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October 2, 2024

eBrief No: 206/24 Guidelines on PAYE Assessments

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-2062024.aspx confirms that the Guidelines on PAYE Assessments has been updated to reflect the new statutory time limit on the making or amending of PAYE assessments by Revenue on employers. Since 1 January 2024, Revenue are time bound in the making or amending of PAYE assessments to 4 years commencing at the end of the year following the year in which the income tax month falls.  For example, an assessment in respect of the income tax month of February 2024 would only be permitted to be made up to 31 December 2029, subject to certain exceptions. 

eBrief No: 204/24 Health Expenses – Qualifying Expenses

This eBrief  https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-2042024.aspx  confirms that the Health Expenses Tax and Duty Manual has been updated to: 

  • Confirm that chargeable persons in receipt of PAYE income may avail of the real-time tax relief in respect of health expenses and nursing home fees.  
  • Reflect the updated flat rate amounts allowable in respect of kidney patients and children with life threatening illnesses.  

eBrief No: 203/24 Incapacitated Child Tax Credit

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-2032024.aspx   confirms that the Incapacitated Child Tax Credit manual has been updated to remove references to specific medical conditions. 

eBrief No: 201/24 Employers’ Guide to PAYE from January 2019

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-2012024.aspx confirms that the Employers’ Guide to PAYE has been updated as follows:  

  • Removal of content that is included in other manuals,  
  • Updated list of those who can submit a paper application to register as an employer, 
  • Updated contact information for Revenue offices, 
  • Details of employer obligations under Enhanced Reporting Requirements (ERR),  
  • Updated guidance in relation to service charges (tips) paid out by/on behalf of an employer,  
  • Updated guidance in relation to annual membership fees paid to a professional body, 
  • Notification regarding the eSARP portal available on ROS,  
  • Detailed guidance in relation to employer obligations throughout the tax year, and 
  • Updated examples throughout the manual. 

Note: IPASS has compared the current version of the Employers’ Guide to PAYE against the previous version, and we don’t see any significant change in the guidance in relation to tips or annual membership fees paid to professional bodies.  

eBrief No: 200/24 Members of State and State Sponsored Committees, Boards, Commission and other Bodies

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-2002024.aspx confirms that this Tax and Duty Manual has been updated to reference the Revenue Guidelines for Determining Employment Status for Taxation purposes. 

eBrief No: 194/24 Revenue Guidelines for Determining Employment Status

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1942024.aspx confirms that a number of Tax and Duty Manuals have been updated to reflect the new guidelines for Determining Employment Status issued by Revenue to reflect the recent Supreme Court judgement in the Karashan (Midlands) Ltd (t/a Domino’s Pizza) case. 

eBrief No: 193/24 Foreign Pension Lump Sums

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1932024.aspx confirms that this Revenue Tax and Duty Manual has been updated to confirm that: 

  • The tax-free amount available on a foreign pension lump sum, should take into account the value of all foreign lump sum payments paid since 1 January 2023, whether or not such payments were chargeable to Irish tax.  
  • The value of a foreign pension arrangement is not taken into account for the Standard Fund Threshold (SFT) purposes.  

eBrief No: 192/24 Share Schemes

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1922024.aspx confirms that Chapter 12 of the Revenue Share Schemes Manual (Save As You Earn Schemes) has been updated to reflect the changes introduced in the Finance Act 2023. Generally, if an employee exercises an option under an SAYE scheme less than 3 years after they were granted, the options automatically become unapproved share options. Since 1st January 2024 any gain realised under an unapproved share option is taxed through payroll. 

eBrief No: 189/24 Special Assignee Relief Program (SARP)

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1892024.aspx confirms that the SARP Tax and Duty Manual has been updated to confirm that SARP relief should not be incorporated into a re-gross calculation for an employee who is not tax equalised, which corresponds to the re-grossing position of tax equalised cases. SARP relief can only be applied to the amount of income after the re-grossing has been carried out.   

eBrief No: 185/24 Rate of Tax at which repayments are to be made

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1852024.aspx confirms that this Tax and Duty Manual has been updated to reflect the 2024 rate bands and tax credits. 

eBrief No: 183/24 Tax Equalisation Arrangements

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1832024.aspx confirms that this Tax and Duty Manual has been updated to reflect the changes pertaining to 2024. Employers are required to ensure that payroll submissions under shadow payroll arrangements are accurate and reviewed for accuracy on an ongoing basis. 

eBrief No: 181/24 Schedule E Basis of Charge

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1812024.aspx confirms that this Tax and Duty manual has been updated for ease of reference, starting with the most up to date guidance.  

eBrief No: 179/24 Returns by Employers in Relation to Reportable Benefits – ERR

This eBrief https://www.revenue.ie/en/tax-professionals/ebrief/2024/no-1792024.aspx confirms that the ERR Tax and Duty Manual has been updated to confirm that Revenue will continue to support employers and agents who are making genuine efforts to comply with their ERR obligations and they will not seek to apply penalties for non-compliance during the remainder of 2024.  

