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SCHOOL ADMINISTRATION PERSONNEL TRAINING

2015

Revenue Compliance – Payroll

Brief Guide

Please contact the JMB/FSSU for advice. This information is for general guidance only. 1


Index Page No.

Payroll Introduction 2

Payroll Procedures 3

Determining Employee and Self Employed status 5

Criteria on whether an individual is an employee 8

Criteria on whether an individual is self-employed 9 Income Tax (PAYE)

10 Universal Social Charge (USC)

13 Pay Related Social Insurance (PRSI)

15 PRD (Public Service Pension-related Deduction)

17 Revised Salary Scales

18 Supervision and Substitution Rates of Pay

20

National minimum wage 21

Small Gift/Benefit 22

Holiday Entitlements 23

Public/Bank Holidays 24

Redundancy 25

Register of Employees 27

Statutory Employment Records 29

Employee Personal Details 30

Revenue Tax credits 31

Sample Form 12A 32

Sample P30 33

Sample P60 34

Sample P45 35

Sample Redundancy Form RP50 36

Sample P35 37

Taxation- Social Welfare Payments 38


Payroll Introduction

You will be responsible to prepare payroll for staff of the school such as Caretakers

and Part-Time Teachers. Payroll is one of the most responsible roles for someone

working in School administration. It requires confidentiality and accuracy.

All remuneration payments made by the school must be Revenue compliant.

Payments made to teachers and other personnel for services such as after school study

are subject to tax, USC and PRSI.

Wages and salaries paid to clerical staff, caretakers, cleaners or any other school

employees should be approved by the Principal who can confirm that the service has

been provided and that the wages / salaries are properly due.

All payments made to teachers and others who are employed as Examination Aides

and as additional examination supervisors are subject to deductions of income tax ,

USC and PRSI.

The income tax year commences on 1st January and ends on the following 31st

December.

The information in this handout is a summary of the main issues that

relate to payroll in a school and is for guidance only.

For more detailed information please contact the relevant authorities

website.


PAYROLL PROCEDURES

1. Schools must be compliant with all employment law, revenue legislation and Social

Welfare regulations.

2. The following are the step-by-step processing instructions for processing payroll

accurately and in compliance with all applicable laws.

Employee Set-up

a. Ensure the new employee completes the Employee Personal Details form

b. Check the rate of pay etc. with the Principal

c. Set up the employee details on the payroll system.

d. Enter the employees P45 details and notify Revenue on ROS

e. If the employee does not have a P45: Enter the employees PPS number on the

system and notify ROS .

f. If the employee does not have a P45 or PPS no. Advise the employee to obtain a

PPS No. and file a form 12A

Processing the payroll

Collect and prepare the time sheets for input into the payroll system.

a. Give the time sheets to the Principal for approval before inputting

b. Ensure all requests for holidays are approved by the Principal

c. Get an update from the principal on any employee out on sick leave and

ensure medical certificates are received and filed.

d. Input the information on the payroll system.

e. Statement of Tax Credits for each employee will be issued by the Revenue

Commissioners for the current tax year through ROS.

Payroll Reports

Print the reports from the system:

i. Gross to Nett Report

ii. Payslips

iii. EFT transfer report

iv. Control Summary

(The payroll system you use may use different names for these reports.)

b. Compare the details on the reports with the timesheets and other input

data. Ensure that the employee is processed for the correct hours,

weekly pay, holidays etc. before proceeding.

c. Print the Payslips

d. Write the cheques or upload the file to the internet banking for

payment.


e. Get the Principal to sign the cheques /approve the online payments and

to sign a copy of the Gross to Net report.

f. Lock the signed cheques in the safe until they are issued.

g. Issue the payslips (and cheques) to the employees

Filing

a. A separate file should be set up for each employee

b. File the Employee Personnel Details form, Medical certs, holiday request

forms, copy of P45 etc. on the employees file

c. File the timesheets, P45’s, Employee Personnel Details form etc. on the

weekly payroll file

d. File the copy payslips, Gross to Nett report, Control Summary report on

the weekly payroll file.

e. Print the report from the online Banking and file on the weekly payroll

file.

f. All other relevant documentation should be filed here.

Monthly

a. Print off the report for the monthly P30 from the payroll system and file on

the Revenue Payroll file

b. Complete the P30 on ROS and submit it.

c. Print of a copy of the P30 submitted and file on the Revenue Payroll file.

Annual (a) Complete the wages for all payroll weeks (52 or 53) for the year

(b) Follow the guidelines for processing the year end issued by your payroll

provider

(c) Print the P35L and check the employee details

1. Employee Name

2. PPS number

3. Gross Pay, Tax , USC, PRSI ee and Total PRSI

4. PRSI Class ( A1, A0, J1)

5. Number of Weeks employed

6. Commencement and Cessation dates.

(d) When you are satisfied that the records are correct

1. Print the P35L, P35 and P60’s and File on the Payroll year end

file.

2. Give each employee their P60 by the 31st January

3. File the P35 and P35L on ROS

4. Print the ROS acknowledgment from the email and file.


Determining Employee and Self Employed status

The FSSU has received a number of requests from schools for assistance in dealing with

correspondence from the Revenue. Schools must ensure that all payments made by them are

fully Revenue compliant. There are some grey areas where schools need to satisfy themselves

that the school is fully compliant.

1. Engaging the Services of External Personnel

Many schools engage the services of external personnel for Transition Year

modules, Drama, Music, Sports Coaching etc.

The Revenue are concerned that there may be an increasing numbers of individuals

classified as ‘self-employed’ when the ‘signs’ may be that ‘employee’ status would be

more appropriate. The terms “employed” and “self-employed” are not defined in law.

