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Truway Accounting For IT Contractors

Wed, 27 Jul 2022 14:54:30 GMT

In today's ever-increasing pandemic economy, a qualified employees is critical for any sector. In Ireland, there is a high demand for experienced IT contractors.

IT contractors seek job roles involving most workings of:

● AWS CLOUD PROJECTS

● eCOMMERCE Industry

● CYBERSECURITY

● DATA AND ANALYTICS

● WEB DEVELOPMENT

● CRM

● IMPLEMENTING TEST SCENARIOS, SUPPORT AND OPTIMISATION for

various IT solutions across industries.

IT contracting provides valuable possibilities for professionals in software development, app development, Microservices engineers, project managers, and customer support engineers. Setting up your IT contracts to work independently has become critical in the modern era. IT contracting has shown to produce the best results. When compared to per month pay, there is a 20% gain. It has become highly popular in Ireland as the need of the hour choose in contracting option. If you want to benefit from Contracting, Truway Accounting can help you get started.

IT CONTRACTING BENEFITS FOR CANDIDATES:

Increased Money gains:

Contracting can result in a 20 percent rise in your per month wage. Accounting and contracting experts revealed that the average IT Contracting day rate in Ireland is currently €421.

Lowered Expense:

you will have the ability to claim back expenses. On average contractors claim around €250 a month. Types of expenses :

Computer Equipment
Educational Courses
Phone and Internet
Travel
Company Car
Home Office
Relocation

Increased Flexibility and Experience:

IT Contractors are increasing significantly in Ireland due to the higher pay and flexible work solutions. Thereby creating an ever increasing need to opt in for accounting services for IT Contractors.

More Freedom and Control with Better Work Life Balance

Truway accounting hold expertise in helping IT contractors get the best gains by opting in from any contracting solutions

Umbrella Company Employee

In this type of contracting solution Truway Accounting can help IT Contractors to set up as an employee of an umbrella company for tax and payroll purposes. This option is best for short term contracts and people who want to retain Social Welfare benefits. Best suited for daily rates up to €200 and employers PRSI is paid

Umbrella Company Director

In this contracting solution Truway accounting will set you up as the Director of an umbrella company for tax and payroll. This option is for any length of contract and can help the contractor to maximise retention (how much of their daily rate they keep versus pay in tax). This fits someone who is not concerned about retaining Social Welfare benefits. Best suited for daily rates from €180-€400 and employers PRSI is not applicable. This contracting solution is recommended if you are new to contracting

Private Limited Company

Under this contracting solution Truway accounting helps you set up your own company to contract under. Best suited for 12 month contracts on daily rates of €400+ . This option can take longer to set up than the umbrella options but allows you more control around tax planning and ability to claim expenses

IT contractors have built up a bank of knowledge, expertise and experience that is highly attractive to companies. Because of this, these contractors typically command high rates of pay. A report in the Irish market showed, IT contractors earned an average daily rate of €529, their median age is 48 and their contracts last, on average, 14 months. If you’re an IT expert looking to dive in for maximum pay back, it's the best time to get started. Book your consultation with Truway Accounting for your successful journey today.

Ukraine Crisis - Donation Guide for Self-Employed & Limited Companies

Sun, 10 Apr 2022 14:44:01 GMT

Ukraine's humanitarian situation is fast deteriorating, with millions of people already displaced and in desperate need of assistance. Irish charities, community groups, and non-governmental organisations (NGOs) are working around the clock in Ireland and overseas to aid those affected by the crisis.

Making a tax-deductible donation to an Irish registered charity is the most efficient way to save lives.

The Charitable Donation Scheme allows small businesses and limited organisations to receive tax credit on qualified donation made to registered charities.

If a self employed individual donates €250 or more in a calendar year, the registered organisation may claim a tax refund on that donation.

If a corporation (Limited Company) donates €250 or more in a calendar year, it can claim a tax deduction as if the donation were a business expense.

This program has a four-year time limit for filing a claim.

