Navigating your payslip can be difficult but don’t worry, our team of experts are here to help you! Your payslip is more than just a paper record so let’s explore the world of payroll.
Mandatory field on the payroll submission. An employment identifier is unique to each separate employment for an employee. The main purpose is to help distinguish between multiple employments for an employee with the same employer.
The period of days the employee has worked the week or month previously which they are entitled to payment. The payment date is the date in which funds are available to the employee.
PPS number is not just a string of digits, instead it's purpose is to be a unique identifier used for tax purposes and also accessing social welfare benefits and public service information in Ireland.
“Pay As You Earn” system deducts income tax, PRSI and USC from an individual salary. PAYE is a mandatory tax deduction. The PAYE system ensures that individuals earnings align with their tax contributions.
“Pay Related Social Insurance” is a contributory system that not only fuels social welfare payments but also attributes to an individual pension fund. PRSI is broken down into classes that determine what PRSI contributions an individual pays based on their employment type. Everyone has a PRSI class. The class is outlined by the Department of Social Protection.
There are 11 different types of social insurance in Ireland :
Applies to employees in industrial, commercial, and service types of employment. The individuals are employed under a contract of service with a reckonable income of €38 or more per week from their employment.
Applies to individuals earning less than €38 per week. There is an exception of individuals aged 66 or over who are always insurable at Class J, no matter the amount they earn.
Is applicable to ministers of religion who are in employment by the Church of Ireland Representative Body. Class E also covers all social insurance payments (except Jobseeker’s Benefit and Occupational Injuries Benefit).
Is applicable to civil servants and Gardaí (recruited before 6 April 1995). This class covers only a limited number of social insurance payments.
Is applicable to commissioned Army Officers and employees of the Army Nursing Service. This class only applied to employees who were recruited before April 6th 1995. Only a limited number of social insurance benefits are available.
Is applicable to permanent and pensionable employees in the public service but different to those mentioned in class B and C. Only a limited number of social insurance benefits are available under this class.
Is applicable to NCOs (non-commissioned officer) and employees of the Defense Force. All social insurance payments are available except to those receiving Occupational Injuries Benefit.
Applies to all public office holders who have an income over €5,200 a year. This class also applies to employees who pay PRSI on unearned income. No social insurance payments are available for people under class K.
Is applicable to employees with no liability to contribute to social insurance payment. An example of this would be employees under the age of 16 years of age. Only certain contributions with Occupational Injuries Benefit.
Is only applicable to self-employed people. It covers a limited number of social insurance payments.
Is applied only to sharefisherman or sharefisherwomen who are self-employed and already paying PRSI under Class S. It covers individuals for limited Jobseekers Benefit, illness Benefit and Treatment Benefit.
PRSI is a payment made by both the employer and the employee. The amount is of this payment is based on the amount an employer is paying the employee. The contribution is made up of the following:
1. Employers - Amount of PRSI an employers pay on their employees pay.
2. Employees - Amount of PRSI that an employee pays on their own pay.
“Universal Social Charge” is a tax applicable if an individuals gross income exceeds €13,000 per year.
Total amount an individual has earned before deductions are made.
Amount remaining after statutory and voluntary deductions are made.
The total amount of deductions made within a pay period.
Details of the bank account in which an employee salary is deposited too.
The cut-off is an amount that an individual can earn before paying a higher rate of tax. The standard rate of income tax is 20% on all earnings up to €40,000 per year and the 40% higher rate applies when an individual earns above €40,000 per year.
Tax Credit – Entitlement based on an individual’s personal circumstances. Tax credits are announced yearly. Single Person Tax Credits for 2023 are €3,550.
Payments an employer makes towards an employee pension. The payments can be regularly or a once-off payment.
Pension contributions are an amount of money invested into an employee pension. There are two types of pension contributions – First is a defined benefit which is an established figure that will be paid on retirement based on a person’s salary and number of years in the plan.
The second type of pension contributions is a defined contribution plan which is when an employee pays a set amount into their own pension each month and usually their employer makes a regular fixed contribution.
The Irish tax year to date covers the period from the 1st of January to the any date before the 31stof December.
· PAYE
· USC
· PRSI
· Pension
· Pension Related Deductions
· Local Property Tax (LPT)
· Tax Saver Travel Scheme
· Cycle to work Scheme
· Union Fees
Employee tax credit(formerly known as PAYE Tax Credit) is a system of deductions known as the pay as you earn system. All taxpayers are entitled to a tax credit.
In today's complex business landscape, managing payroll functions can be a daunting task for many organisations. Accurate payroll processing reduces the risk of fraud and unauthorized access to sensitive information & can save you both time and money!
At JPA Brenson Lawlor we have a dedicated team of Payroll experts that process payroll for over 250 clients in the ROI. Are you thinking of outsourcing your payroll function? Contact our Payroll Manager now!
Payroll Manager: Henry Keenan
Email: Henryk@jpabrensonlawlor.ie
Contact: 01 688 9760