The decision as to which category an individual belongs must be arrived at by looking

at what the individual actually does, the way he or she does it and the terms and

conditions under which he or she is engaged, be they written, verbal or implied or a

combination of all three.

Certain statements included in the contract and other notes of engagement such as

“ deemed to be an independent contractor”,

“ It shall be the duty of the demonstrator to pay and discharge such taxes and

charges as may be payable out of such fees to the Revenue Commissioners or

otherwise”,

“It is further agreed that the provisions of the Unfair Dismissals Act1997 shall

not apply etc.”

“You will not be an employee of Kerry Foods” ,

“You will be responsible for your own tax affairs”,

are not considered contractual terms in Irish Case Law. In other words, the fact that

such or similar terms are included in a contract is of little value in coming to a

conclusion as to the work status of the person engaged.

2. Deciding on whether an Individual is an Employee or Self Employed

It is important that the job as a whole is looked at including working conditions and

the reality of the relationship, when considering the guidelines. The overriding

consideration or test will always be whether the person performing the work does so

“as a person in business on their own account.” Is the person a free agent with an

economic independence of the person engaging the service?

There are a number of factors to be considered when determining the status of

an individual and these are attached. See Appendix A and B


3. The impact of the decision for the individual

The status as an employee or self-employed person will affect:

1. The way in which Tax, PRSI and USC is payable to the Collector-General

i. An employee will have Tax, PRSI and USC deducted from his or her

income.

b. A self-employed person is obliged to pay preliminary tax and file

income tax returns whether or not he or she is asked for them.

2. Entitlement to a number of social welfare benefits, such as unemployment and

disability benefits. An employee will be entitled to unemployment, disability

and invalidity benefits, whereas a self-employed person will not have these

entitlements.

3. Other rights and entitlements, for example, under Employment Legislation

An employee will have rights in respect of working hours, holidays, maternity

/ parental leave, protection from unfair dismissal etc. A self-employed person

will not have these rights and protection.

4. Insurance - Public liability in respect of the work done.

4. The cost implications for the school

Normally it will be obvious if the person is self-employed or going to be an employee

of the school. However it is imperative that the school ensures that a person appointed

to perform a service is correctly classified as an employee or self-employed

particularly where there is uncertainty.

Employers are obliged to operate the system correctly and there are various

penalties imposed on employers found in breach of the system.

1. Under Tax and Social Welfare law if the status of ‘employee’ is found to be

appropriate the person engaging the ‘employee’ is the accountable person for

any PAYE Tax, PRSI and USC deductible while that person was engaged

(whether or not any deductions were made) together with appropriate interest

and penalties that may arise.

2. There may also be penalties under various Employment Legislation if a

person’s employment status is wrongly classified.

5. Further Assistance for determining status.

There may, in certain cases, be a difference of opinion between the school, the

individual, that of the Revenue Commissioners, the Department of Social,

Community and Family Affairs or Employment and Industrial Relations legislation on

which classification the individual belongs.

Where there are difficulties in deciding the appropriate status of an individual or

groups of individuals, the following bodies can provide assistance.


The Local Tax Office or The Local Social Welfare Office, (a listing of Tax and Social

Welfare Offices is in the telephone book).

Scope Section in the Department of Social, Community and Family Affairs may also

be contacted for assistance.

If a formal decision is required, relevant facts will have to be established and a written

decision as to status issued.

A decision by one Department will generally be accepted by the other, provided all

relevant facts were given at the time and the circumstances remain the same and it is

accepted that the correct legal principles have been applied to the facts established.

However, because of the varied nature of circumstances that arise and the different

statutory provisions, such a consensus may not be possible in every case.


Appendix A

Criteria on whether an individual is an employee

While all of the following factors may not apply, an individual would normally be an

employee if he or she:

1. Is under the control of another person who directs as to how, when and where the work is

to be carried out

2. Supplies labour only

3. Receives a fixed hourly/weekly/monthly wage

4. Cannot sub-contract the work. If the work can be subcontracted and paid on by the person

subcontracting the work, the employer/employee relationship may simply be transferred on.

5. Does not supply materials for the job

6. Does not provide equipment other than the small tools of the trade. The provision of tools

or equipment might not have a significant bearing on coming to a conclusion that

employment status may be appropriate having regard to all the circumstances of a particular

case.

7. Is not exposed to personal financial risk in carrying out the work

8. Does not assume any responsibility for investment and management in the business

9. Does not have the opportunity to profit from sound management in the scheduling of

engagements or in the performance of tasks arising from the engagements

10. Works set hours or a given number of hours per week or month

11. Works for one person or for one business

12. Receives expense payments to cover subsistence and/or travel expenses

13. Is entitled to extra pay or time off for overtime.

Additional factors to be considered:

1. An individual could have considerable freedom and independence in carrying out

work and still remain an employee

2. An employee with specialist knowledge may not be directed as to how the work is

carried out

3. An individual who is paid by commission, by share, or by piecework, or in some

other atypical fashion may still be regarded as an employee

4. Some employees work for more than one employer at the same time.

5. Some employees do not work on the employer’s premises

6. There are special PRSI rules for the employment of family members


Appendix B

Criteria on whether an individual is self-employed

While all of the following factors may not apply to the job, an individual would normally be

self-employed if he or she:

