Archive for category: DCA News & Views

As we approach the festive party season, we want to take a moment to emphasise the importance of maintaining a safe and respectful environment during work-related social events. While these gatherings are meant to celebrate the hard work and achievements of the past year, it’s crucial for employers to uphold Health and Safety standards for all employees in attendance.

To mitigate the risk of issues such as bullying, harassment, and misconduct arising from these events, we recommend the following preventative measures:
• Inclusive Invitations:
Extend invitations to all employees, even those on extended leave. Inclusivity fosters a positive workplace culture.
• Reiterate Dignity at Work Policy:
Re-circulate the company’s Dignity at Work Policy ahead of any events, explicitly mentioning its applicability to work-related social events.
• Disciplinary Awareness:
Clearly outline the potential disciplinary actions, including dismissal, for breaches of the Dignity at Work policy during social events.
• Communication of Policies:

• Ensure employees are familiar with the company’s Disciplinary and Grievance Procedures, emphasising the importance of responsible behaviour.
• Re-circulate the social media Policy ahead of any events to prevent privacy infringements or damage to the company’s reputation resulting from online posts.
• Communicate the company’s Absence Policy for events scheduled on work nights, promoting responsible attendance.
• Brief management on policies and procedures, empowering them to address inappropriate behaviour should it occur.

• Conversation Guidelines:
Advise against discussions on sensitive topics to avoid potential conflicts.
• Accessible Venues:
Ensure event locations are accessible to all employees, including those with disabilities.
• Dietary Considerations:
Select venues that cater to various dietary requirements to accommodate all employees.
• Safe Transit Options:
Encourage safe transit home by providing details of local public transport or suggesting prebooking taxis.
• Zero Tolerance for Driving Under the Influence:
Take a strong stance against driving under the influence, prioritising the safety of all employees.
Additionally, in the spirit of inclusivity, consider rebranding the Christmas Party as an “End of Year Celebration” to make all employees feel welcome or make it clear that the celebration of Christmas is not a requirement of celebrating this event.

The pension landscape has undergone significant transformation over the past year. Before January 2023, any employer contributions to an employee’s Personal Retirement Savings Account (PRSA) were treated as a Benefit in Kind (BIK), unless the employee hadn’t exhausted their personal contribution limits. In that case, non-BIK employer contributions were allowed.

However, as of January 1, 2023, a remarkable change has occurred, there are no longer limits on employer contributions to an employee’s PRSA. This is groundbreaking news and represents one of the most substantial shifts in the pension landscape in two decades. It’s worth emphasizing that the standard fund threshold of €2.15 million remains applicable.

Earlier in the year, there were concerns about the continuity of this PRSA opportunity. However, Chapter 24.3 of the Revenue Manual has been updated to confirm that PRSA contributions are allowed without any BIK implications. This empowers employees and directors to maximize their personal contributions while also receiving employer contributions without facing penalties in the form of BIK.

Discussions about implementing auto-enrolment are ongoing, with the launch scheduled for Q3 2024. Live implementation may not occur until 2025. Employers are strongly advised to consult a financial advisor promptly to clarify their options and establish funding objectives for their employees’ pensions.

The proposed auto-enrolment plan would encompass anyone earning over €20,000 annually and aged between 23 and 60, involving them in a private pension scheme. Initially, as many as 800,000 workers are expected to be affected once the scheme becomes operational.

However, there are concerns that this may not be the ideal solution for everyone involved, and some employers might find an employer-sponsored PRSA or group Defined Contribution (DC) scheme to be a better fit.

Here are some noteworthy points to consider:

• There is no tax relief at either 20% or 40% on employee contributions, as there would be with a personal pension.
• Once enrolled, individuals cannot opt out, with a maximum suspension period of two years.
• Employees in their probation period with a new employer who have not yet joined the company pension scheme will be automatically enrolled.
• Investment choices are not available, and the government determines how the funds are invested.
• Access to savings is only possible at the state pension age.
• Transfers in or out of the government pension scheme are not permitted.
• Additional contributions cannot be made.

