Glossary of Payroll Terms
AEO – Attachment of Earnings Order.
ARTC – Age-Related Tax Credit.
ASC – Additional Superannuation Contribution.
AVC –Additional Voluntary Contribution – a voluntary contribution made by an employee to a pension scheme, in addition to any standard contributions provided for in the contract of employment.
APSS – Approved Profit Sharing Scheme.
BIK – Benefit In Kind – a benefit from an employer in a form other than a monetary payment (e.g. car, health insurance payment, hampers, etc.). BIK’s are subject to PAYE and USC and PRSI by both employee and employer. The employer is obliged to quantify the value of a BIK and subject it to PAYE, USC, and PRSI through the Payroll system.
COP – Cut Off Point.
DBEI – Department of Business, Enterprise and Innovation.
DEASP – Department of Employment Affairs and Social Protection.
DETE – Department of Enterprise, Trade and Employment.
DJEI –Department of Jobs, Enterprise & Innovation.
DSP – Department of Social Protection.
EAT –Employment Appeals Tribunal.
EEA – European Economic Area.
Form TRS 1 – Tax Relief at Source – Tax Relief on mortgage interest may be claimed by completing a form TRS1. The relief will then be granted by the Mortgage provider through reduced mortgage payments. Similarly, relief may be granted by providers of Medical Insurance at source for medical insurance premiums paid by individuals in respect of themselves, their spouse, children, and dependant relatives. www.revenue.ie/forms/trs1.pdf.
Gross Pay –Gross pay is the employee’s total pay including the notional value of BIK before any deductions are made by the employer.
Income Tax Year –The income tax year is based on the calendar year 1st January to 31st December.
LRC –Labour Relations Commission.
LPT –Local Property Tax.
Med 2 – Tax relief can be claimed for dental expenses by completing a Form Med 2. www.revenue.ie/forms/med2.pdf
MyAccount – Using a single login and password this allows you access to Online Revenue services for PAYE taxpayers.
NERA –National Employment Rights Authority.
Net Pay –The amount of money due to an employee after all deductions have been made.
Notional Pay – the term used to describe the monetary value of a BIK (Benefit In Kind), which is included in an employee’s gross pay for calculation of PAYE, PRSI, and USC.
P21 – Balancing Statement – an employee can request a statement of earnings and tax for the year from Revenue.
PSR – Payroll Submission Request – Employers will submit payroll data to Revenue each pay period.
PAYE – Pay As You Earn – the tax payable on income earned as an employee. Employers are obliged to calculate and deduct PAYE due from the wages or salaries of their employees through the payroll system as they are paid.
Payroll Submission – Employer’s return of pay and statutory deductions (for each employee)l
PHI –Permanent Health Insurance.
PPSN – Personal Public Service Number – issued by an individual’s local Social and Family Affairs Office. Since 1971 every individual born in Ireland is allocated a PPS number at birth.
PRSA –Personal Retirement Savings Account.
PRSI – Pay Related Social Insurance – another tax payable by both employer and employee administered by the Department of Social & Family Affairs. The rate of PRSI payable depends on the personal circumstances of the individual and the amount of earnings.
RAC –Retirement Annuity Contract (private pension).
Reckonable Earnings –For the purposes of employee PRSI, reckonable earnings is an employee’s gross pay including the notional value of any BIK less any Revenue approved salary sacrifice. For employer PRSI purposes, reckonable earnings are reduced by the amount of PRD payable by public servants and by the amount of any share remuneration received by an employee.
ROS – Revenue On-Line System – a means to conduct transactions with the Revenue through the internet.
RPN – Revenue Payroll Notification – this replaces the tax credit certificate (P2C). Employers will be able to request an RPN from Revenue directly through the payroll software, which will allow instant access to changes to an employee’s tax credits.
Schedule E Expenses – expenses that are wholly, exclusively and necessarily incurred in the performance of an employee’s duties. Tax Relief may be granted on Schedule E expenses.
SCSB –Standard Capital Superannuation Benefit.
SRCOP – Standard Rate Cut-Off Point – the amount of income that is liable to tax at the standard rate of 20%. Any income in excess of the SRCOP will be liable to tax at the higher rate, currently 40%.
Tax Credit Certificate – The employee’s personal copy of their tax credit and USC.
Taxable Pay –An employee’s gross pay less certain deductions approved by Revenue which are allowable for tax purposes, such as contributions to a Revenue approved Pension Scheme, PHI Scheme or deductions under an approved Salary Sacrifice Arrangement.
TDC – Tax Deduction Card.
USC –Universal Social Charge.
WRC – Workplace Relations Commissions.