We have made a donation to the Christian Aid Ukraine Crisis Appeal to show our support with the people of Ukraine.

Donations to Christian Aid will go towards providing food, medication, shelter, and water to those in need.

If you want to do the same, keep in mind that you can do so in a tax-efficient manner. Do you require assistance? Please contact our qualified professionals.

Revenue eBrief No. 037/22

Mon, 14 Mar 2022 12:56:01 GMT

Tax returns for Employment - Share Schemes

Employers operating share schemes, as well as trustees of some approved share schemes, are reminded that they must satisfy their reporting obligations by March 31, 2022 , for the year 2021.

You must report this income to the Revenue Commissioners , regardless of the amount or kind of tax you pay.

We assist people all around Ireland with completing their income tax returns and lowering their tax burden.

The return to be filed is dependent on the type of share scheme, which is summarised below for convenience.

Paying Tax on Company Shares

Employees may find the tax regulations governing income from share schemes, stock options, and dividends to be complex and intimidating.

In certain circumstances, the employee is responsible for tax liabilities, while in others, the employer is responsible for tax liabilities. Whether or not you must pay tax on this income is determined by the sort of share scheme used by your employer.

Our professional accountants have compiled some information to assist you in understanding some of the more typical employment-related stock plans and how they effect your tax liability.

Share Options (Unapproved Scheme)

A Share Option is the right to purchase business shares at a certain price. When the employee exercises the share option, any tax due must be paid to the Revenue Commissioners within 30 days of exercising the option, and the employee must submit Form RTSO1 with payment.

If you do not sell the shares right away, you may be subject to Capital Gains Tax (CGT) in addition to the Relevant Tax on Share Option (RTSO).

Restricted Stock Units (RSUs)

Your employer gives you a Restricted Stock Unit (RSU), which is a share of the company. You will receive shares in the firm or the cash equivalent upon completion of the maturation term, which is the agreed-upon period during which you must be engaged in the company in order to hold these shares. These types of shares are subject to income tax, the Universal Social Charge (USC), and Pay Related Social Insurance (PRSI), which are all processed through your employer's PAYE system.

If you decide to sell your RSU, CGT may be held accountable. However, it is the employee's responsibility to notify the Revenue Commissioners and pay any CGT owed.

Save As You Earn (SAYE) Schemes

This approved savings-related share option scheme operates by giving employees the chance to acquire shares at a reduced price using money they've saved.

Employees who exercise their option to acquire shares at the end of the savings period will be exempt from paying income tax on any gains made on these shares. You must, however, pay USC and PRSI. If you decide to sell the shares you got through the SAYE plan, you may be subject to CGT.

Approved Profit-Sharing Schemes (APSS)

Your company can give you tax-free shares up to a maximum of €12,700 each year under this scheme. The shares must be held in a trust for the period of retention set up by your employer in order for this income to be tax-free.

Although this arrangement exempts you from paying income tax, you must pay USC and PRSI on the value of the shares.

Dividends Explained

The term "dividend" refers to the portion of a company's profits distributed to shareholders.

Dividend Withholding Tax (DWT) is paid at the source, meaning before the dividend is issued to you as a shareholder. DWT is currently charged at 20%. Any profits you earn, however, must be reported to the Revenue Commissioners on your tax return.

Still have more questions about paying tax on employment-related shares?

Outsourced Payroll Ireland Services

Fri, 18 Feb 2022 14:05:58 GMT

Payroll services of the highest quality, handled by trained specialists

Payroll compliance is complex, time consuming and costly when you get it wrong.

It's critical to have a solid payroll system in place. Our payroll service is one of a kind. We are a part of the tax business, and our tax professionals are skilled at identifying concerns and recommending appropriate solutions. This provides the highest level of payroll service as well as compliance to tax regulations.

Why should you outsource your payroll Ireland to Truway Accounting?

