

Next steps:

Please note the following carefully:
  1. Bank cut-off requires that files be uploaded to the bank at latest by 3pm two working days prior to pay date. This is in line with existing Jefferson procedures.
  2. While we will be using XML format with some banks in 2013 we will only begin accepting foreign bank accounts from January 2014. 
  3. Once we go live with your bank, your EFT Control Report will be replaced by a SEPA Credit Transfer Report .
  4. We will keep you updated  between now and February 2014 with regard to the progression of SEPA testing with the banks.
What you need to do:
  • BOI customer should complete the SEPA Credit Transfer Conversion Form
  • All clients should continue to approve your payroll and bank file no later than 3pm two working days before pay day
  • Ensure you continue to provide BIC & IBAN formats only to payroll on the in the Jefferson format required (that was issued to you previously)
Thanks for your attention on this matter.    Any queries on SEPA can be directed to sepa [at] jefferson [dot] ie 

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All the best,
The Team at Jefferson 



November 8, 2013

Winner alright...

Well done to M.Doherty on winning the iPad Mini in October and big thanks goes out to all our clients who completed the Continuous Improvement Survey.   
Your feedback is integral in helping us deliver you 
payroll service excellence, while driving payroll software development and service innovation for the future. 

More chances to win in 2014.  Once again, thanks to everyone who participated.


Being presented with her prize by Jefferson's Sales & Marketing Director, Marc Whitney
Stay Informed

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All the best,
The Team at Jefferson 

August 16, 2013

AIB & Control Limits

If you are an AIB business customer, it is important to note that AIB have control limits on payroll transactions if using the SEPA XML file format.  This control limit represents the maximum cumulative value of salary payments that can be processed per Original Identification Number (OIN) on a daily basis. The limit is based on the maximum salary payment file submitted over the past 12 months plus a 20% buffer.
 
Increasing Control Limits

The process for getting a control limit raised varies depending on the type of nominated account linked to the OIN.  If the account is based on the available balance, then the process is very straight forward and involves you contacting your AIB Relationship Manager and requesting the limit be raised. The process is fast and can be turned around within a day.

If the account is based on ledger balance the same process applies (i.e. you should contact your AIB Relationship Manager) but due to a more stringent approval process it can take up to a week to have a limit approved and raised.

Jefferson Payroll and SEPA


Jefferson will commence bank testing ahead of the February 2014 deadline from September 2013, meaning we’ll be fully SEPA compliant well before the February 2014 cut-off. If you are a Jefferson client and have any queries relating to SEPA please contact the Jefferson SEPA Team at sepa [at] jefferson [dot] ie.   

For queries on the control limits, please contact your AIB Relationship Manager.

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July 29, 2013

SEPA - The status of the banks


At Jefferson Payroll our software is SEPA READY.  The majority of account details held on our system have been successfully converted to the appropriate BIC & IBAN codes and we are now only accepting BIC & IBAN format for any new hires on your payoll. 

What about the banks?

Not all the banks are ready for SEPA XML testing yet.  As we have been working closely with them to ensure a smooth transition, we can provide you with the latest status of each bank as follows: 
  • AIB – accepting test XML files
  • Ulster Bank – will begin acceptance of test XML files in Q4
  • Barclays - will begin acceptance of test XML files in Q4
  • Danske Bank - accepting test XML files
  • BNP - accepting test XML files
  • HSBC - will begin acceptance of test XML files in Q4
  • BOI – Not yet confirmed 
Our own SEPA testing of XML files will begin with the banks over the next few weeks (where available) and transition to the SEPA payment method should be available to you from around October / November.

You can get automatic updates to this blog by entering your email on the right hand side, follow us on Twitter (@jpireland), via our Facebook page or Google+ 

All the best,
The Team at Jefferson