Certificate in Payroll Techniques

Compliance with employment legislation is an obligation of every employer. Failure to do so can result in employees not receiving their statutory entitlements and ultimately it can result in significant penalties being imposed by the Workplace Relations Commission.

Employment law forms a major part of the course and is covered in both Semester 1 and Semester 2 syllabus.

The employment legislation in Semester 1 outlines some of the fundamental aspects an employer needs to comply with such as:

• What must be included in the terms of employment issued to employees
• Issuing payslips to employees and what they must include
• National minimum wage
• Holidays, public holidays, rest breaks and working time
• Facilitating employees for jury service

The majority of the employment legislation in Semester 2 can be regarded as protection legislation, as it seeks to protect employee rights. Semester 2 covers:

• An employee’s right to statutory sick leave
• An employee’s right to maternity leave, adoptive leave, paternity leave, parent’s leave, parental leave, carer’s leave with protection of employment
• Entitlements of part-time and fixed-term employees
• Protection of young persons and temporary agency workers

The course will explain the different definitions of pay, from gross pay to net pay, and the amount which is liable to tax, USC and PRSI. It will explain the different types of payment which must be included in gross pay and the rules relating to pre-tax and post-tax deductions.

Income tax is deducted from an employee’s wages under the PAYE system. You will learn how the PAYE system operates based on rate bands and tax credits, and the factors which affect an employee’s entitlement to tax credits and rate bands. The rules relating to the various basis of assessment, ranging from cumulative basis, emergency basis, week 1 and week 53 basis.

Universal Social Charge (USC) is calculated on an employee’s gross pay for USC purposes, which can be different from the amount which is liable tax. The course will explain how USC is calculated using various rates and thresholds on the cumulative, emergency, week 1 and week 53 basis.

Pay Related Social Insurance (PRSI) is calculated on an employee’s pay for PRSI purposes. PRSI allows employees to qualify for various benefits from the Department of Social Protection in the event they are absent from work due to unemployment, illness, maternity leave, paternity leave, etc., and a State Pension Contributory on retirement.

PRSI is calculated using various PRSI Classes, rates, thresholds or credits, depending on factors such as the type of employment, the employee’s age, etc. The course will outline the rules relating to PRSI classes and calculations.

The course will outline the communication process between employers and Revenue which happens electronically through ROS or using web-based services.

All employers are obliged to register with Revenue when they become an employer and keep a register of all employees. Revenue provide details of an employee’s tax credits, rate bands, USC rates and bands to an employer using a Revenue Payroll Notification which must be used by the employer to calculate the employee’s tax and USC. Employers must report payroll details to Revenue using a Payroll Submission on or before the date the employee is paid. Employers are also required to file a monthly return and pay liabilities to Revenue on a monthly or quarterly basis.

Employers are required to submit details of certain tax-free benefits or expenses to Revenue on or before the date they are provided to employees via an Enhanced Reporting Requirements (ERR) Submission.

Employees can also communicate with Revenue electronically through myAccount. The course will explain the various services an employee can access through myAccount. At the end of the tax year Revenue will make an Employment Detail Summary available to an employee with the employee then having the option to complete an Income tax return.

A benefit in kind (BIK) arises when an employee receives a benefit from his or her employer in a form other than a monetary payment. Some common BIKs include free or subsidised medical insurance, free personal use of a company car or van, free or subsidised accommodation, payment of professional memberships, etc.

The course will explain the rules for calculating the taxable value of a BIK and outline the rules relating to various BIKs which can be given to an employee free of tax. It will outline how an employer can incur the cost of the tax, USC and PRSI on a benefit provided to an employee and benefits which can be facilitated through a salary sacrifice arrangement.

Employers are permitted to reimburse expenses to an employee free of tax where such expenses were wholly, exclusively, and necessarily incurred by the employee in the performance of their duties. The course will explain the various rules relating to the tax-free payment of travel and subsistence rates, relocation expense and remote working payments. Employers are obliged to report details of certain tax-free payments such as travel and subsistence expenses and remote working payments to Revenue on a real-time basis.

Where an employee incurs an expense which was wholly, exclusively, and necessarily incurred in the performance of their duties, they are entitled to claim tax relief from Revenue where it is not reimbursed by the employer. For certain industries, Revenue will grant Flat Rate Expense Allowances to employees to negate the requirement for many employees to claim tax relief of small incidental expenses.

PRSI contributions paid by employers and employees insures the employee for various benefits from the Department of Social Protection in the event of an absence from work due to illness, maternity leave, paternity leave, etc.

The majority of these benefits are taxable. The course will explain how employees qualify for Illness Benefit and how Revenue tax these benefits through the PAYE system. Many employers provide occupational sick pay or maternity pay to employees and the course explains the interaction between the social welfare benefits and the payment of sick pay or maternity pay by the employer.

Currently there is no obligation on an employer to offer access to an occupational pension scheme to an employee. However, in the absence of an occupational pension scheme, the employer is obliged to facilitate access to a Personal Retirement Savings Account (PRSA) to an employee.

The course will explain the various types of pension schemes, how employee contributions qualify for tax relief and the reporting obligations of the employer. Employers are responsible for ensuring employees are not granted tax relief on excess contributions. It will also explain the options available to an employee on leaving employment before retirement. You will be provided with an overview of Automatic Enrolment (a compulsory pension scheme) which is due to be introduced in 2025.

The treatment of contributions to, and payments received from, an income continuance scheme will also be explained.

Additional Superannuation Contribution (ASC) is a deduction from the pensionable pay of a public servant to help fund their pension benefits.

The course will explain who is liable to pay ASC, what is regarded as pensionable pay, and how ASC is calculated using rates and thresholds, including on commencement and cessation of employment.

It will outline the various forms to be completed by a public servant and those forms which should be issued to public servants by their public service employer.

The course will explain how statutory redundancy payments are calculated for eligible employees. It will also outline the rules relating to the calculation of the tax-free and taxable amounts of a lump sum payment which may be paid to an employee on cessation using the basic or increased exemption and the standard capital superannuation benefit exemption.

The rules relating to the tax treatment of employment law compensation payments will be explained as will the reporting obligations of the employer.