Increased efficiency by having your valued employees focus on other core areas of the business, while we handle your payroll
Enhanced confidentiality around sensitive employee and executive compensation
Employees have increased confidence in the accuracy of the payroll
Ensure deadlines are met, avoiding late penalties
Ensure compliance with current tax legislation, by having qualified tax professionals with a wealth of experience in employment tax, take care of your payroll
Access to expert Irish employment tax and legal knowledge (including a global tax and legal network)

Why choose Truway Accounting in Ireland for payroll services?

We are fully integrated with the Irish accountant practice. Our payroll service is managed by our qualified professionals to ensure tax issues are identified and dealt with appropriately
We go beyond the immediate compliance tasks by providing oversight and insight
Trained qualified and experienced payroll and tax professionals
We are leaders in outsourced payroll Ireland
Significant experience in managing senior executives, directors and other payrolls across a wide range of industry sectors
We are proud to work on some of the most high profile executive payrolls for a number of companies throughout Ireland
A review is carried out on all payroll runs to ensure accuracy and compliance with tax rules
Customised payroll management reports
Continuous review and risk assessment of the payroll process and procedures
Excellent account management is an integral part of how we conduct all our ongoing payroll engagements

Get in touch

For further information on our Outsourced Payroll Services, please contact our team below - we'd be delighted to hear from you.

Outsourced Payroll Best for PAYE Compliance

Wed, 02 Feb 2022 11:44:49 GMT

Payroll is a complex and time-consuming operation

At the best of times, payroll is a complicated and time-consuming process. Furthermore, with the new PAYE Modernisation system, it's clear to see why many companies are concerned about the shift, which began on January 1, 2019. In fact, now is the best time to think about Payroll Outsourcing to ensure that your business is in compliance with the new PAYE system. PAYE Modernisation is a "real-time" payroll reporting (RTR) system that represents the biggest shift in payroll processing since the 1960s.

Real Time Reporting:

Employers must send their employees' PAYE tax and deductions to Irish Revenue in real time from January 1st, 2019. (RTR). Real-time reporting effectively means that reports must be submitted before employees are paid each pay period. Employers will also have to record information of any employees who leave their jobs when they submit their payroll to Revenue under the new system. Employees now have real-time access to the payroll data that their company submits to Revenue. Similarly, Revenue has complete data on each employee during each payroll cycle.

PAYE Online

The entire payroll process and connection with Revenue is now conducted online, with all payrolls being automatically reported to Revenue, who will have real-time information on each employee's earnings from all jobs. As a result, the rationale for companies calculating and reporting their employees' pay and deductions as they are paid is that it will make it easier to deduct and pay the proper amounts of taxes, such as income tax, USC, and PRSI, at the appropriate times.

The impact of new PAYE System on Employers

PAYE Modernisation will involve an “Employer Submission” to Revenue each time an employee is paid. The Employer Submission will contain information similar to that which currently appears on an employer’s P35 return.
P30s, P35s and P45s have been abolished with employers submitting this information to Revenue electronically in the aforementioned Employer Submission.
Generation of P60s has also been abolished.

What impact has the new system had on the present PAYE system?

Employers must deduct Income Tax, Pay Related Social Insurance (PRSI), Universal Social Charge (USC), and Local Property Tax (LPT) from an employee's gross pay under the existing PAYE tax system in Ireland. Each employer must supply a list of all their employees via ROS prior to the start of the new system, as well as guarantee that every employee is on the current P2C list. In a nutshell, the PAYE Modernisation system has altered the way employers handle PAYE information and send it to Revenue in order to improve firms' PAYE reporting requirements to Revenue.

Paying your employees' tax to Revenue

Sun, 23 Jan 2022 21:27:44 GMT

All taxes deducted from your employees' wages must be paid to Revenue.

Employers must record payroll details every time an employee is paid starting January 1, 2019. These details must be reported on or before the due date.

You must complete payroll submissions if you made payments to your employees during the month. You must submit a payroll entry each week if you pay your employees weekly.

By the 5th of the next month, revenue may have generated a statement. Based on your payroll submissions, the statement will display your total responsibility for that month.