1. Owns his or her own business

2. Is exposed to financial risk, by having to bear the cost of making good faulty or

substandard work carried out under the contract

3. Assumes responsibility for investment and management in the enterprise

4 .Has the opportunity to profit from sound management in the scheduling and performance

of engagements and tasks

5. Has control over what is done, how it is done, when and where it is done and whether he or

she does it personally

6. Is free to hire other people, on his or her terms, to do the work which has been agreed to be

undertaken

7. Can provide the same services to more than one person or business at the same time

8. Provides the materials for the job

9. Provides equipment and machinery necessary for the job, other than the small tools of the

trade or equipment which in an overall context would not be an indicator of a person in

business on their own account

10. Has a fixed place of business where materials equipment etc. can be stored

11. Costs and agrees a price for the job

12. Provides his or her own insurance cover e.g. public liability etc.

13. Controls the hours of work in fulfilling the job obligations.

Additional factors to be considered:

1. Generally an individual should satisfy the self-employed guidelines above, otherwise he or

she will normally be an employee

2. The fact that an individual has registered as self-employed or for VAT under the principles

of self-assessment does not automatically mean that he or she is self-employed

3. An office holder, such as a company director, will be taxed under the PAYE system.

However, the terms and conditions may have to be examined by the Scope Section of

Department of Social, Community and Family Affairs to decide the appropriate PRSI Class.

5. It should be noted that a person who is a self-employed contractor in one job is not

necessarily self-employed in the next job. It is also possible to be employed and self-

employed at the same time in different jobs.


Income Tax (PAYE)

1. Budget 2015 It was announced in Budget 2015 that the standard rate tax band will increase by

€1,000 from €32,800 to €33,800 for single individuals and from €41,800 to €42,800

for married couples with one income from January 2015. The higher rate of income

tax will reduce from 41% to 40%.

2. Income that is assessed for tax Under the PAYE system, income tax is charged on all wages, fees, perks, profits or

pensions and most types of interest. Tax is payable on earnings of all kinds that result

from employment (including for example, bonuses, overtime, Christmas bonuses

etc.).

The amount of tax that an employee pays depends on the amount of the income that

they earn and on their personal circumstances. There are a range of income tax reliefs

available that can reduce the amount of tax that they have to pay.

At the start of the tax year, the Revenue Commissioners will send a Notice of

determination of tax credits (P2C) and standard rate cut-off point to the employer.so

that the employer can deduct the correct amount of tax. If the employee’s

circumstances change during the year Revenue will issue a revised certificate.

Tax credits reduce the amount of tax that an employee has to pay. Tax credits are

deducted after your tax has been calculated.

3. New Employees

It is extremely important that an employer notifies Revenue when a new employee

commences employment and it is not good practice for an employee to remain on a

week 1/month 1 basis for an unnecessary period of time.

A person taking up employment or resuming employment after a previous

cessation should be asked for parts 2 and 3 of form P45.

Where the new employee has not supplied a Form P45 and has a PPS Number.

Notify the employee's Revenue office by Form P46 - or by phone to request a tax

credit certificate. In the meantime the emergency basis of tax deduction must be

operated

The first-time employee will be asked to complete a Form 12A - Application for a

Certificate of Tax Credits and Standard Rate Cut-Off Point. The employee will be

taxed on a temporary basis called emergency tax until the Notice of Tax Credits is

received.

4. Tax rates and the standard rate cut-off point Tax is charged as a percentage of income. The percentage depends on the amount of

income. The first part of income, up to a certain amount, is taxed at 20%. This is

known as the standard rate of tax and the amount that it applies to is known as the

standard rate tax band.

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/credits_and_reliefs/

http://www.revenue.ie/en/tax/it/forms/p46.pdf

http://www.revenue.ie/en/tax/it/forms/form12a.pdf

http://www.revenue.ie/en/tax/it/forms/form12a.pdf


The remainder of the income is taxed at the higher rate of tax, 40% in 2015.

Standard rate cut-off points

2015

20% 40%

Single person €33,800 Balance

Married couple/civil

partners, one income €42,800 Balance

Married couple/civil

partners, two incomes

Up to €67,600

(increase limited to the

amount of the

second income - see

example below)

Balance

One parent family €37,800 Balance

5. Tax exemption limits for people aged 65 and over Exemption limits are income limits below which no tax is payable.

Annual exemption limits for people aged 65 and over

Status 2014

Single or widowed or surviving civil

partner €18,000

Married or in a civil partnership €36,000

First two children €575

each

Subsequent children €830

each

If you expect that the income for the year will be less than these limits, the employee

should contact Revenue and they will issue a revised determination of tax credits to

you.

There is no income tax exemption for low income earners under 65

6. Emergency basis Different rules for emergency tax apply depending on whether or not the employee

has provided the employer with their PPS number.

Where the employee does not provide their PPS number

Where the employee does not provide their PPS Number, the higher rate of tax

applies to all earnings.

http://www.revenue.ie/en/tax/it/leaflets/it8.html


Tax credits and standard rate cut-off point for employees that have not provided their

PPS number

Week or month Standard rate cut-off point Tax credit

All Nil Nil

Where the employee provides their PPS number

Where the employee provides their PPS number the provisional tax credits and standard rate

cut-off point to be granted are as outlined in the following tables for weekly, monthly,

fortnightly, four-weekly and twice-monthly paid employees.

The rates at which tax is to be deducted are the rates of the standard rate of income tax

and the higher rate of income tax in force for the relevant year.

Weekly Paid

Week of employment Weekly standard rate cut-off point Weekly tax credit

First 1/52nd of single personal standard rate cut-

off point

1/52nd of single personal tax

credit

Second As for first week As for first week

Third As for first week As for first week

Fourth As for first week As for first week

Weeks 5 to 8 inclusive As for first week Nil

Week 9 and subsequent

weeks Nil Nil


Universal Social Charge (USC)

Budget 2015-Changes to the USC were announced in Budget 2015.

The Universal Social Charge (USC) is a tax you pay if your gross income is more than

€12,012 per year. Once your income is over this limit, you pay the relevant rate of USC on all

of your income.

