? APBS Accounting Payroll and Business Services Ltd.
F.A.Q
 
 
 

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Accountancy FAQ’s
  What Taxes am I liable for and when ?
  For what period do I need to hold onto records for the Revenue ?
  How are returns made and paid to the Revenue ?
     
Payroll FAQ's
  What Tax will I Pay ?
  What is PAYE ?
  What is PRSI ?
  What is USC ?
  What is LPT ?
  What is the difference between paying an employee a Gross rate vs a Net rate ?
  What revenue forms do I give an employee ?
  Do I need to give employees a contract ?
  What are public holiday entitlements ?
     
How We Work FAQ's
  What area of the Country does the APBS service cover ?
  How does the APBS system work ?
  How des the payroll process work ?
  How do we get the documentation to APBS ?
  Who do we talk to in ABPS ?
  How much do I pay and when ?






Budget 2018 highlights


VAT: increase on sunbeds from 13.5% to 23%

Capital Gains Tax (CGT): incentive in respect of properties purchased between 7th December 2011 and 31st December 2013 has been extended the scheme to include properties purchased up to the end of 2014.
Ownership period reduced down to 4 years.First 4 years of ownership will be exempt from CGT.

Stamp Duty on commercial property: Increased from 2% to 6% (effective imediately)

PAYE/PRSI/USC

SRCOPs will be increased by €750 from 1st January 2018
Single/Widowed Person or Surviving Civil Partner: First €34,550 @ 20%, Balance @ 40%
Qualifying for the Single Person Child Carer Tax Credit: First €38,550 @ 20%, Balance @ 40%
Married Couple or Civil Partnership - One Income: First €43,550 @ 20%, Balance @ 40%
Married Couple or Civil Partnership - Two Incomes: First €43,550 @ 20% Plus an amount equal to the lower income (subject to a maximum of €25,550), Balance @ 40%

Personal Tax Credits: No changes

Earned Income Tax Credit: increased by €200 from €950 to €1,150

Home Carer Tax Credit: increased from €1,100 to €1,200

Universal Social Charge (USC)
     
People aged under 70 years
     
  Rate of USC Charged on PAYE income between
  0.5% €0 to €12,012
  2% €12,012.01 to €19,372
  4.75% €19,372.01 to €70,044
  8% Over €70,044
     
People aged over 70 years or those who have a full medical card With income less thank €60,000
     
  Rate of USC Charged on PAYEincome between
  0.5% €0 to €12,012
  2% above €12,012
     
All
     
  11% self-employed income above €100,000

Employers PRSI rates increased by 0.1% to 8.56% for Reducted Rate and 10.85% for Higher Rate

Minimum Wage: Increasing to €9.55 from 1st of January 2018

Mortgage Interest Relief: reduced by 25% each year from 2018 until abolished in 2021

 
Accountancy FAQ’S
 

Q.What Taxes am I liable for and when ?
General : The Revenue Commissioners impinge on you in four basic areas:

VAT, PAYE, PRSI, USC, LPT, Corporation Profits Tax (CPT) and the Environmental Levy (EL)

VAT is calculated bi-monthly quarterly, bi-annually, or annually, and is payable by the 19th of the month after the end of the period.  Start-up businesses will be initially liable for bi-monthly and the quarterly / bi-annual returns are a gesture by the Revenue to ease the burden on small turnover business by cutting down on the number of returns. Annual Returns operate where a monthly direct debit payment of a fixed amount is paid, with any balance being accounted for when the return is made.

PAYE-PRSI-USC-LPT is payable by filing a Form P30 monthly/quarterly/annually by the 14th of the month following the end period e.g. Monthly - January liability is payable by 14th February. Quarterly – January to March liability is payable by 14th April. Annual – January to December liability is payable by 14th January the following year.

If VAT and/or PAYE/PRSI are filed and paid on-line the payment date is extended to the 23rd. of the month.

