COVID-19 & Payroll: What you need to know 7th May 2020 COVID-19 & Payroll: Welcome What Employers Need To Know to today’s webinar Rachel Hynes Marketing Executive at Thesaurus Software / BrightPay Karen Bennett Paul Byrne Laura Murphy Audrey Mooney Ruth Kennedy Managing Director HR Manager & Customer Support Principal Officer at Head of Sales & Marketing at at BrightPay Employment Law Expert Manager Revenue Commissioners Thesaurus Software / BrightPay 1
COVID-19 & Payroll: What you need to know 7th May 2020 COVID-19 & Payroll: Questions Recording Email What Employers Need To Know Handouts Resources COVID-19 Income Support Scheme: COVID-19 Government Temporary Wage Subsidy to help affected companies keep Measures paying their employees COVID-19 & Employer Rights Pandemic Unemployment Payment for workers who have lost their jobs The government has announced a National COVID-19 Income Support Scheme Increased Illness Benefit Self-employed – eligible for Pandemic Unemployment Payment Additional Resource 2
COVID-19 & Payroll: What you need to know 7th May 2020 Layoff - a temporary measure - the individual is still an employee but not receiving any remuneration Putting Staff on Layoff Layoff or Normally the employee will return to Redundancy? their previous role on the same terms As a result of the recent business closures, and conditions many employees have been laid-off. An employee’s length of service is not impacted by the layoff Redundancy - when the employee Legislation on claiming redundancy loses their job permanently due to a has been changed during COVID-19 business closure / reduction in work Layoff or COVID-19 & Employees who have been laid off Typically, an employee may claim during the emergency period are Redundancy? Redundancy statutory redundancy where a layoff not able to claim redundancy situation lasts for: 4 weeks or more Emergency Period: 13 March 2020 to 31 May 2020 6 weeks in the last 13 weeks 3
COVID-19 & Payroll: What you need to know 7th May 2020 Employers should give employees Employees on layoff will accrue notice in writing that they will be put public holidays but not annual leave on layoff Putting staff Layoffs & Accrued annual leave remains intact Best practice is for employees to during layoff– employers should not on layoff Annual Leave have a layoff clause in their contract pay employees in lieu Consider a temporary layoff clause Try to be flexible in terms of allowing or letter getting confirmation from an employee to carry over leave the employee to the layoff Additional Resource Working hours reduced to 3 days or less – Short time Work Support COVID-19 Pandemic Unemployment Payment COVID-19 & Payment is made in respect of your regular salary for the days you are no Short Time Work longer working Available to employees and the self-employed who have lost their job due to the COVID-19 pandemic. Employers working short-time continue to accrue annual leave 4
COVID-19 & Payroll: What you need to know 7th May 2020 Aged 18 – 66 and lost your employment due to COVID-19 Available to employees and employers who have lost their job on COVID-19 COVID-19 or after 13 th March due to the Students, non-EEA nationals, Pandemic Pandemic COVID-19 pandemic part-time workers, casual workers Unemployment Unemployment Working casually and became Payment Payment fully unemployed Paid at a flat rate of € 350 per week for the duration of the pandemic Voluntary unpaid leave due to school / childcare closure You cannot claim if you are continuing to get income from Temporary COVID-19 your employment COVID-19 Wage Subsidy Scheme Pandemic You cannot claim if you Unemployment voluntarily left your employment (except to look after children) Payment Available to employers who may wish to receive financial support so that they can continue paying their employees. If diagnosed or self-isolating, apply for Illness Benefit: Increased to € 350 5
