Payroll modernisation came into effect on 1 January 2019, and has modified the way employers submit their payroll information to Revenue. Some of the most significant changes are the elimination of forms such as P30, P35, P45 and P60. Payroll submissions to Revenue must be made each time a payroll is processed—whether this is weekly, fortnightly, or monthly, and must be made before payment is made to employees. Read more on payroll modernisation here.

The best way to check active employments and reallocate tax credits is through Revenue’s MyAccount service. If an employee is unable to create or login to their MyAccount, the employee helpline phone number for Revenue is: 01 7383636. Before contacting Revenue, your employee will need to make sure they have their PPS number and your employer’s PAYE registration number.

A benefit-in-kind (BIK) is a non-cash benefit (such as a company car or subsidised accommodation) that you provide to an employee. You must deduct PAYE tax, PRSI, and USC from your employee’s pay on the value of any BIK. There are complex rules around the taxation of BIK with different rules for different types of benefit. More information can be found on the Revenue website.

All employees have a basic annual leave entitlement of 4 weeks. For permanent employees with set hours, annual leave is relatively straightforward to calculate and apply. However, if your employee is on a temporary contract or works variable hours, the calculation is more complex. Information can be found here. Holiday pay should be paid at the employee’s normal rate of pay. Most employees are also entitled to paid leave on public holidays. Instead of giving employees a paid day off you can instead give an extra day of annual leave in lieu, or an additional day’s pay.

The TWSS allows eligible employers to claim a subsidy of up to 85% of employee’s average wages.  Employers must be able to demonstrate that they have lost 25% of their trade to qualify.  This subsidy can only be claimed for employees who were on employer’s payroll in February 2020.  The TWSS commenced in May and has been extended until 31 August 2020.  More information on the TWSS can be found HERE

The EWSS will replace the TWSS scheme from 1 September 2020 and will run until April 2021.  To qualify, employers must be able to show a reduction of at least 30% in turnover.  Eligible employers will receive a flat-rate subsidy of up to €203 per week per employee, including for seasonal staff and new employees. New firms operating in impacted sectors will also be eligible.  Further guidance on the operation of this scheme will be released by Revenue in the coming days.