From 1 July 2024, there is a firm expectation that all employers providing reportable benefits take reasonable steps to ensure that they are complying with the new reporting obligations. It is expected that any employer who commences filing an ERR submission after 1 July 2024 will be expected to backdate its filings to 1 July 2024.  

Department of Social Protection

Auto-Enrolment

The Automatic Enrolment Retirement Savings System Act 2024 https://www.irishstatutebook.ie/eli/2024/act/20/enacted/en/print was signed by the President on the 9 July 2024, but is subject to a Commencement Order.  

While the Department has indicated that they are preparing for Auto-Enrolment to commence in Quarter 1 of 2025, it should be noted that as of yet, the Department has not engaged in any meaningful way with payroll software developers regarding the impact AE will have on payroll software. The Payroll Software Developers Association has concerns that the suggested commencement date does not allow sufficient time for payroll software to be developed, tested, and quality assured as the Department has not yet released any business rules, technical specifications, test environments or pilot strategy.  

The Act provides for the establishment of An tÚdarás Náisiúnta um Uathrollú Coigiltis Scoir (National Auto-Enrolment Retirement Savings Authority (NAERSA)) which will be responsible for the administration of Auto-Enrolment (AE).  

NAERSA will: 

  • Decide which employees should be enrolled and inform employers via an Auto-Enrolment Payment Notification (similar to an RPN).  
  • Collect contributions from employers and the State and distribute them to Registered Providers for investment.  
  • Operate an online portal where employees can log into their account, see their account balance, and make decisions such as opting out.  
  • Provide printed statements to those who do not have digital access. 
  • Facilitate the ‘pot-follows-member’ approach whereby employees will have only one account with NAERSA over their working life.  

AE for Employees

  • Employees aged between 23 and 60 years, who earn more than €20,000 a year across all employments, and who are not currently a member of an occupational pension, PRSA, PEPP, or RAC, will be automatically enrolled in the AE scheme.  
  • Employees outside the earnings and age brackets, who are not a member of a workplace pension scheme or PRSA, may opt into the scheme.  
  • Eligible employees will be enrolled in the scheme for the first 6 months. There will be a 2-month window during month 7 and 8 where employees can opt out. 
  • Employee contributions will start at 1.5% of the gross pay in year 1. They will increase to 3% in year 4, 4.5% in year 7, and 6% in year 10.  
  • In month 7 and 8 following each rate increase, employees will also be able to opt out.  
  • Employees who opt out will receive a refund of their employee contribution. The employer contribution and State contribution will remain in the pot.  
  • Employees will be able to suspend their contributions at any time outside of the 6-month mandatory participation period. 
  • Every €3 an employee contributes will be matched by an employer contribution, and the State will also top-up by a further €1. Employer and State contributions will be capped at an upper earnings limit of €80,000 per year.  

AE for Employers

  • Employers will be informed by NAERSA about eligible employees who must be enrolled (i.e. those employees for whom there is no employee or employer pension, PRSA, PEPP or RAC contributions being recorded on a Payroll Submission to Revenue).  
  • While contributions will be calculated based on the employee’s gross pay, they will be deducted from the employee’s net pay.  
  • Employers will be required to match the employee’s pension contribution, subject to an upper earnings limit of €80,000.   
  • Employer contributions will be deductible for income tax/corporation tax purposes. 
  • Employers who fail to meet their obligations will be subject to penalties and possible prosecution. 
  • Employers cannot penalise or threaten to penalise their employees for exercising their right to participate in auto-enrolment. 

PRSI Increases

The Social Welfare (Miscellaneous Provisions) Act 2024 https://www.irishstatutebook.ie/eli/2024/act/24/enacted/en/index.html was signed on 15 July 2024 and provides for the following increases in all PRSI rates for all PRSI classes, with the exception of PRSI Class M (Exempt) and the employee contribution payable under Class J (0%), from 1 October 2024:  

Year  | Increase
1 Oct 2024  | 0.1%
1 Oct 2025  | 0.1%
1 Oct 2026  | 0.15%
1 Oct 2027  | 0.15%
1 Oct 2028  | 0.2% 

The threshold for the higher rate of Employer PRSI under Class A will increase from €441 per week, €882 per fortnight, €1,911 per month to €496 per week, €992 per fortnight and €2,149 per month.  This will ensure that employers will only be liable to pay the lower rate of 8.9% Employer PRSI in respect of any employee working up to a 39-hour week on the national minimum wage. 

