COVID-19 & Payroll: What you need to know 14th April 2020 COVID-19 & Payroll: Welcome What Employers Need To Know to today’s webinar Paul Byrne Rachel Hynes Managing Director Marketing Executive - BrightPay Laura Murphy HR Manager & Employment Law Expert Karen Bennett Head of Sales & Marketing- BrightPay Audrey Mooney Customer Support Manager 1
COVID-19 & Payroll: What you need to know 14th April 2020 COVID-19 & Payroll: Questions Recording Email What Employers Need To Know Handouts Resources Keep up to date with Government and public health advice Employer & Employee Rights COVID-19 & Engage all employees to use basic but effective ways to help prevent Employer Rights the spread of COVID-19 People’s health and well-being should be at the heart of every employer’s response to COVID-19. Be aware of what happens if employees do have COVID-19 symptoms 2
COVID-19 & Payroll: What you need to know 14th April 2020 COVID-19 Income Support Scheme: Employees with COVID-19 symptoms: Should not go to work Temporary Wage Subsidy May be entitled to sick pay COVID-19 & COVID-19 & Pandemic Unemployment Payment Income support - Illness Benefit Employer Rights Employee Rights Increased Illness Benefit Illness Benefit - € 350 per week Short term cash flow support: Maximum of 2 weeks if self-isolating Business Continuity Voucher Maximum of 10 weeks if diagnosed Additional Resource Employees should work from home where possible Putting Staff on Layoff COVID-19 & Employment rights during COVID-19 Employee Rights As a result of the recent business closures, Employee annual leave entitlements many employees have been laid-off. More information on these throughout the webinar Additional Resource 3
COVID-19 & Payroll: What you need to know 14th April 2020 Layoff - a temporary measure - Redundancy - when the employee the individual is still an employee loses their job permanently due to a but not receiving any remuneration business closure / reduction in work Layoff or Layoff or Typically, an employee may claim Normally the employee will return to Redundancy? Redundancy? statutory redundancy where a layoff their previous role on the same terms situation lasts for: and conditions 4 weeks or more An employee’s length of service is not impacted by the layoff 6 weeks in the last 13 weeks Legislation on claiming redundancy Employers should give employees has been changed during COVID-19 notice in writing that they will be put on layoff COVID-19 & Putting staff Employees who have been laid off during the emergency period are Best practice is for employees to Redundancy on layoff have a layoff clause in their contract not able to claim redundancy Emergency Period: Consider a temporary layoff clause 13 March 2020 to 31 May 2020 or letter getting confirmation from the employee to the layoff Additional Resource 4
COVID-19 & Payroll: What you need to know 14th April 2020 Employees on layoff will accrue Working hours reduced to 3 days or public holidays but not annual leave less – Short time Work Support Layoffs & COVID-19 & Accrued annual leave remains intact Payment is made in respect of your during layoff– employers should not regular salary for the days you are no Annual Leave Short Time Work pay employees in lieu longer working Try to be flexible in terms of allowing Employers working short-time an employee to carry over leave continue to accrue annual leave Available to employees and COVID-19 Pandemic employers who have lost their job on COVID-19 or after 13 th March due to the Unemployment Payment Pandemic COVID-19 pandemic Unemployment Payment Available to employees and the self-employed who have Paid at a flat rate of € 350 per week lost their job due to the COVID-19 pandemic. for the duration of the pandemic 5
COVID-19 & Payroll: What you need to know 14th April 2020 Aged 18 – 66 and lost your You cannot claim if you are employment due to COVID-19 continuing to get income from your employment COVID-19 COVID-19 Students, non-EEA nationals, Pandemic Pandemic part-time workers, casual workers You cannot claim if you Unemployment Unemployment voluntarily left your employment (except to look after children) Working casually and became Payment Payment fully unemployed If diagnosed or self-isolating, apply for Illness Benefit: Voluntary unpaid leave due to school / childcare closure Increased to € 350 Must be experiencing significant negative economic disruption Temporary COVID-19 due to COVID-19 Temporary Wage Subsidy Scheme COVID-19 Must be able to demonstrate a minimum 25% decline in turnover Wage Subsidy Scheme Available to employers who may wish to receive financial support Must be unable to pay normal so that they can continue paying their employees. wages and normal outgoings fully Must retain employees on the payroll 6
