Pay Frequency Expansion

At SimplePay, we realise the importance of balancing simplicity with functionality that allows you to customise the system for your payroll needs. That’s why we’ve expanded our pay frequency settings to give you more flexibility to customise payment dates.

As most employers align their pay frequency end date with the payment date to employees, SimplePay based all calculations on the payslip end date, which you could customise for your business. The extension of the pay frequencies functionality caters for employers where there are significant differences between the payslip end date and the payment date (for example, an employee is only paid one week after their payslip date). You can now set a payment date that falls in the current, previous or following month (for monthly pay frequencies) or set a payment date relative to the payslip end date (for other pay frequencies). You can also edit the payment date for individual payslips.

This increased flexibility to tailor the system allows you to better align the tax, tax credits, tax cut-offs and year-to-date total calculations with your business practices. The payment date will also be used to determine in which submission and tax year the payslip will be included.

To specify a payment date:

  • Go to Settings > Pay Frequencies
  • Select the pay frequency to edit or add a new pay frequency. Editing pay frequencies will impact tax calculations, so this should be done with caution.
  • Select the checkbox Pay date is different to the period end date?
  • For monthly pay frequencies, specify the date of the payment in the current, previous or next month
  • For other pay frequencies, specify the relative payment date
  • Click Save when you are satisfied with the pay frequency set up.

For more information on pay frequencies, head over to our help page here.

Team SimplePay

New Feature: Managing End of Service in Bulk

To ease the payroll burden on employers and payroll administrators during the COVID-19 pandemic, we have introduced a new Employee Actions section to our Bulk Actions page to allow users to do the following for their employees in bulk:

  • End Service
  • Reinstate
  • Undo End of Service

This new bulk functionality allows you to manage multiple employees’ services in one place on SimplePay. This means that whether you are putting your employees on Reduced Working Time due to COVID-19, or you are reinstating them when business has returned to normal, you will be able to do this easily and for all your employees at once!

To learn more about how this functionality works, head over to our help page here.

For larger companies we recommend limiting this bulk functionality to batches of 50 employees to ensure smoother results.

If you have any questions, please contact our support team.

Team SimplePay

Temporary COVID-19 Wage Subsidy Scheme

31 March 2020: Clarified that only submissions made on or after the 26th March 2020, with a Pay Date on or after the 26th March 2020 will qualify for this scheme.

27 March 2020: Included a note that the subsidy amount is reckonable income that may be taxed at a later stage by Revenue.

On Tuesday, 24 March the Government announced a new Temporary COVID-19 Wage Subsidy Scheme which is aimed at providing financial support to employees affected by the COVID-19 pandemic. This new scheme comes into effect for any submissions made from, and with a Pay Date from, the 26 March 2020. This new scheme builds on the previous Employer COVID-19 Refund Scheme, mentioned in our recent blogs:

Employers, who have applied on ROS to operate under the Temporary COVID-19 Wage Subsidy Scheme,  will be able to make a non-taxable subsidy payment to employees along with a taxable top-up contribution through payroll. The subsidy payment will be refunded by Revenue to the employer after the submission is made to Revenue.

The Temporary COVID-19 Wage Subsidy Scheme will be available for employers who keep employees on their payroll throughout the COVID-19 pandemic and is not limited to employees who are temporarily laid-off as per the previous scheme.

How to Add the Temporary COVID-19 Wage Subsidy Scheme item on SimplePay

We have revised the scheme item we previously blogged about and have introduced a new Temporary COVID-19 Wage Subsidy Scheme item. This item can be added as follows:

  • Go to Employees
  • Select an employee
  • Select Add next to Payslip Inputs
  • Select the Temporary COVID-19 Wage Subsidy Scheme item
  • Enter the Subsidy amount
  • Enter the Top-up amount

In an effort to allow employers to continue to pay their employees the amount they would normally be paid, Revenue have allowed for a maximum amount of 70% of the employee’s Average Net Weekly Pay to be subsidised by the Department of Employment Affairs and Social Protection (DEASP) and a maximum amount of 30% of the employee’s Average Net Weekly Pay to be topped up by employers. More information on this is provided below.

