Payroll bureau services

Deloitte can assist companies with transitioning their payroll services both internally and externally. Corporate reorganisations and mergers & acquisition transactions can sometimes mean intra-company movements of employees, which can give rise to payroll complications and merging of payroll functions.

Payroll process reviews and if needed improvements are a pre-requisite to any decision regarding whether processing payroll is done in-house or outsourced. A review of requirements versus current processes can be very beneficial and can help ensure that payroll is processed correctly and on time.

Things to consider:

• Pre-payroll processes.
• How is your payroll data feeding to your payroll team/system?
• In house payroll processing versus an outsourced payroll bureau.

What is payroll compliance?

Payroll compliance is ensuring that your business adheres to all payroll related legal regulations. This includes the processing of payroll and the filing of payroll related taxes. If you have employee’s, payroll compliance is one of the most important administrative tasks and if you are not compliant it can be extremely costly.

Key requirements:

• Understanding of local, payroll impacting legislation (real-time reporting requirements, Irish pension contribution limits)

• Strong internal standard operating procedures for the life cycle of the employee (hire to retire)

• Stay up to date on compliance changes (Revenue, CSO, Gender Pay Gap)

Best practices:

• Use payroll software for processing your payroll - configuration of mandatory Irish requirements is key

• Keep your team up to date on the fast-changing environment of payroll - reduce the risk of reporting errors - get it right first time!

• Know your deadlines for compliance - annual calendar with all key dates is a great way to manage the process

Additional reporting obligations will be introduced from 2024 (subject to commencement order), and will require employers to report details of the following tax-free payments or benefits made or provided to employees or directors:

1. Vouchers or benefits provided to an employee under the small benefit exemption (under which up to two tax-free vouchers or benefits with an aggregated value of not more than €1,000 (increased from €500) may be provided to an employee.
2. Remote working daily allowance – amounts of up to €3.20 per day to cover costs associated with working at home.
3. Amounts paid for work related travel and subsistence costs.

Revenue plans:

• Revenue systems are being updated to facilitate the additional reporting requirements.
• Revenue will be engaging with payroll software providers to ensure the payroll submissions that the software generates can include the additional items.
• Later in 2023, Regulations are to be published and there is to be engagement with employers, payroll operators and tax agents.
• Enhanced Reporting Requirements Effective from 1 January 2024

What is a Revenue compliance intervention?

The Code of Practice for Revenue Compliance Interventions is a set of guidelines for when Revenue is conducting compliance interventions. Revenue, taxpayers and tax practitioners must follow these guidelines. It covers all aspects of compliance.

Common reasons triggering potential audits:

• Gross Pay less than Pay for Income Tax

• Negative Gross Pay not processed correctly through system

• Pay date before submission date

• Out of date RPN

Potential root causes:

• User (human) error/manual intervention

• Pension contribution limits not calculation correctly through the software

• Configuration of software package (not compliant with Irish real-time reporting regulations)

Ways to reduce risk:

• Review your internal processes, automate and streamline where possible

• Have a robust 4 eye review in place for payroll sign off

• Use the Revenue window for amending payroll submissions if needed

• Health checks/PAYE reviews can be a great way of ensuring all elements of payroll have been processed correctly and that all taxable expenses have been identified.

Deloitte can offer assistance with Revenue audits and tax due diligence.