Employer Tax Credit Certificates (P2Cs), as well as displaying PAYE rates and cut-off

points, also show USC rates and cut-off points. The Revenue will inform the employer of any

changes and will issue a revised Tax Credit Certificate.

Exemptions:

1. All Department of Social Protection payments, including Maternity Benefit and State

pensions, are exempt from the Universal Social Charge.

2. If you are 70 or over or a medical card holder under 70 and your aggregate income for

the year is €60,000 or less you pay a reduced rate of USC (See Note 1)

3. Statutory redundancy payments are exempt from the charge.

The Universal Social Charge is payable on all employee pension contributions and employer

PRSA contributions. (see Note 2)

Rates

If your income is less than €12,012 you pay no Universal Social Charge (USC). Once your

income is over this limit, you pay the relevant rate of USC on all of your income.

Emergency USC Rate 8%

Standard rate of USC (2015)

Rate Income band

1.5% Up to €12,012

3.5% From €12,012.01 to €17,576.00

7% From €17,576.01 to €70,044.00

8% From €70,044.01 to €100,000.00

8% Any PAYE income over €100,000

8% Emergency USC Rate

Reduced rate of USC (2015)

Rate Income band

1.5% Income up to €12,012

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/maternity_benefit.html

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/older_and_retired_people/


http://www.citizensinformation.ie/en/employment/unemployment_and_redundancy/redundancy/redundancy_payments.html


3.5% All income over €12,012.00

Note 1: Reduced rates of USC apply to:

People aged 70 or over whose aggregate income for the year is €60,000 or less

Medical card holders under 70 whose aggregate income for the year is €60,000 or less

‘Aggregate’ income for USC purposes does not include payments from the Department of

Social Protection.

You must hold a full medical card (including a Health Amendment Act Card) to qualify for

the reduced rate. People who hold a GP Visit Card, a Drugs Payment Scheme Card, a

European Health Insurance Card or a Long-term Illness Scheme Card do not qualify for

the reduced rate.

If a person reaches 70 years at any stage during the year they will benefit from the

maximum 3.5% rate for the whole year.

Note 2: Pension contributions

Approved Retirement Benefit Scheme - An employer’s or pension provider’s contribution

to an approved retirement benefit scheme is not liable to the Universal Social Charge, but

an employee's contributions are.

PRSA - If an employer or pension provider makes a contribution on your behalf to your

Personal Retirement Savings Account (PRSA) it is treated as a taxable benefit-in-kind. As

the Universal Social Charge treatment follows the income tax treatment, the employer or

pension provider’s contribution to the personal retirement savings account will also be

subject to the Universal Social Charge.

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/pensions/personal_retirement_savings_accounts.html


Pay Related Social Insurance (PRSI)

PRSI classes and people insured in each class

Most people pay Class A PRSI. It applies to people in industrial, commercial and service type

employment who are employed under a contract of service with a reckonable pay of €38 or

more per week from employment. It also includes civil and public servants recruited from 6

April 1995.

Class A does not apply to people in insurable employment over 66 years of age. They are

insurable under Class J.

Rates of Contribution from 1 January 2015

The amount of PRSI you pay will depend on your earnings and the class you are insured

under.

Class A applies to people in industrial, commercial and service type employment who are

employed under a contract of service with a reckonable pay of €38 or more per week from

employment. It also includes civil and public servants recruited from 6 April 1995. In fact,

most employees in Ireland pay PRSI Class A. People on CE schemes pay a special

contribution at Class A8/A9.

This covers employees under the age of 66 in industrial, commercial and service-type

employment who have reckonable pay of €38 or more per week from all employments as

well as Public Servants recruited from 6 April 1995.

Weekly pay is the employee's money pay plus notional pay (if applicable).

Subclass AO

Weekly pay Band

(See note below) How much of weekly pay

All income

Employee

All income

Employer

€38 - €352 inclusive All Nil 8.50%

Subclass AL

Weekly pay Band


All income

Employee

All income

Employer

€356.01 - €500 inclusive All 4.00% 10.75%

Subclass AX

Weekly pay Band


All income

Employee

All income

Employer

€352.01 - €356 inclusive All 4.00% 8.50%

Subclass A1

http://www.welfare.ie/EN/Publications/SW14/SW14_11/Pages/ClassA.aspx

http://www.welfare.ie/en/Pages/Class-A-2015.aspx#note




Note: Share-based remuneration may in certain circumstances be subject to employee PRSI. Employer's PRSI is

not chargeable on share-based remuneration.

Community Employment participants only

Subclass A8

Weekly pay Band How much of weekly pay All income

Employee

All income

Employer

Up to €352 inclusive All Nil 0.50%

Class J

This normally relates to people with reckonable pay of less than €38 per week (from all

employments). However, a small number of employees are insurable at Class J, no matter

how much they earn, such as employees aged 66 or over or people in subsidiary employment

applies to people earning less than €38 per week.

people aged over 66 or people in subsidiary employment are always insurable at

Class J, no matter how much they earn.

Subsidiary employment for Class J is for example, people who are insurable at Class,

D (teachers in their main employment.

Payments related to the State Examinations are all at the Class J rate

Subclass JO


Employee *

All income

Employer *

Up to €500 inclusive All Nil 0.50%

Subclass J1


Employee

All income

Employer

More than €500 All Nil 0.50

Weekly pay Band


All income

Employee

All income

Employer

More than €500 All 4.00% 10.75%

Subclass A9


Employee

All income

Employer

More than €352 All 4.00% 0.50%

http://www.welfare.ie/EN/Publications/SW14/SW14_11/Pages/ClassJ.aspx



Class D applies to permanent and pensionable employees in the public service (including

Teachers) recruited before 6 April 1995.