COVID-19 & Payroll: What you need to know 7th May 2020 Must be experiencing significant Operating from 26th March 2020 negative economic disruption and expected to last for 12 weeks due to COVID-19 Temporary Temporary COVID-19 COVID-19 Restricted to employees who were Must be able to demonstrate a on the employer’s payroll as at minimum 25% decline in turnover Wage Subsidy Wage Subsidy 29 February 2020 Scheme Scheme Must be unable to pay normal wages and normal outgoings fully A payroll submission must have been made to Revenue from 1 February 2020 to 15 March 2020 Must retain employees on the payroll Where no submission by 15 March, Transitional Phase: Revenue will allow access for 26 March 2020 to 3 May 2020 employers, provided: Wage Subsidy Temporary Scheme COVID-19 Employees were included on the Employers received € 410 per week payroll on 29 February 2020 per employee on PRSI Class J9 Wage Subsidy Transitional Scheme February 2020 PSR was submitted In many cases, this exceeded the Phase to Revenue before 1 April 2020 employees entitled subsidy amount PSRs for all previous months Revenue - perform a reconciliation submitted before 15 March 2020 to look for any overpayments 6
COVID-19 & Payroll: What you need to know 7th May 2020 The payment is capped at: Operational Phase: 4 May 2020 onwards € 410 per week where the average Wage Subsidy Wage Subsidy net weekly pay is less than or equal to € 586 Scheme Scheme Revenue will calculate maximum subsidy and maximum top up € 350 where the average net Operational Employee weekly pay is greater than € 586 Employers are notified to ensure Phase Payments employees get the correct amount Payments are liable to income tax by Revenue will refund the applicable way of review at the end of the year wage subsidy for eligible employees by Revenue Employees previously earning up to Employees previously earning in € 586 net per week: excess of € 586 net per week: Wage Subsidy Wage Subsidy Scheme Scheme 85% subsidy – where the ARNWP € 350 subsidy – employer pays does not exceed € 412 gross salary of up to 60% Subsidy Rates Subsidy Rates Up to € 350 subsidy – ARNWP of € 205 subsidy – employer pays from 4 th May from 4 th May more than € 412 but less than € 500 gross salary between 60% & 80% 70% subsidy (capped at € 410) – No subsidy – employer pays gross More than € 500 but less than € 585 salary of more than 80% 7
COVID-19 & Payroll: What you need to know 7th May 2020 Employees previously earning over Period for calculating an employees € 960 and current gross is reduced average weekly earnings: January & Wage Subsidy February 2020 Temporary Scheme COVID-19 Less than 20% – No subsidy is Employee didn’t receive normal pay: payable Wage Subsidy Option to pay the appropriate wage Subsidy Rates without receiving a subsidy refund Scheme Between 20% and 39% – A subsidy from 4 th May of up to € 205 is payable Retrospective deletions and 40% or more – A subsidy of up to resubmissions may be subject to € 350 is available verification, rejection & penalties The subsidy will be tapered if the Revenue Instruction: TWSS File gross pay + subsidy amount Revenue will provide employers exceeds the average net weekly pay Wage Subsidy Temporary with details of maximum subsidy and maximum top up allowed Scheme COVID-19 Ensures that no employee would be Wage Subsidy better off under the scheme Employer will need to manually Revenue Scheme download a TWSS file from ROS TWSS File Exception – employer contribution: One-time download – based on when added to subsidy amount it January & February PSRs should not exceed € 350 per week Additional Resource 8
COVID-19 & Payroll: What you need to know 7th May 2020 Import TWSS file to automatically Submissions 4 days in advance update subsidies of all J9 employees will not be processed for refund until 4 days before the pay date Wage Subsidy Wage Subsidy Seamless import with BrightPay & Scheme Scheme Thesaurus Payroll Manager Make sure the most recent RPN is used & make submissions in line with payroll frequency Revenue Must submit PSR on or before pay Payroll date to notify Revenue TWSS File Submissions Tax & USC refunds – can be repaid Revenue will refund the subsidy by employer & Revenue will refund amount that each employee is this amount to the employer eligible to receive Duplicate support cannot be claimed for an employee from DEASP How BrightPay & Thesaurus can Wage Subsidy If receiving PUP – employee does facilitate remote working Scheme not need to be ceased on the payroll Duplicate If receiving both, DEASP will cease Although BrightPay & Thesaurus are a desktop solutions, they are Pandemic Unemployment Payment Support very flexible and can facilitate working from home. Re-hired employees qualify for TWSS if their PUP claim is ceased 9
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