Subsidy Amount

The Subsidy amount entered should be equal to 70% of the employee’s net weekly pay, with:

  • A maximum of €410 per week where the Average Net Weekly Pay is less than or equal to €586; or
  • A maximum of €350 per week where the Average Net Weekly Pay is greater than €586 and less than or equal to €960

The Subsidy amount will not be subject to Income Tax, USC or PRSI.

Please note: the Subsidy amount is reckonable income, which may be taxed at a later stage by Revenue. Revenue will be providing information on this on their website.

Top-Up Amount

If an employer wants to make a taxable payment to their employee, they can capture an amount less than or equal to 30% of the employee’s Average Net Weekly Pay in the Top-up amount field. This amount will be included in Gross Pay and will be subject to Income Tax, USC and PRSI as calculated by the RPN. However, there will be no employee PRSI applied and the employer PRSI will be reduced to 0.5% of the top-up payment. 

Note that if the employer captures more than 30% in the Top-up amount field (i.e. the employee receives more than their Average Net Weekly Pay), Revenue may reduce the Subsidy amount refunded to the employer. 

Calculating the Average Net Weekly Pay

For now, employers are required to calculate the employee’s Average Net Weekly Pay when capturing these amounts. To calculate the Average Net Weekly Pay, employers must use the values in the payroll submission for each pay date in Jan and Feb 2020:

  1. Take the employee’s “Gross pay” and from it subtract the “Income Tax Paid”, the “USC Paid” and the “Employee PRSI Paid“.
  2. Total this figure for each pay date in Jan and Feb 2020 and divide this by the number of insurable weeks (capped at 9) for the period.
  3. This gives you the employee’s average pay that is to be used for the Subsidy amount field.

Revenue has published guidance in the form of Frequently Asked Questions, which provide a worked example for the calculation of the employee’s Average Net Weekly Pay. This can be found here.

PRSI Class J9

Finalised payslips with the Temporary COVID-19 Wage Subsidy Scheme item added will generate a submission, with the J9 PRSI class included. This PRSI class lets Revenue know that the employee has been paid under the Temporary COVID-19 Wage Subsidy Scheme. You will not need to make any changes to the employee’s PRSI class or PRSI exemption status, this is done automatically when the Temporary COVID-19 Wage Subsidy Scheme item is added.

Gross Pay of €0.01

Revenue have stated that a pay amount of €0.01 should be included in Gross Pay if no Top-up amount is captured. The reason for this is that some payroll systems require a sum submitted under salary in order to function. Luckily for you, with SimplePay no amount is needed under Basic Salary for you to run your payroll, meaning the payslips’ basic salary will read zero. Revenue has communicated directly with us that the €0.01 is not required and employers will still receive a refund when submitting €0.00.

How to Apply to the Scheme:

Employers, and their agents, will need to apply to Revenue to operate the Temporary COVID-19 Wage Subsidy Scheme. To do this, please follow the steps outlined by Revenue in the “Registering for the Temporary Wage Subsidy Scheme” section. Employers, already registered with Revenue for the purposes of the Employer COVID-19 Refund Scheme, are not required to take any further action.

Employers must not operate this scheme for any employee who is making a claim for duplicate support (e.g. Pandemic Unemployment Payment) from the DEASP.

More information on the scheme can be found on Revenue’s website here.

As always, we’re here to help where we can. Please feel free to get in touch if you need help with any of the above on SimplePay.

Team SimplePay

Update: Employer COVID-19 Refund Scheme

Yesterday you may have read our blog about the new Employer COVID-19 Refund Scheme, a special support payment of €203 per week, which allows employers to pay their employees who are temporarily laid off. This amount can be paid by the employer through payroll, being refunded the day after the submission is made. You can read more about this on our blog post here.

We have been hard at work making changes to our system in order to cater for these payments to employees and the submissions to Revenue. A new COVID-19 Employer Refund Scheme item can be added as follows:

  • Go to Employees
  • Select an employee
  • Select Add next to Payslip Inputs
  • Select the COVID-19 Employer Refund Scheme item
  • Enter the corresponding amount based on the employee’s pay frequency

Employees who have been temporarily laid off can be paid €203 per week under this scheme. Therefore employers must input the correct amount based on the employee’s pay frequency:

  • Weekly – €203
  • Every 2 weeks – €406
  • Monthly – €812 (for 4 weeks in a month) or €1015 (for 5 weeks in a month)

This amount is not subject to tax, USC or PRSI. 

