Paycheck Plus - Making Payroll Easy

With school holidays on the horizon you might be considering employing school children or young people during the summer months. Be aware that under the Protection of Young Persons (Employment) Act 1996, if you are employing individuals under the age of 18 years there are certain statutory obligations in relation to hours of work, breaks, rest periods and payment of wages.   Although the minimum wage is being reversed to €8.65 per hour from 1st July 2011, the rate applicable to those under the age of 18 is less.

A number of these provisions however, do not apply in the context of employment of close family members. Where such family members are employed PAYE should be operated in the normal way, which involves applying to the tax office for a tax certificate for the individual concerned.

For more information contact our Payroll Team at info@paycheckplus.ie

Finally, the wait is over and the result is in!  After much debate in the Payroll sector, the Department of Social Protection announced at the IPASS Annual Payroll Conference on May 19th that Employers are not liable for Employer PRSI on the Employer contribution to a PRSA.

The employee will be liable to USC on the Employers contribution to a PRSA but not PRSI.

Save Tax as you Save The Environment:    Employees can save on PAYE, PRSI and USC under the cycle to work scheme.

The Cycle to work scheme introduced in January 2009, allows for employers to provide a new bicycle or pedelec (bicycle equipped with an auxiliary electric motor) and associated safety equipment to employees who agree to use the bicycles to travel to work. They will be treated as a tax-exempt benefit-in-kind.

This tax exemption may only apply once in every 5-year period in respect of any one employee/director. There will be a limit of €1,000 on the amount of expenditure an employer can incur in respect of any one employee/director.

The cost must be incurred directly by the employer. It is not permitted for the employee to purchase a bicycle and then seek reimbursement from the employer.

The scheme may also be implemented via salary sacrifice arrangements, whereby an employee agrees to forego part of his or her salary to cover the costs associated with the purchase of the bicycle and associated safety equipment. Where such salary sacrifice arrangements are implemented they must be completed over a maximum period of 12 months. In such circumstances, the employee will not be liable to tax or PRSI or levies on the salary sacrificed. The maximum amount of salary that can be sacrificed is €1,000.

Minimum Wage:

Employers should note that the incoming Government has committed to reversing the recent reduction in the minimum wage back to €8.65 from the current rate of €7.65.  An announcement will be made in the coming weeks.