PRD (Public Service Pension-related Deduction)

The PRD is governed by the Financial Emergency Measures in the Public Interest Act 2009. The

Act defines a person to whom the PRD applies as a person who

i. is a public servant, and,

ii. is a member of a public service pension scheme, or,

iii. is entitled to a benefit under a public service pension scheme, or,

iv. Receives a payment in lieu of membership of a public service pension scheme.

All teaching and non -teaching staff who are members of a public service pension scheme, are

liable for PRD.

Employee PRD Status Form

All employees should complete Form DES_PRD10. It is a declaration of an individual’s status with

regard to any public service pension scheme. It also is a declaration of an individual’s main and

subsidiary employers where an individual has more than one public service employment If your

main employment is a public service employment then all of your earnings from the state funds,

which for the purposes of the PRD is classed as a subsidiary employment, will have the PRD

applied at the top rate of 10.5%.

Payroll: From 1st January 2011, the pension-related deduction (PRD) which is charged to earnings

in the public service will be subject to employee PRSI and the Universal Social Charge (USC).

Tax Relief is allowed on the Pension Related Deduction enabling the employee to get tax relief at

the appropriate rates.

PRD Rates

The amended table that will apply to PRD rates with effect from 1st January 2014 is as follows:

Measure Bands Rates

Pension-Related Deduction €15,000

€15,000 – €20,000

€20,000 – €60,000

Above €60,000

Exempt

2.5%

10.0%

10.5%

http://www.welfare.ie/EN/Publications/SW14/SW14_11/Pages/ClassD.aspx

http://www.education.ie/en/Education-Staff/Services/Payroll-Financial/Payroll-Documents-and-Forms/pay_form_PRD10.pdf


Emergency PRD rate is 10.5%

Revised Salary Scales for Privately Paid Non-Teaching Staff

in Voluntary Secondary Schools

As outlined in JMB Bulletin 13, the Department of Education and Skills has issued Circular

0070/2010 which states that all staff employed in a recognised school must be subject to the

pay reductions set out in the Financial Emergency Measures in the Public Interest Act 2009.

The reductions apply to all staff employed in a recognised school including all secretarial and

administrative staff, caretaking staff and cleaners.

All staff employed in recognised schools are classified as “public servants” solely for the

purpose of the Act. The school’s Board of Management is the employer of all school staff and

determines their terms and conditions of employment. Nevertheless, the reduction applies

regardless of the source of money used to fund the salaries and irrespective of whether or not

they are eligible for, or are members of, a public service pension scheme.

In accordance with the Act, reductions in salary should be applied to all school staff with

effect from January 1, 2011 as follows:

5% on the first €30,000 of salary

7.5% on the next €40,000 of salary

10% on the balance.

The reductions apply to all basic pay and allowances such as overtime and call-out payments.

Revised daily and hourly rates for casual and non-casual staff also apply on a pro rata basis.


JMB Recommended Salary Scales for Privately Paid

School Secretaries and Caretakers Applicable from January 1, 2011

Secretaries Caretakers

Grade 111 Grade 1V

Year € Year € Year €

1 21,371 1 26,110 1 24,866

2 22,372 2 28,014 2 25,008

3 23,373 3 29,898 3 25,144

4 25,145 4 31,293 4 25,230

5 24,922 5 33,572 5 25,316

6 26,382 6 34,462 6 25,405

7 26,879 7 35,781 7 25,493

8 28,589 8 37,115 8 25,596

9 29,037 11 38,322 9 25,678

10 29,900 14 39,587 10 25,773

11 31,318 11 25,871

13 33,175 12 25,935

15 34,472 13 26,050

To calculate weekly rates, divide relevant annual rate by 52.18.

To calculate hourly rates, divide weekly rate by 39.

The pay of any part-time staff or hourly paid staff should also be reduced on a pro rata

basis.

The new recommended rate for cleaners is €11.75 per hour. The minimum wage rate

will be set at €7.65 per hour from January 1, 2011. All rates of pay listed above are only

guidelines and individual schools as private sector employers are entitled to make their

own arrangements with individual employees.

Fergus Dunne, Director,


JMB Financial Support Services Unit

December 1, 2010

Supervision and Substitution Rates of Pay

The following are the rates of payment, to be made by the school, to DES paid teachers who

undertake supervision and substitution duties which are additional to their obligations under the

HRA. This rate includes holiday pay.

COLUMN A COLUMN B

DES Paid

Teachers

Rate per hour € Rate including

Employer PRSI

10.75% €

DES Paid prior

to 1st January

2011

47.82 52.96

DES Entrant

between 1st

January 2011

and 31st

January 2012

i.e. New Entrant

43.04 47.67

DES Entrant

since 1st

February 2012

i.e. New

Beneficiary

32.49 35.98

The following is the supervisor’s rate: The supervisors’ rate is €21.31 for those employed prior to

January 1st 2011 and is €19.18 for those employed after January 1st 2011. However, this rate does

not include holiday pay. The figure in Column A below has been adjusted to include the holiday

pay amount.

COLUMN A COLUMN B

inclusive of

employer PRSI

Employed prior

to January 1st

2011

23.01 25.48

Employed after

1st January

2011

20.71 22.94

The hourly rate payable including holiday pay is in Column A. The hourly rate including

employer PRSI is in Column B. The rate in Column B is the cost of each hour to the school as the

school pays the employer PRSI. This should be considered when calculating the amount of grant

available to spend.


Failure to incorporate this cost will result in the school overspending the grant by 10.75%.