If you have multiple employees per week and want to save some time, you can use our Bulk Input functionality. Visit our Help Site here for more information.

Employees under this scheme must not receive any other wage payments from their employer, including wage top ups, overtime, shift allowance and on-call payments. As such, you will need to set the Basic Salary to 0 and remove any other Payslip Items and Regular Items on the payslip before finalising. 

Finalised payslips with the COVID-19 Employer Refund Scheme item added will generate a submission, with the J9 PRSI class included. This PRSI class lets Revenue know that the employee has been paid under the COVID-19 Employer Refund Scheme. You will not need to make any changes to the employee’s PRSI class or PRSI exemption status, this is done automatically when the COVID-19 Employer Refund Scheme item is added.

One possible situation that could lead to complications is where employees are paid monthly or fortnightly, but have been laid-off part way through their pay period. In this scenario, employers should not finalise the payslip, but should first switch their employees to a weekly pay frequency, allowing for the worked weeks to be separated from payments under the COVID-19 Employer Refund Scheme. The worked weeks should have the monthly pay pro-rated accordingly. This is in line with Revenue’s recommendations in their guide for the Operation of the COVID-19 Employer Refund Scheme, which can be viewed here

Note: In the aforementioned guide, a pay amount of €0.01 is required in order for payroll to run. The reason for this is that some payroll systems require a sum submitted under salary in order to function. Luckily for you, with SimplePay no amount is needed under Basic Salary for you to run your payroll, meaning the payslips’ basic salary will read zero. Revenue has communicated directly with us that the €0.01 is not required and employers will still receive a refund when submitting €0.00. 

Revenue has advised that if an employee has already been terminated due to temporary lay-offs, the special payment will need to be claimed directly from the Department of Employment Affairs and Social Protection (DEASP) and not through payroll. Even if you reinstate your employee through payroll, Revenue will not be refunding employers if they have previously made a payroll submission with the employee’s cessation date.

Please refer to the Revenue guide for the Operation of the COVID-19 Employer Refund Scheme as it provides a more in depth overview of the scheme. To register for the scheme please follow the guidelines provided by Revenue here.

Team SimplePay

Employer COVID-19 Refund Scheme

On 15 March 2020, Regina Doherty, the current Minister for Employment Affairs and Social Protection (DEASP) announced that workers who are temporarily laid off due to COVID-19 (Coronavirus) will be able to claim a special support payment of €203 per week. 

Revenue and DEASP unveiled an optional “Employer COVID-19 Refund Scheme”, which allows for employers to make payments to the value of €203 per week to their employees directly, through the normal payroll process. 

The amounts paid to employees under the scheme are not subject to tax, USC or PRSI. Revenue will also reimburse these payments to the employer’s bank account the day after the submission is made (starting Tuesday 24 March).

We are currently working on changes to our system to allow for these payments to be correctly catered for in the submissions to ROS. We will keep you updated and let you know when these changes are Live! In the meantime, employers, and their agents, will need to apply to Revenue to operate this new Employer COVID-19 Refund Scheme. To do this, please follow the steps outlined by Revenue in the “Making an application for the Refund Scheme” section.

Some key requirements to be able to partake in the scheme include:

  • Employees must have been temporarily laid off. Employees who have merely had their hours reduced due to COVID-19 will not be eligible for this scheme.
  • Laid off employees must possess a PPSN.
  • Employees must have been included on a payroll submission, made by the employer between 1 February 2020 and 15 March 2020.
  • Employees must be receiving no other wage payment from their employer, including wage top ups, overtime, shift allowance and on-call payments.

IMPORTANT INFORMATION: Should employers wish to partake in this scheme, employees should not be terminated on SimplePay and should remain as active employees for the duration of the scheme. 

More information has been provided by the DEASP and Revenue

Thank you for your patience whilst we implement these changes.

Team SimplePay

National Minimum Wage and PRSI AX Changes

The national minimum wage in Ireland will increase from €9.80 to €10.10 per hour from 1 February 2020 for people aged 20 years and older. This will have an impact on both PRSI and USC.

PRSI will be impacted as follows:

  1. There will be no changes to the employee rates for PRSI.
  2. There will be no change to the employee PRSI credit.
  3. The PRSI employer threshold for class AX will change from €386 to €395 (weekly).