CPT ( Corporation Profits Tax) is an annual calculation, paid in two instalments depending on the date of your Accountancy year. There are also Preliminary CPT Payments to be paid depending again on your financial year-end.

EL (Environmental Levy Tax) is payable quarterly and is the “plastic bag” levy. You have to keep a separate record of the plastic bags that you provide and you make this return yourself  based on a cost of  30c per bag supplied.

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Q. For what period do I need to hold on to records for the Revenue ?
Revenue require that all records be held for a period  of six years, to facilitate a Revenue Audit, should you  be selected for one. This includes all Till Rolls, Till Readings, Invoices, Bank Statements & Cheque Books etc.  In short all relevant material must be held for this period.

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Q. How are returns made and paid to the Revenue ?
While Revenue will provide paper returns, APBS files all returns through ROS (Revenue On-Line
Service) from 01/07/2011 e-filing and payment willbe mandatory for most Revenue clients.

Payment - PAYE and VAT is paid by ROS direct and we will advise you of the amount of the deduction in the case of PAYE/PRSI and VAT where there is a liability or of the amount of any Refund where this is the case in any particular VAT period.

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Payroll FAQ’S
 
 

What Tax will I Pay?

There are 3 deductions which the employer makes from their staff’s pay to be paid over to the revenue on their  behalf.

PAYE  - see section on  What is PAYE for how to calculate PAYE

USC  - see section on  What is USC for rates

PRSI  - see section on  What is PRSI for rates

LPT – see section on What is LPT for details

 

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What is PAYE?
PAYE is “Pay As You Earn”. It is income tax that is calculated at the time of payment. There are 3 categories for Tax Calculation. Cumulative Basis, Week1/Month1 Basis and Emergency Basis which determine the way your PAYE is calculated.

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Cumulative Basis
This is the basis used for the calculation of PAYE liability in most cases. Using cumulative basis means that a person’s income tax liability is not calculated for each week, or month, in isolation. Instead, it works by calculating the income tax liability arising on a person’s income from the commencement of the income tax year to date, taking account of the employee’s total earnings to date and their accumulated weekly tax credits and standard rate cut off point. In this way, the employee’s tax liability is recalculated each time they receive a payment and, as only a portion of their annual income is earned at any given time, they are granted a portion of their annual tax credits and standard rate cut-off point appropriate to that period of time i. e. 1/52 per week of tax year, 1/12 per month of tax year.

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Week 1/Month 1 Basis
In certain cicumstances an employee’s  PAYE liability is calculated on a Week 1/Month 1 basis. This is the direct opposite of the cumulative basis, which means that the pay, tax credits or the standard rate cut-off point are not accumulated for tax purposes. The pay for each period, i.e. week, or month, is dealt with in isloation and no account is taken of pay, tax credits, standard rate cut-off point and tax deducted in previous weeks, or months. The tax credits and cut-off point on a week 1/month 1 certificate are used in the calculation of tax due each week, or each month in which a payment is made. No refunds of income tax deducted may be made by the employer to an employee who is being taxed on a week 1 or month 1 basis.

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Emergency Basis
Where the tax credits and standard cut-off point or PPS number of an employee is not known, the employee’s PAYE liabiltiy is calculated on an emergency basis. Where the employee’s PPS number is not known the employee does not receive any tax credit or standard rate cut off point. Where the employee’s PPS number is known the employee receives a single persons tax credit and standard rate cut off point for the first 4 weeks. For the second 4 weeks the employee receives no tax credits but still receives a single persons standard rate cut off point. For all remaining weeks of emergency tax the employee will not receive any tax credits or standard rate cut off point. The tax liability is calculated in the same way as Week 1/Month 1 basis using the tax credits and standard rate cut off point as described above.

