Trinity Business Assist Complete Business Outsourcing Services in Dublin CALL NOW 01-5311 466

Local Property Tax – Implications for Payroll Software & Payroll Companies

The Local Property Tax will have implications for Payroll Software & Payroll Companies will be coming into effect from the 01st of July 2013.This may be deducted through your payslip & Payroll Companies need to be able to administer this on behalf of their clients. We are happy to announce that we have now upgraded our payroll software to include the following amendments to support Local Property Tax. This will include:

  • The facility to specify LPT parameters on employee records
  • Support for the new P2C file format that includes LPT amounts to be deducted over a year (issued Since 15th June 2013);
  • New P30, P45, P35, and P60 layouts and/or ROS file formats;
  • Automatic calculation of LTP deduction (according to the Revenue requirements described in the LPT FAQ);
  • The facility to see how LPT deduction was worked out (in Timesheets);
  • Updated payslips, reports, and grids to print the LPT Deducted field;
  • The facility to see variances in overall LPT deducted versus what is expected to be deducted as per P2Cs.

As you may be aware, from 1st July 2013 Maternity Benefit, Adoptive Benefit & Health & Safety Benefit payable by the Department of Social Protection will be taxable in full. These payments will be taxable but will not be subject to USC or PRSI. The Revenue Commissioners have confirmed that employees in receipt of Maternity Benefit, Adoptive Benefit or Health & Safety Benefit will have their tax credit and standard rate cut-off point reduced to reflect the benefit they have received. As the benefit will be taxed by Revenue and not at source the recipients will continue to receive the same payment from the Department of Social Protection.

Employers will be advised of the adjusted tax credits and standard rate cut-off points on the tax credit certificates (P2C’s). As the benefit will be taxed by reducing the employee’s tax credits and standard rate cut off point, employers are NOT to include figures for the benefit on Revenue forms i.e. P45, P60 or P35L.

Therefore, no changes are required in our software for this change in taxation.