The PRSI contribution rates will therefore be as follows for private and some public sector employments:

As always, SimplePay takes the hassle out of compliance for our users. We have already made updates to the system to ensure that the PRSI calculation is correct, depending on the date of your payslip. This means that if you prepare payslips that are dated before 1 February 2020, the system will use the previous thresholds, while payslips dated from 1 February 2020 will use the updated thresholds. There is therefore no need for you to make any changes or updates on your end – you simply continue capturing payroll as usual.

The USC threshold for the 2% bracket will also change so that full-time minimum wage workers stay in the same USC bracket. This change will be reflected through changes in employee RPNs and will take effect on 1 March 2020.

For more information on PRSI and USC, check out our help pages here.

Team SimplePay

Bulk Import Employees from ROS

We have a new feature that we’re very excited about and think you will be too. It’s now possible to import new / additional employees and their RPNs directly from ROS. This means that you no longer need to manually add employees if they exist on ROS with a valid RPN. 

To import employees in bulk, navigate to Employees > Bulk Actions > Import Additional Employees. After importing the list of employees from ROS, simply select the employees you want to save, complete some basic employee information and select the save button. The selected employees will be created in SimplePay. 

For more information, please refer to our help site page or contact our Support team who will be more than happy to help you.

We hope you will enjoy this new feature us much as we will.

Team SimplePay

Year in Review

As 2019 (and the decade) draws to a close, we’d like to thank you for choosing SimplePay as your payroll software provider. We really value the loyalty, ideas, feedback and love that we get from you, our clients.

We would also like to take this opportunity to reflect on the year that has been. 2019 was certainly a year of growth for our team. We changed our branding to better represent ourselves as a global entity and were honoured to be nominated as a Xero App Partner of the Year for South Africa. Some of the major features and functions that we accomplished were:

  • Custom items based on system items, and the subsequent expansion of this feature
  • Live chat support
  • Custom employee fields in Basic Info
  • A new leave days report
  • Customisation of employee self-service
  • PRSI classes expansion
  • Dual employment
  • Bulk actions for once-off payslips and overriding payslip end dates
  • Leave expiration
  • A gender field as preparation for gender pay gap reporting
  • QuickBooks integration upgrade
  • Automatic logout for idle accounts

In 2020, you can expect the team to continue striving to enhance your payroll experience. As always, all added features are completely free for all and do not change the monthly fee that you pay.

From all of us here at SimplePay, have a joyful festive season. We are looking forward to a great 2020 together!

Team SimplePay

Automatic Logout Feature

We are happy to announce a new security feature as part of our ongoing commitment to protecting your data and helping you stay safe online. We already have the highest of security standards in place, and last year we introduced an optional 2-factor authentication feature to prevent access to your account if someone has your password. Now, our optional timeout feature allows you to choose how long the system can be left idle for before automatically logging you out of SimplePay.

With this new feature, if you forget to log out of SimplePay, the next person that uses that computer or electronic device will not have access to your account. This is especially beneficial to you if you share computers in the workplace, if you work on public computers or if you are concerned that someone will use your electronic device when you leave it unattended.

To access this feature:

  • Go to the Profile icon and select User Profile
  • Click on Lock screen after timeout
  • Select a timeout option.
    • If you select ‘Disabled’, you will not be logged out of the system, no matter how long a page has been left idle for.
    • If you select a time from the menu (e.g. ‘1 hour’), it means that the system will log you out if there has been inactivity for the time specified.
  • Click Save

Just another way that SimplePay is helping you take care of your sensitive employee data.

Team SimplePay

QuickBooks Integration Upgrade

As the year draws to a close, our holiday elves have been bustling behind the scenes to enhance your payroll experience, focusing on our QuickBooks integration. SimplePay integrates with both QuickBooks and Xero, allowing you to send your payroll information straight from SimplePay into your general ledger accounts with the click of a button. This means that you do not have to switch between systems to transfer information, saving you time and reducing the possibility of human error.

You’ll be happy to hear that our QuickBooks integration has been refined to give you an upgraded user interface and setup. These improvements will make the process easier to navigate and simpler to understand if you wish to integrate your payroll and accounting information.

If you have already integrated QuickBooks and SimplePay in the past, please note that you may be required to re-authenticate your account due to the work done behind the scenes.

For more information on integrating SimplePay with QuickBooks, head on over to our help page.

Team SimplePay