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What is PRSI?
This is the Social Insurance contribution which is made by the employer and if the employees earns over a certain income threshold the employee also makes a contribution. The 2 most common PRSI classes are “A Class” and “S Class”
Most employees are insured under  “A Class”. In this class employee’s who earn up to €352.00 pay no employee contributions.Employees who earn between €352.01 and €424 will pay 4% of thier earmings less a PRSI credit which tapers from €12 on earnings of €352.01 to €0 on earnings of €424. Employees earning €424.01 and above pay 4% employee's contribution on their earnings. The employer’s contribution is 8.5% where and employee earns up to €356 and 10.75% where and employee earns over €356 .

The self employed are insured under “S Class”.  In this class the person will pay 4% on all earnings. There is no employers contribution for “S Class”.

Link to full PRSI details for 2017 -

https://www.welfare.ie/en/downloads/SW14-17.pdf

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What is USC?
USC stands for Univeral Social Charge. USC is paid where total earnings for a year exceed €13,000. USC is not chargeable on Social Protection payments or Salary sacrifices however it is chargeable on Pension and PRSA contributions.

USC rates are as follows:

     
People aged under 70 years
     
  Rate of USC Charged on PAYE income between
  0.5% €0 to €12,012
  2.5% €12,012.01 to €18,772
  5% €18,772.01 to €70,044
  8% Over €70,044
     
People aged over 70 years or those who have a full medical card
     
  Rate of USC Charged on PAYEincome between
  0.5% €0 to €12,012
  2.5% above €12,012
     
All
     
  11% self-employed income above €100,000

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What is LPT?
 
LPT is Local Property Tax.  The following are some of the groups liable for LPT
 
  • All owners of residential property, including rental properties, are liable to pay the tax
 
  • People who have a long-term lease (20 years or more)
 
  • People with a life interest or long-term right of residence (life or more than 20 years) in a residential property
 
  • Local authorities or social housing organisations
 
  • A person acting as a personal representative for a deceased owner (for example, as an executor/administrator of an estate). Trustees or beneficiaries are jointly liable where a residential property is held in trust
 
 

Full details on the rates and liabilities can be found on http://www.revenue.ie/en/tax/lpt/liability.html

 
 

One of the ways in which Local Property Tax can be paid by deduction at source from PAYE income. This is also one of the methods that the Revenue can use to collect LPT that is outstanding. The total amount of LPT due for that Tax Year is coded onto your P2C certificate of Tax Credits and deducted from your pay after tax has been calculated. The amount deducted is calculated by dividing the amount of LPT yet to be deducted by the number of pay periods remaining in that tax year. The LPT that has been deducted is then paid to Revenue on the P30s.

 
 

What is the difference between paying an employee a Gross rate vs a Net rate?
A gross rate is where the employer’s costs are fixed* and the employee’s take home pay will vary based on his/her circumstances, tax credits and SRCOP.

A net rate is where the employee’s take home pay is fixed and the employers costs will vary based on the employee’s circumstances, tax credits and SRCOP.

A net rate of pay can become very costly if the emplyees hours increase or overtime is done pushing the employee’s rate of PAYE into the 41% bracket it will then cost the employer more than double the nett rate for those increased hours.


*(the number of hours woked  x  the gross rate)+ Employer’s PRSI

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What revenue forms do I give an employee?
There are 2 revenue forms that an employee gets:

  1. P60 – this is given at the end of every year where the employee is still employed by you on the 31st December. This gives details of the employee's earnings and PAYE/PRSI deductions for the year
  2. P45 – this is given to the employee when their employment is terminated. This gives details of the employee's earinings and PAYE/PRSI deductions for year up to their termination.