National minimum wage

The National Minimum Wage Act 2000 provides that the minimum wage rate for an

experienced adult employee from 1 July 2007 is €8.65 an hour, (was €8.30). An experienced

adult employee for the purposes of the National Minimum Wage Act is an employee who has

an employment of any kind in any 2 years over the age of 18. (See also “Rates” section

below).

Of course the national minimum wage (NMW) does not stop an employer from offering a

higher wage.

Sub-minimum rates from 1 July 2007

These are the legal minimum rates of pay in Ireland for 2015

Experienced adult worker €8.65 per hour

Over 19 and in 2nd year of first employment €7.79

Over 18 and in first year of first employment €6.92

Aged under 18 €6.06 per hour

Trainees:

Employee aged over 18, in structured training during working hours

1st one third of course €6.49 an hour

2nd third of course €6.92

3rd part of course €7.79

These minimum wage rates have been in effect since July 2011 and are valid during 2015

too.


Small Gift / Benefit

Where an employer provides an employee with a small benefit (that is, a benefit with a value

not exceeding a €250) PAYE, USC and PRSI need not be applied to that benefit.

No more than one such benefit given to an employee in a tax year will qualify for

such treatment.

The Benefit /gift must be a voucher ( e.g. One4All) or a gift (e.g. Christmas Hamper)

Where a benefit exceeds €250 in value the full value of the benefit is to be subjected

to PAYE. USC and PRSI.

THIS CONCESSION DOES NOT APPLY TO CASH/CHEQUE PAYMENTS

REGARDLESS OF THE AMOUNT

The small benefits relief applies to a one off benefit in the year.

If an employer is providing small benefits on an ongoing basis, e.g. €25 voucher every

so often, the first voucher may be ignored and all subsequent vouchers must be taken

into account as notional pay and processed through the payroll.

If the employer gives one voucher for €350, the value of that voucher (the entire

€350) must be taken as notional pay and processed through the payroll.


Holiday Entitlements

The entitlement to annual leave or holidays from work is set out in legislation

Organisation of Working Time Act 1997 and in the employee’s contract of employment.

The basic annual paid leave entitlement is 4 weeks per annum. Pay in respect of annual

leave is paid in advance at the normal weekly rate.

Annual Leave must be approved by the Principal. The leave should be approved

before the employee books the holiday.

Holiday pay is earned against time worked. All employees, full-time, part-time,

temporary or casual earn holiday entitlements from the time work is commenced.

Holiday pay entitlements are calculated using one of the following criteria:

a) 4 working weeks in a leave year in which the employee works at least 1,365 hours

(unless it is a leave year in which he or she changes employment).

b) 1/3 of a working week per calendar month that the employee works at least 117

hours.

c) 8% of the hours an employee works in a leave year (but subject to a maximum of

4 working weeks).

Employers are obliged to keep records of holidays and public holidays for a period of 3

years.

An employee who has worked for 8 months or more is entitled to an unbroken period of

2 weeks' annual leave.

Part-time work: Generally, the annual leave for part-time workers is calculated using

the 8% of hours worked method. If an employee works full time for some months and

the rest of the year works part time, you should calculate the leave for the full-time and

the part-time periods of work separately.

Other Leave: Time spent on maternity leave, adoptive leave, parental leave, force

majeure leave and the first 13 weeks of carer's leave is treated as though you have been

in employment and this time can be used to accumulate annual leave entitlement.

Holiday Pay –Term Time

Employees employed for term time in school will be entitled to holidays calculated using

the 8% of hours worked method.

http://www.irishstatutebook.ie/1997/en/act/pub/0020/index.html


E.g. if an employee works for 30 hours a week for 42 weeks in a school year the holiday

entitlement would be 100 hours ( 30hrs x 42wks x 8%)

Public/Bank Holidays

There are nine public holidays as follows:

1. Christmas Day

2. St. Stephen's Day

3. The 1st of January

4. St. Patrick's Day

5. Easter Monday

6. The first Monday in May

7. The first Monday in June

8. The first Monday in August

9. The last Monday in October

Note: Good Friday is not a public holiday. While some schools and businesses close on

that day, you have no automatic entitlement to time off work on that day.

The entitlement to public holidays is set out in the Organisation of Working Time Act 1997.

Most employees are entitled to paid leave on public holidays. One exception is part-time

employees who have not worked for their employer at least 40 hours in total in the 5 weeks

before the public holiday.

Employees who qualify for public holiday benefit will be entitled to one of the following:

A paid day off on the public holiday

An additional day of annual leave

An additional day's pay

A paid day off within a month of the public holiday

The Organisation of Working Time Act provides that an employee may ask the employer at

least 21 days before a public holiday, which of the alternatives will apply. If the employer

fails to respond at least 14 days before the public holiday, the employee is entitled to take the

actual public holiday as a paid day off.

Part-time employees

If an employee has worked for the employer at least 40 hours in the 5 weeks before the public

holiday and the public holiday falls on a day they normally work they are entitled to a day's

pay for the public holiday. If employees are required to work that day they are entitled to an

additional day's pay.

If they do not normally work on that particular day they should receive one-fifth of the

weekly pay. Even if they may never be rostered to work on a public holiday they are entitled

to one-fifth of the weekly pay as compensation for the public holiday.

http://www.irishstatutebook.ie/1997/en/act/pub/0020/index.html


In all of the above situations the employer may choose to give paid time off instead of pay for

the public holiday.

Redundancy

A redundancy is when an employee’s job ceases to exist and the employee is not replaced.

Possible reasons for an employer seeking redundancy include rationalisation/ reorganisation;

not enough work available; the financial state of the school.

The JMB Employment/HR unit is available to give advice and assistance should a

redundancy situation arise.

Notice: An employee is entitled to a minimum of 2 weeks’ notice of redundancy. This notice

period increases depending on the period of service.

