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INTRODUCTION TO PAYROLL 2018
By Noel Murphy
The following is a brief introduction to payroll including how to register the business and employees, how best to operate a payroll system and details of what Revenue returns are required.
Registering as an Employer
The first step in registering employees is to register the business as an employer. This is usually done when first registering for tax by submitting either Form TR1 (sole-traders and partnerships) or Form TR2 (companies) to the local tax district. Tax registrations are now mostly completed online using the Revenue Online Service - ROS at www.revenue.ie.
Registering as an Employee
The onus on the employer now is to advise all new employees that they need to register as employees with ROS on their own "My Account" so therefore they should provide them with the business tax registration number to do this. They will then receive their tax credits and cut-off figures.
The following Low Pay Commission recommendations were implemented from January 1 2018:
Experienced adult worker €9.55 per hour
Over 19 and less than 2 years since first job €8.60 per hour.
Over 18 and less than 1 year since began first job €7.64 per hour.
Aged under 18 €6.69 per hour
An experienced adult worker, for the purposes of the National Minimum Wage Act, is an employee who has an employment of any kind in any 2 years over the age of 18.
Of course the national minimum wage does not stop an employer from offering a higher wage.
How to calculate the hourly rate
Under the National Minimum Wage Act 2000, the basic method of calculation is to divide the gross pay by the total number of hours worked. It is necessary to note what pay is taken into account, what hours are included as working hours and what is the pay reference period i.e. over what period the calculation is made.
Monthly VAT 3 Return and payment for period February 2018 together with the Return of Trading Details where the accounting period ends in February
Bi-Monthly VAT 3 Return and payment for period January - February 2018 together with the Return of Trading Details where the accounting period ends between the 1st January and the 28th February
Annual VAT 3 Return and payment for the period March 2017 - February 2018 together with the Return of Trading Details where the accounting period ends in February
Deadline- 21 March 2018
LPT
Single Debit Authority deduction from bank account
Deadline - 23 March 2018
RCT
Return and payment for February 2018
Deadline - 31 March
2018
Income Tax
Deadline for claiming Separate Assessment for 2018
Deadline for nominating Assessable Spouse or nominated Civil Partner for 2018
Deadline - 1 - 21 March 2018
Corporation Tax
Preliminary Tax for accounting periods ending between 1-30 April 2018
First instalment of preliminary tax for "Large Companies" with a financial year ending between 1 - 30 September 2018
Returns for accounting periods ending between 1 - 30 June 2017
Pay balance of tax due on accounting periods ending between 1 - 30 June 2017
Returns of third party information for accounting periods ending between 1 - 30 June 2017
Where returns and payments for RCT, VAT, PAYE/PRSI and Corporation Tax are made electronically, the return and payment deadlines are the 23rd day of the month