It’s important to note that these points may undergo changes, this inflexible structure may not be the most suitable option for all. Therefore, it is crucial for all employers to consult a financial advisor in the coming months to determine the best course of action for their company.

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We hope that this information has been useful for you and as always, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. Please do not hesitate to contact us.

Section 9 of Finance Act 2022 introduced the requirement for notifications by employers to Revenue in relation to certain reportable benefits.
This is a new reporting requirement, defining reportable benefits as:

1. a small benefit
2. a remote working daily allowance, or
3. a travel and subsistence payment

The introduction of the reporting requirement is subject to commencement order, with the target date of 1st January 2024. Regulations are made under s986 and can only be made when commencement order takes effect, likely to be available before year-end.

• Only incurred expenses will need to be reported. The use of a company credit card or prepaid cards is currently not within the scope of ERR as it does not involve a payment to the EE by the ER.
• Only reporting of payments made to employees or directors as set out in the legislation will be required. Payments to individuals who are neither an employee or director are currently not within the scope of the ERR.
• Items such as fuel cards, toll tags, car insurance and motor tax if paid by the employer are currently not within the scope of ERR as no payment has been made to an employee or director.
• Any payment made which exceeds the thresholds will be subject to the normal rules for taxable payments.

Employers will need to develop and/or update their expense systems to ensure it can capture the detail to be reported to Revenue. Where the employer’s expense system is not able to extract the required level of detail, the submission may be rejected or require a manual update of individual ERR submissions.

‘The requirement to disclose reportable benefits ‘on or before’ they are paid or provided to the employees/directors means employers will need to ensure there is timely communication between the various areas of the business providing these benefits (e.g., the expense team/finance team/line management) and the team responsible for ERR (whether that is payroll or Finance or an external payroll agent).

For vouchers and non-cash benefits which will avail of the small benefit exemption, this requires that, in advance of a voucher/hamper/gift being provided to an employee or director, the relevant team or person providing that benefit must have notified the internal team responsible for ERR.

For payments to employees/directors in respect of non-taxable Travel and/or Subsistence, employers will need to consider internal processes around the timing of such payments, i.e., a set payment date per month, to ensure the relevant team responsible for ERR has been notified of the details of such payments before they are made to employees/directors.

Employers need to review their current procedures around the relevant benefits/expenses and begin to map out processes to be followed that will enable the organisation to comply with the new requirements.

Some areas for consideration include the following:

• How frequently employers are paying out these types of payments?
• Should the frequency of these payments be standardised in light of the ‘on or before’ requirement?
• Which teams and areas of the business are making these payments and are they interacting regularly with payroll?
• Should internal controls be reviewed to ensure the relevant payments will be captured?
• Are the existing policies/procedures in respect of remote working, travel and subsistence, and the small benefit exemption compliant with current Revenue rules? For example, who is reviewing eligibility for the small benefit exemption and are awards tracked and documented to ensure no employee receives more than the allowable amount?
• Are current policies/procedures being followed in practice?

Taking the above into consideration, employers should set out a formal policy or process which sets out the roles, responsibilities and actions required from each of the relevant areas of the business. Staff will need to be upskilled and made aware of their new responsibilities to ensure the correct information is reported at the correct time.

• Collection Agents appointed to deducted withholding tax @ 20% from rents and remit to revenue via new withholding tax platform.
• Where tenants pay rents directly to a non-resident landlord they will be required to withhold and remit 20% tax via the new withholding tax platform
• The non-resident landlord is required to file their own income tax return.
• The Collection Agents is no longer responsible for submitting a return on behalf of the non-resident individual.
• Non-resident landlord will be required to confirm the following to the Collection Agent/Tenant
  • confirm their non-resident status.
  • Their tax reference number
  • LPT property ID