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For any business, ensuring compliance with relevant payroll rules and regulations is essential. Doing so maintains financial stability and helps in avoiding legal issues or penalties.
But what are the goals of payroll compliance and how do you maintain payroll accuracy? In this article, we look at the key aspects of payroll compliance in Ireland. We also provide you with the knowledge and tools to meet all necessary requirements.
Before getting into payroll compliance, let’s take a quick look at employment law in Ireland and how it affects payroll.
Employment laws are set out, so employers meet basic employee rights. Here, the term ‘employee’ can refer to two types of workers:
Those on a contract of service should receive all protections under employment law. Workers on a contract for services are not guaranteed the same rights, although legal protections exist. In both cases, there are certain payroll essentials to be mindful of.
There are some basics to managing payroll. You need to be able to calculate gross pay, taxes and other deductions, and deliver payment to employees directly.
But where does compliance with payroll regulations being? It begins by providing a new starter with a written statement of the core terms of employment within their first five days. You must provide a written statement of the remaining terms within one month of their start date.
Then there’s rates of pay. Most employees receive at least the minimum wage of €11.30 per hour. Still, rates differ depending on the employee. For instance, apprentices, people aged under 20, and people employed by close relatives may receive a different rate. You also need to factor in tax Universal Social Charge (USC), and PRSI when calculating pay.
Don’t forget to account for leave when calculating pay, either. Most employees receive annual leave and public holiday leave. Most employees also get four weeks of paid annual leave for each leave year. Part-time employees are generally entitled to 8% of the hours they have worked, up to four working weeks for each leave year.
Let's look at the legal framework and regulations that govern payroll in Ireland. The key components of payroll compliance include:
Yes, the steps above and adhering with payroll compliance legislation may seem tedious, but it has its benefits. These include:
As you can see, it’s crucial that you understand and adhere to the rules and regulations governing payroll. In doing so, you avoid penalties, maintain employee satisfaction, and ensure efficient financial management. Luckily for you there’s one software solution that does it all: MegaPay On-Cloud by SD Worx, formerly Intelligo.
Alongside the above, MegaPay On-Cloud also ensures that calculations are always correct and that records are accurate. It also removes the risk of human error and gives you the confidence that what you submit to Revenue is accurate. The benefits don’t stop there, either...
Looking for industry-leading payroll software that is more secure and cost efficient? Look no further than MegaPay On-Cloud. Standout features of MegaPay On-Cloud include:
Learn more about our MegaPay On-Cloud solution or book a demo today.