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Do I need to give employees a contract?
Yes. All employees need to have a contract and that contract can be verbal or written. However there are a number of items which must be given to every employee in writing within 2 months of the start of employment. These are known as the Terms of Employment
  • The full name of employer and employee
  • The address of the employer
  • The place of work
  • The title of job or nature of work
  • The date the employment started
  • If the contract is temporary, the expected duration of the contract
  • If the contract of employment is for a fixed term, the details
  • Details of rest periods and breaks as required by law
  • The rate of pay or method of calculation of pay
  • The pay reference period for the purposes of the National Minimum Wage Act 2000
  • Pay intervals
  • Hours of work
  • That the employee has the right to ask the employer for a written statement of his/her average hourly rate of pay as provided for in the National Minimum Wage Act 2000
  • Details of paid leave
  • Sick pay and pension (if any)
  • Period of notice to be given by employer or employee
  • Details of any collective agreements that may affect the employee’s terms of employment
 
Link to sample “Terms of Employment” - http://www.employmentrights.ie/en/media/Sample%20Terms&Conditions.doc
It is always a good idea to put any agreements outside of the above in writing also as then everyone is clear about what is expected. Also if there are any changes to an employees terms of employment that change should be given in writing and both parties should sign and date the amendment.

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What are public holiday entitlements?
Employees are entitled to have paid leave on public holidays with the exception of part-time employees who have not worked 40 hours or more in total in the 5 weeks before the public holiday.
Employees who qualify will be entitled to one of the following :
A paid day off on that day
A paid day off within a month of the public holiday
An additional day of annual leave
An additional day's pay – where the employee is working on the public holiday only

Employees who are entitled to public holiday leave, but who are not due to work on that particular day should receive 1/5 (20%) of their average weekly pay instead of the actual day's leave.

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How We Work FAQ’s
 
 
What area of the Country does the APBS service cover ?
APBS has clients in and covers all 26 counties of Ireland.
 
 

How does the APBS system work ?
We meet with you, for an initial consultation, in your own premises or at the APBS offices, whichever is more convenient for you. This meeting will be timed to suit you and may be after normal business hours or at week-ends.

At this meeting we will sort out all the details as to what services you require, the documentation we require from you and the reports which we will send to you. We will acquire all of the information required to set your business up on our systems. If you are already an established business, we will agree the date at which we will take over your payroll/book-keeping. If you are switching from another service this date will depend on the transfer of information from them we will then liaise with your existing Accountants or if you are a green fields operation we will go through the set-up procedures with you and keep in contact to ensure that all is running smoothly.

Once the routine is established we will communicate by post or email and normally we will meet with you to discuss the annual accounts draft, make any necessary adjustments and meet to finalise your accounts.  We are always available to answer your questions.

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How does the payroll process work?
In order to set up your payroll we will need to get your Employer’s Registration Number and bank details if paying by paypath*. We will also need all your employee’s details including Name, Address, PPS number, Start Date, Rate of Pay, PRSA/Pension details and Bank Details if paying by paypath*. We will need a record of any earnings they have had that year and any PAYE, PRSI ,USC, PRSA/Pension contributions if we start the payroll mid year.

Once we have your details set up then each period (week/fortnight/month) you will need to send us a timesheet for any non-Salaried or non-Standard employees. You can send this by Email, Fax or Post. You can use your own timesheets/hours worked reports or we can provide you with one. We will enter these timesheets, process your payroll and make any paypath* payments. We will then send out the payslips either by Post (in bulk to the manager or individually to employee’s home addresses), by Email as a pdf file or by Web where the employee logs onto a secure website to retreive their payslip. We can also send the payroll analysis reports or any other reports required to you be post or by email.

Any holidays or additional payments, changes in rates of pay or employee details can all be sent with the relevent timesheet.

We will make all Revenue returns where we have agent access to Revenue Online Services (ROS).
*paypath is a method of paying wages by electronic bank transfer.

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How do we get the documentation to APBS ?
All relevant documentation, such as sales/purchases invoices, bank statements/cheque books etc. is sent to us by post on a monthly basis. APBS will supply you with a postal pouch and this is used to forward the bulk of the material to us. Any late material can be posted on to us normally.

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Who do we talk to in APBS ?
APBS allocates a Customer Liaison Officer to you and he/she will deal with your account and give you assistance and advice on any aspects of the book-keeping.

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How much do I pay and when ?
The agreed fee is paid monthly, by Direct Debit allowing you to spread your overhead across a 12 month period instead of having a lump sum payment at year end.

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