COVID-19 & Payroll: What you need to know 14th April 2020 Operating from 26th March 2020 Replaces the previous COVID-19 and expected to last for 12 weeks Employer Refund Scheme Temporary Temporary COVID-19 Restricted to employees who were COVID-19 Do not need to re-register if you on the employer’s payroll as at have already applied for the Wage Subsidy Wage Subsidy 29 February 2020 Employer Refund Scheme Scheme Scheme A payroll submission must have been If you wish to register, you can do made to Revenue from 1 February so through myEnquiries 2020 to 15 March 2020 The payment is capped at: Employers can pay 70% of the € 410 per week where the average Wage Subsidy Wage Subsidy employee’s average weekly net net weekly pay is less than or pay as a non-taxable payment Scheme Scheme equal to € 586 € 350 where the average net Employee Employee Employer will receive a refund from weekly pay is greater than € 586 Payments Payments Revenue within 2 working days after and less than or equal to € 960 receipt of the PSR Greater than € 960 - excluded from the subsidy scheme 7
COVID-19 & Payroll: What you need to know 14th April 2020 Employer top up payments cannot Period for calculating an employees be greater than the employees average weekly earnings: average net weekly pay Wage Subsidy January & February 2020 Wage Subsidy Scheme Scheme The subsidy will be tapered where the payment is more than the BrightPay – calculations are automated in the software permitted amount Employee Top Up Payments Payments Top up payments are taxable and Thesaurus – software includes USC-able an average pay calculator Processed under PRSI Class J9 Transitional Phase - 26th March to 20th April The wage subsidy may result in a tax/USC refund to the employee Employers must work out the payment that can be made Wage Subsidy Temporary Tax/USC refunds can be re-paid by Scheme Revenue will refund € 410 per COVID-19 the employer, and the employer will week per employee & perform a be reimbursed by Revenue Wage Subsidy reconciliation later for overpayments Phases of the Scheme scheme Operational Phase - From 21st April Duplicate support cannot be claimed for an employee from DEASP Revenue will inform employer i.e. Pandemic Unemployment how much they can pay Payment and Wage Subsidy Scheme 8
COVID-19 & Payroll: What you need to know 14th April 2020 BrightPay & Thesaurus can be installed on up to 10 different PCs How BrightPay & Thesaurus can Remote Working Payroll files can be accessed remotely facilitate remote working through cloud environments such as with BrightPay Dropbox or Google Drive & Thesaurus Although BrightPay & Thesaurus are a desktop solutions, they are Allows you to continue to process very flexible and can facilitate working from home. the payroll as normal Additional Resource Automatic cloud backup – access payroll info anywhere, anytime How Connect’s Remotely manage employee’s leave, online portals can help How Connect upload employee documents and can help send communications to employees Connect is proving to be hugely beneficial and enables Connect enables full business full business continuity with secure communications. continuity with secure employee communications 9
COVID-19 & Payroll: What you need to know 14th April 2020 Additional Resources Upload documents and resources to Business Continuity Voucher: https://www.localenterprise.ie/Portal/response/Business-Continuity-Voucher/Business- distribute to employees Continuity-Voucher.html Employment Rights: Distribute mission critical documents https://www.gov.ie/en/publication/dfeb8f-list-of-essential-service-providers-under-new-public- How Connect employee entitlements and updated health-guidelin/ can help contracts and policies Sample Employee Layoff Letter: https://www.thesaurus.ie/Template_Layoff_Letter.docx BrightPay’s COVID-19 Resources Hub: Notify employees of important https://www.brightpay.ie/pages/covid-19-resources announcements which can be viewed Working Remotely with BrightPay: on the employee’s smartphone app https://www.brightpay.ie/guides/BrightPay%20IE%20Covid-19.pdf Working Remotely with Thesaurus Payroll Manager: https://www.brightpay.ie/guides/Thesaurus%20Covid-19.pdf Questions & Answers Paul Byrne Laura Murphy Audrey Mooney Managing Director HR Manager & Customer Support at BrightPay Employment Law Expert Manager 10
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