Period of service Notice required

Between 2-5 years 2 weeks



Over 15 years 8 weeks

*Your contract of employment may provide for a longer period of notice

Redundancy Payment: The statutory redundancy payment is a lump-sum payment based on

the pay of the employee. All eligible employees are entitled to:

Two weeks' pay for every year of service over the age of 16 and

One further week's pay

The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week

(€31,200 per year).

A Redundancy Calculator is provided by the Department of Enterprise, Trade and

Employment. This allows employers to calculate how much statutory redundancy the

employee is entitled to based on their circumstances.

PAY: Pay refers to your current normal weekly pay including average regular overtime and

benefits-in-kind, but before tax, USC and PRSI deductions, that is your gross pay.

TAX/PRSI/USC: The statutory redundancy payment is TAX, USC and PRSI -free. Only a

payment above and beyond the statutory minimum (known as an ex-gratia payment) is liable

to tax when it goes above a certain limit.

Details are available at www.revenue.ie/redundancy.

Holiday Pay: An employee is entitled to receive payment for annual leave which they have

earned, but have not taken.

Final Day: On the date of the termination of employment the employer should pay the

employee

http://www.deti.ie/employment/redundancy/calculator.htm


1. All wages and holiday pay due to the employee

2. The redundancy lump sum.

3. Give the employee their form P45

4. Complete the form RP50 and get the employee to sign it.(see note below)

5. Give a copy of the form RP50 to the employee.

Employee Advice: advise the person being made redundant that they should immediately

contact their local Social Welfare Office where they can apply for the two main

unemployment benefits – Jobseeker’s Benefit or Jobseeker’s Allowance. This is important, as

any delay in making a claim could result in a loss of payment.

RP50: We recommend that schools complete RP50 for each employee made redundant as

employers are obliged to retain proof of payment of the lump sum entitlement to the

employee and provide a copy of such documentation to the employee(s) concerned. There is

no requirement to submit RP50 application forms, or any other form, to the Department in

respect of redundancies where the employer is paying the statutory redundancy entitlement to

eligible employees, however, employers should ensure that they obtain/retain proof of

payment of the lump sum entitlement to the employee and provide a copy of such

documentation to the employee(s) concerned.

There is no statutory redundancy employer rebate where the date of dismissal due to

redundancy is on or after 1 January 2013.

http://www.welfare.ie/en/Pages/employerrebate.aspx

http://www.welfare.ie/en/Pages/employerrebate.aspx


Register of Employees

This Employer Notification outlines that -

a. for the purposes of the PAYE system, an employer has a statutory obligation to keep

and maintain a Register of Employees;

b. on being requested to do so by a Revenue officer and within the time specified by that

officer, an employer has a statutory obligation to produce that employer's Register of

Employees (or a certified copy of it) or an extract from it to any Revenue officer;

c. an employer who does not keep and maintain a Register of Employees is liable to a

penalty of EUR4,000 (and where that employer is a company, the secretary of that

company is liable to a separate penalty of EUR3,000);

d. where an employer fails to comply with a requirement of an authorised officer - in the

exercise of that officer's powers or duties under Section 903 Taxes Consolidation Act

1997 (Power of inspection: PAYE) - to produce any records which that officer

requires for the purposes of his or her enquiry, that employer shall be liable to a

penalty of EUR4,000.

NOTE: The obligation on an employer to keep and maintain, for PAYE purposes, a

Register of Employees is separate and distinct from an employer's obligation to register with

Revenue for the purposes of the PAYE system.

1. A REGISTER OF EMPLOYEES must include the following relevant details -

(a) the name, address and Personal Public Service Number (PPSN) of each employee;

(b) the date of commencement of employment of each employee; and

(c) where relevant, the date of cessation of employment of each employee.

In some instances, an employer may, for the purposes of payroll, human resources or

fulfilling a non-tax related statutory obligation, hold a record or register of all employees (and

former employees). Such a record or register will suffice as a Register of Employees for

PAYE purposes provided that it includes the relevant details outlined above.

NOTE: It is important that, immediately on cessation of employment, an employee is given a

Form P45 and the date of cessation of employment is entered into the Register of Employees.

2. PLACE OF RETENTION OF Register of Employees

An employer must keep and maintain the Register of Employees (or a copy of it) either at the

normal place of employment of each employee or at the main place of business of the

employer.


3. TEMPORARY, PART-TIME, CASUAL STAFF, ETC.

Although an employee may be employed on a temporary, part-time or casual basis, the

relevant details (see Paragraph 3 above) of such employee must be entered in the employer's

Register of Employees.

4. INCOMPLETE Register of Employees

An employer who keeps and maintains a register that does not include the relevant details

(see Paragraph 3 above) of ALL employees shall be liable to the relevant penalty for not

keeping and maintaining a Register of Employees.

5. PRODUCTION OF Register of Employees.

On being required to do so by a Revenue officer, an employer has a statutory obligation to

produce, within the period specified by that officer, that employer's Register of Employees

[or, as appropriate, a certified copy (including electronic copy) of it] or an extract from it to

any Revenue officer.

6. RECORDS HELD BY A TAX OR PAYROLL AGENT / RECORDS HELD IN

A PAYROLL SOFTWARE PACKAGE

Although an employer may -

(a) engage the services of a tax or payroll agent, and / or

(b) use a proprietary software payroll or human resources package,

the onus is on that employer to keep and maintain the Register of Employees (or a copy of it)

at the normal place of employment of each employee or at that employer's main place of

business.


Statutory Employment Records

In compliance with Employment Legislation, and in order to demonstrate that employees are

receiving their proper entitlements, an employer is obliged to maintain certain statutory

records. The list below sets out the main records required.

