COVID-19 & Payroll: What you need to know 7th May 2020

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COVID-19 & Payroll:What Employers Need To Know

Welcometo today’s webinar

Rachel HynesMarketing Executive at Thesaurus Software / BrightPay

Karen BennettHead of Sales & Marketing at

Thesaurus Software / BrightPay

Paul ByrneManaging Director

at BrightPay

Laura MurphyHR Manager &

Employment Law Expert

Audrey MooneyCustomer Support

Manager

Ruth KennedyPrincipal Officer at

Revenue Commissioners

COVID-19 & Payroll: What you need to know 7th May 2020

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Questions Recording Email

Handouts Resources

COVID-19 & Payroll:What Employers Need To Know

The government has announced a National COVID-19 Income Support Scheme

COVID-19 Government Measures COVID-19 &

Employer Rights

COVID-19 Income Support Scheme:

Temporary Wage Subsidy to help affected companies keep paying their employees

Pandemic Unemployment Payment for workers who have lost their jobs

Increased Illness Benefit

Additional Resource

Self-employed – eligible for Pandemic Unemployment Payment

COVID-19 & Payroll: What you need to know 7th May 2020

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Putting Staff on LayoffAs a result of the recent business closures,

many employees have been laid-off.

Normally the employee will return to their previous role on the same terms and conditions

Layoff or Redundancy?

An employee’s length of service is not impacted by the layoff

Layoff - a temporary measure -the individual is still an employeebut not receiving any remuneration

Typically, an employee may claim statutory redundancy where a layoff situation lasts for:

Layoff or Redundancy?

4 weeks or more

Redundancy - when the employee loses their job permanently due to a business closure / reduction in work

6 weeks in the last 13 weeks

COVID-19 & Redundancy

Legislation on claiming redundancy has been changed during COVID-19

Emergency Period:13 March 2020 to 31 May 2020

Employees who have been laid off during the emergency period are not able to claim redundancy

COVID-19 & Payroll: What you need to know 7th May 2020

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Putting staff on layoff

Employers should give employees notice in writing that they will be put on layoff

Consider a temporary layoff clause or letter getting confirmation from the employee to the layoff

Best practice is for employees to have a layoff clause in their contract

Additional Resource

Layoffs & Annual Leave

Employees on layoff will accrue public holidays but not annual leave

Try to be flexible in terms of allowing an employee to carry over leave

Accrued annual leave remains intact during layoff– employers should not pay employees in lieu

COVID-19 & Short Time Work

Working hours reduced to 3 days or less – Short time Work Support

Employers working short-time continue to accrue annual leave

Payment is made in respect of your regular salary for the days you are no longer working

Available to employees and the self-employed who have lost their job due to the COVID-19 pandemic.

COVID-19 Pandemic Unemployment Payment

COVID-19 & Payroll: What you need to know 7th May 2020

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Available to employees and employers who have lost their job on or after 13th March due to the COVID-19 pandemic

Paid at a flat rate of !350 per week for the duration of the pandemic

COVID-19Pandemic

Unemployment Payment

Students, non-EEA nationals, part-time workers, casual workers

Voluntary unpaid leave due to school / childcare closure

COVID-19Pandemic

Unemployment Payment Working casually and became

fully unemployed

Aged 18 – 66 and lost your employment due to COVID-19

You cannot claim if you voluntarily left your employment(except to look after children)

COVID-19Pandemic

Unemployment Payment

If diagnosed or self-isolating, apply for Illness Benefit:Increased to !350

You cannot claim if you are continuing to get income fromyour employment

Available to employers who may wish to receive financial support so that they can continue paying their employees.

Temporary COVID-19 Wage Subsidy Scheme

COVID-19 & Payroll: What you need to know 7th May 2020

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Must be able to demonstrate a minimum 25% decline in turnover

Must retain employees on the payroll

TemporaryCOVID-19

Wage Subsidy Scheme Must be unable to pay normal

wages and normal outgoings fully

Must be experiencing significant negative economic disruption due to COVID-19

Restricted to employees who were on the employer’s payroll as at 29 February 2020

TemporaryCOVID-19

Wage Subsidy Scheme

A payroll submission must have been made to Revenue from 1 February 2020 to 15 March 2020

Operating from 26th March 2020 and expected to last for 12 weeks

TemporaryCOVID-19

Wage Subsidy Scheme

Where no submission by 15 March, Revenue will allow access for employers, provided:

Employees were included on the payroll on 29 February 2020

February 2020 PSR was submitted to Revenue before 1 April 2020

PSRs for all previous months submitted before 15 March 2020

Transitional Phase:26 March 2020 to 3 May 2020

Employers received !410 per week per employee on PRSI Class J9

In many cases, this exceeded the employees entitled subsidy amount

Revenue - perform a reconciliation to look for any overpayments

Wage Subsidy Scheme

Transitional Phase

COVID-19 & Payroll: What you need to know 7th May 2020

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Operational Phase:4 May 2020 onwards

Revenue will calculate maximum subsidy and maximum top up

Employers are notified to ensure employees get the correct amount

Revenue will refund the applicable wage subsidy for eligible employees

Wage Subsidy Scheme

Operational Phase

!410 per week where the average net weekly pay is less than or equal to !586

The payment is capped at:

Wage Subsidy Scheme

Employee Payments

!350 where the average net weekly pay is greater than !586

Payments are liable to income tax by way of review at the end of the year by Revenue

Employees previously earning up to !586 net per week:

85% subsidy – where the ARNWP does not exceed !412

Up to !350 subsidy – ARNWP of more than !412 but less than !500

70% subsidy (capped at !410) –More than !500 but less than !585

Wage Subsidy Scheme

Subsidy Ratesfrom 4th May

Employees previously earning in excess of !586 net per week:

!350 subsidy – employer pays gross salary of up to 60%

!205 subsidy – employer pays gross salary between 60% & 80%

No subsidy – employer pays gross salary of more than 80%

Wage Subsidy Scheme

Subsidy Ratesfrom 4th May

COVID-19 & Payroll: What you need to know 7th May 2020

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Employees previously earning over !960 and current gross is reduced

Less than 20% – No subsidy is payable

Between 20% and 39% – A subsidy of up to !205 is payable

40% or more – A subsidy of up to !350 is available

Wage Subsidy Scheme

Subsidy Ratesfrom 4th May

Employee didn’t receive normal pay:Option to pay the appropriate wage without receiving a subsidy refund

Retrospective deletions and resubmissions may be subject to verification, rejection & penalties

Period for calculating an employees average weekly earnings: January & February 2020Temporary

COVID-19Wage Subsidy

Scheme

Ensures that no employee would be better off under the scheme

Exception – employer contribution: when added to subsidy amount it should not exceed !350 per week

The subsidy will be tapered if the gross pay + subsidy amount exceeds the average net weekly payTemporary

COVID-19Wage Subsidy

Scheme

Wage Subsidy Scheme

Revenue TWSS File

Employer will need to manually download a TWSS file from ROS

Revenue Instruction: TWSS File

Revenue will provide employers with details of maximum subsidy and maximum top up allowed

One-time download – based on January & February PSRs

Additional Resource

COVID-19 & Payroll: What you need to know 7th May 2020

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Must submit PSR on or before pay date to notify Revenue

Import TWSS file to automatically update subsidies of all J9 employees

Wage Subsidy Scheme

RevenueTWSS File

Revenue will refund the subsidy amount that each employee is eligible to receive

Seamless import with BrightPay & Thesaurus Payroll Manager Make sure the most recent RPN is

used & make submissions in line with payroll frequency

Tax & USC refunds – can be repaid by employer & Revenue will refund this amount to the employer

Submissions 4 days in advance will not be processed for refund until 4 days before the pay date

Wage Subsidy Scheme

Payroll Submissions

If receiving PUP – employee does not need to be ceased on the payroll

Re-hired employees qualify for TWSS if their PUP claim is ceased

Duplicate support cannot be claimed for an employee from DEASP

If receiving both, DEASP will cease Pandemic Unemployment Payment

Wage Subsidy Scheme

Duplicate Support

Although BrightPay & Thesaurus are a desktop solutions, they are very flexible and can facilitate working from home.

How BrightPay & Thesaurus can facilitate remote working

COVID-19 & Payroll: What you need to know 7th May 2020

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Payroll files can be accessed remotely through cloud environments such as Dropbox or Google Drive

BrightPay & Thesaurus can be installed on up to 10 different PCs

Remote Working with BrightPay

& ThesaurusAllows you to continue to process the payroll as normal

Additional Resource

Connect is proving to be hugely beneficial and enables full business continuity with secure communications.

How Connect’s online portals can help

Upload documents and resources to distribute to employees

Automatic cloud backup – access payroll info anywhere, anytime

How Connect can help

Notify employees of important announcements - can be viewed on the employee’s smartphone app

Business Continuity Voucher:https://www.localenterprise.ie/Portal/response/Business-Continuity-Voucher/Business-Continuity-Voucher.html

Employment Rights:https://www.gov.ie/en/publication/dfeb8f-list-of-essential-service-providers-under-new-public-health-guidelin/

Sample Employee Layoff Letter:https://www.thesaurus.ie/Template_Layoff_Letter.docx

BrightPay’s COVID-19 Resources Hub:https://www.brightpay.ie/pages/covid-19-resources

Working Remotely with BrightPay:https://www.brightpay.ie/guides/BrightPay%20IE%20Covid-19.pdf

Working Remotely with Thesaurus Payroll Manager:https://www.brightpay.ie/guides/Thesaurus%20Covid-19.pdf

TWSS Operational Phase - ROS Screens (Preview):https://www.thesaurus.ie/docs/2020/coronavirus-covid-19-guidance-for-thesaurus-users/twss-operational-phase-ros-screens-preview/

Additional Resources

COVID-19 & Payroll: What you need to know 7th May 2020

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Questions & Answers

Paul ByrneManaging Director

at BrightPay

Laura MurphyHR Manager &

Employment Law Expert

Audrey MooneyCustomer Support

Manager

Ruth KennedyPrincipal Officer at

Revenue Commissioners