For Class S contributions payable by self-employed, voluntary and optional contributors, and for Class K payable on the unearned income of an employee who is also a chargeable person, where PRSI is payable at different rates or amounts in a contribution year, a blended rate or amount will apply to that year (e.g. as rates will increase on 1 October each year, essentially 9/12ths of the income will be liable to PRSI at the first rate for that year and 3/12ths of the income will be liable at the second rate for that year i.e. a blended rate of 4.025% will apply for PRSI Class S through self-assessment in 2024). This provision does not apply to income which is taxable through the PAYE system. Income taxable through the PAYE system will be liable to PRSI at the rate in force on the date of payment.    

The minimum annual PRSI payment of €500 will increase to €650 for: 

  • Self-employed contributors (Class S) 
  • Class S voluntary contributors 
  • Optional contributions payable by share fishermen 

The Social Welfare (Miscellaneous Provisions) Act 2024 https://www.irishstatutebook.ie/eli/2024/act/24/enacted/en/index.html also provides for the introduction of Jobseeker’s Pay-Related Benefit, subject to a Commencement Order, which will be available to those:  

  • who have neither attained the age of 70 nor been awarded a State Pension Contributory, 
  • who satisfy the PRSI qualifying conditions and become unemployed 
  • Employees will be required to have 104 employment contributions since first starting work, at least 4 employment contributions in the preceding 10 weeks and at least 26 employment contributions in the preceding 52 weeks.  
  • Who are unemployed for an entire week (Monday to Sunday) or sustain a substantial loss of employment during that week. 

Jobseeker’s Pay-Related Benefit will be a taxable payment, taxed in a similar manner to other DSP benefits, and will be payable at the following rates, subject to a minimum weekly rate of €125: 

Duration of Unemployment   | 260+ PRSI Contributions   | Between 104 and 259 PRSI Contributions
First 13 weeks   | Lower of 60% of previous weekly earnings or €450  | Lower of 50% of previous weekly earnings or €300 
Next 13 weeks  | Lower of 55% of previous weekly earnings or €375 
Next 13 weeks   | Lower of 50% of previous weekly earnings or €300  | Jobseeker’s Allowance 
Thereafter   | Jobseeker’s Allowance  | Jobseeker’s Allowance 

MyGovID App

The MyGovID App https://www.gov.ie/en/publication/f61b1-mygovid-app/ is a new service that allows you to verify your identity using your smartphone. You can download the MyGovID onto your Apple or Android smartphone.  

The service is available if you are resident in Ireland, hold a current Irish passport, are aged 16 years and over, have a basic MyGovID account and have gone through the SAFE Registration process previously.  

Once the online application has been approved, users of the app will receive a public services card in the post and a verified MyGovID account.  

Labour Court

Sectoral Employment Order for the Construction Sector  

The Sectoral Employment Order https://enterprise.gov.ie/en/legislation/legislation-files/si-no-207-of-2023.pdf  for the construction industry provides for the following minimum rates of pay and pension contributions from the 5th August 2024:  

Hourly Rate of Pay  | Categorically of Worker 
€22.24  | Craft Worker – Bricklayers; stone layers; carpenters and joiners; floor layers; glaziers; painters; plasterers; stone cutters; wood machinists; slaters and tilers.
€21.59  | Category A Worker – Scaffolders who hold an advanced scaffolding card and who have 4 years’ experience; banks operatives; steel fixers; crane drivers and heavy machinery operators.
€20.03  | Category B Worker – General Operatives with more than 2 years’ experience working in the sector.
€16.19  | New Entrant Workers – New entrants aged 18 and over for the first 2 years working in the construction sector.
Apprentice rates  | Year 1 – 33.3% of Craft Worker rate Year 2 – 50% of Craft Worker rate Year 3 – 75% of Craft Worker rate Year 4 – 90% of Craft Worker rate 

With effect from 5 August 2024, the CWPS pension and sick pay contributions https://cwps.ie/_files/2024719171318_78bbf5ff.pdf are as follows: 

Weekly Contribution Rates from 5 August 2024  | Employer  | Employee  | Total
Pension Contribution  | €30.82  | €20.57*  | €51.39 
Death in Service Contribution  | €1.17   | €1.17*  | €2.34 
Sick Pay Contribution  | €2.37   | €0.63  | €3.00 
Standard Contribution Total   | €34.36   | €22.37  | €56.73 

*Amounts qualify for Income tax relief 

Reminders for August

5th    | Public holiday  
14th  | Return due date for July 
21st    | Pension deductions for July to be remitted to pension scheme 
23rd  | Payment due date for July 

Are you looking for a new job?

If you are, why not view the various payroll jobs  https://ipass.ie/jobs/  currently on offer on the IPASS website. 

There is no charge for members to advertise jobs. A fee of €100 plus VAT applies to non-members who wish to advertise a vacancy. Advertisements will be hosted on our website for up to 1 month.  

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