1. Employer registration number with the Revenue Commissioners

2. Full Name, Address and PPS Number for each employee (full-time and part-time)

3. Terms of Employment for each employee

4. Payroll details – i.e. Gross to Net, Rate per hour, Overtime, Deductions, Shift and

other Premiums and Allowances, Commissions and Bonuses, Service Charges, etc.

5. Copies of Payslips

6. Employees’ Job Classifications

7. Dates of commencement and, where relevant, termination of employment

8. Hours of Work for each employee (including starting and finishing times, meal breaks

and rest periods). These may be in the form of Form OWT1 or in a form substantially to

like effect.

9. Register of employees under 18 years of age

10. Whether board and/or lodgings are provided and relevant details

11. Holiday and Public Holiday entitlements received by each employee

12. Any documentation necessary to demonstrate compliance with employment rights

legislation

Additional records may be required to be held depending on the sector/business involved.

(Note – An Inspector from the National Employment Rights Authority (NERA) has the

power to seek full access to these records in the course of an inspection.)

Links to related web pages and Guides may be found at the bottom of the page

http://www.revenue.ie/en/index.html

http://www.workplacerelations.ie/en/Publications_Forms/Form_OWT1.doc


EMPLOYEE PERSONAL DETAILS

* Important Note: If the PPS number is unknown, you should ensure that the employee's date

of birth and address are entered.

Employee's Surname

Employee's First Name

Employee's Address

.

Employee's Date of birth

Department– Secretary, Caretaker, Cleaner,

Teacher, Canteen, Exam Aide, etc

Employee's PPS Number

Hourly Rate if applicable - If the employee is not

paid by the hour see below

Weekly/Monthly/Fortnightly Pay if applicable -

Employee's Bank Details

Name of Bank

Branch

Sort Code (6 digit)

IBAN Number

BIC Code

Attach P 45

Medical Card Holder

Employee signature _____________________________ Date _______________

Principal signature ______________________________ Date ________________


Revenue Tax credits

Tax is calculated as a percentage of your income. Your tax credits are deducted from this to

give the amount of tax that you have to pay. A tax credit has the effect of reducing your tax

by the amount of the credit.

This table sets out the main tax credits available in 2014 and 2015.

Tax credit 2014 2015

Single person €1,650 €1,650

Married person or civil partner €3,300 €3,300

PAYE credit €1,650 €1,650

Widowed person or surviving civil partner qualifying for Single Person Child Carer Credit €1,650 €1,650

Widowed person or surviving civil partner (without dependent children) €2,190 €2,190

Widowed Person or Surviving Civil Partner in year of bereavement €3,300 €3,300

One-parent family, widowed or surviving civil partner, deserted, separated or dissolved civil

partnership, divorced or single (with n/a n/a

Single Person Child Carer Credit €1,650 €1,650

Incapacitated Child Credit €3,300 €3,300

Blind Tax Credit

Single person

Married - one spouse or civil partner blind

Married - both spouses or civil partners blind

€1,650

€1,650

€3,300

€1,650

€1,650

€3,300

Widowed person or surviving civil partner with dependent child tax credit

Bereaved in 2014

Bereaved in 2013

Bereaved in 2012

Bereaved in 2011

Bereaved in 2010

Bereaved in 2009

n/a

€3,600

€3,150

€2,700

€2,250

€1,800

€3,600

€3,150

€2,700

€2,250

€1,800

n/a

Age tax credit

Single, widowed or a surviving civil partner

Married or in a civil partnership

€245

€490

€245

€490

Dependent relative tax credit €70 €70

Home carer tax credit €810 €810


Social Welfare Payments and Taxation

The following social welfare payments are liable for taxation. No tax is deducted at source by

the Department of Social Protection. All enquiries about your tax liability should be

addressed to your local tax office

USC All Department of Social Protection payments, including Maternity Benefit and State pensions, are exempt from the Universal Social Charge

Social Welfare Payments which are Liable for Tax

Social Insurance Payments

Illness Benefit

Jobseeker's Benefit

Carer's Benefit

State Pension (Contributory)

State Pension (Transition)

Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension

Guardian's (Contributory) Allowance

Invalidity Pension

Partial Capacity Benefit

Maternity Benefit

Adoptive Benefit

Health and Safety Benefit

Employment Injury Benefits

Injury Benefit

Disablement Pension

Death Benefit

Incapacity Supplement

Constant Attendance Allowance

Social Assistance Payments

State Pension (Non-Contributory)

One Parent Family Payment

Widow's Widower's or Surviving Civil Partner's (Non-Contributory) Pension

Guardian's (Non-Contributory) Pension

Blind Person's Pension

Carer's Allowance

Other Payments

Rural Social Scheme (RSS)

http://www.revenue.ie/en/contact/index.html

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/maternity_benefit.html



Tús - Community Work Placement Initiative

Community Services Programme

Job Initiative

Community Employment (CE)

Insolvency Payments (Note: Tax and PRSI is deducted by either the relevant

liquidator/receiver/administrator or by this Department, before the payment is made

to each employee. See here for more details)

Social Welfare Payments which are not Liable for Tax

Social Insurance Payments

Bereavement Grant

Employment Injury Benefits

Disablement Gratuity

Social Assistance Payments

Jobseeker's Allowance

Farm Assist

Pre-Retirement Allowance

Disability Allowance

Family Income Supplement

Supplementary Welfare Allowance

Child Benefit

Respite Care Grant

Other Payments

Household Benefits

Fuel Allowance

Statutory Redundancy Payments

http://www.welfare.ie/en/Pages/Employee-Guide-to-the-Insolvency-Payments-Scheme.aspx