You have until the 14th of the next month to accept the statement, after which it will become a monthly statutory return. If you refuse to accept the statement, Revenue will consider it to be the monthly mandatory return for that day.

Rule for calculating tax

This is how your employee's tax is calculated if you pay them weekly:

apply the standard rate of tax on their taxable pay up to their weekly cut-off point
apply the higher rate of tax on the balance of taxable pay above their weekly cut-off point
add the two amounts above
subtract the amount of their weekly tax credits.

If you pay your employees fortnightly or monthly, the same principles apply.

What next?

Should you wish to pay your employees’ income tax and USC liabilities contact our qualified professionals advisor today.

New financial supports for businesses affected by the new Covid-19 restrictions.

Tue, 21 Dec 2021 14:20:09 GMT

Changes introduced to EWSS , CRSS and Tax Debt Warehousing

The government unveiled an extended scheme of support for enterprises that have been hurt the hardest by the reinstatement of trade restrictions due to the widespread pandemic.

EWSS (Employment Wage Subsidy Scheme)

The EWSS will remain in effect for the great majority of enterprises affected by the recently amended restrictions, with the higher rates published on December 9 remaining in effect.

Furthermore, the government agreed today that the EWSS will reopen for some enterprises that would otherwise be ineligible, and that these businesses will be maintained until the scheme expires on April 30, 2022 .

The new arrangements for EWSS will provide employers who have previously availed of EWSS but who are no longer eligible, with the opportunity to re-qualify for the scheme where they meet specific conditions.

Employers that qualify for re-entry to the scheme will receive support on a prospective basis from 1 January 2022 onwards, and they can remain in the scheme until its expiry date (30 April 2022).

CRSS ( Covid Restrictions Support Scheme)

The COVID-19 Restrictions Support Scheme (CRSS) was originally designed to support those businesses who had to close their business premises completely or severely restrict access to their premises as a result of Government restrictions.

The maximum sales a business could earn was 25% of their pre pandemic revenues to qualify for the subsidy.

Those rules have now been relaxed whereby businesses can qualify for the scheme even if they keep their doors open to customers and earn up to 40% of pre pandemic sales.

This is aimed at those in the hospitality sector who remain open but have to shut their doors at 8pm.

The turnover reduction criteria will be increased from no more that 25% of 2019 turnover to no more that 40% of 2019 turnover, and new businesses established between 13 October 2020 and 26 July 2021 will now be eligible to apply for the scheme.

Currently any business established after 12 October 2020 is not eligible for CRSS. The government has now agreed to allow new businesses established between 13 October 2020 and 26 July 2021 to be eligible to apply for the scheme.

Tax Debt Warehousing

The government also agreed to extend the tax debt warehousing scheme to allow the period where liabilities arising can be “warehoused” to the end of Q1 2022 for taxpayers eligible for the COVID-19 support schemes ; this means that interest free period for those taxpayers will now be 1 April 2022 to 31 March 2023.

Payroll Management: Guide for small businesses

support@digitalwebsite.ie (Vandita Agarwal) — Thu, 09 Dec 2021 18:19:52 GMT

Are you a small business owner looking to manage your companies Payroll?

It is really important that you manage your payrolls mindfully from the beginning. Employees expect to be paid on time and for the correct amount without paying inapplicable taxes. Furthermore, if you have additional payments to account for, such as bonuses and holiday pay, your payroll chores get more complicated.

However, if you do your payroll properly, you'll keep your staff focused and motivated which leads to your business growth.

Tasks to complete, prior to payday

Register your Business and Employees with the Revenue

The eRegistration facility allows you to manage your registrations online. Registering online is cheaper and more efficient than submitting paper applications.

To use eRegistration you must be registered for either Revenue Online Service (ROS) or myAccount .

Registering through ROS

Log into ROS and select ‘Manage Tax Registrations’ on the ‘My Services’ page.

Registering through myAccount

Log into myAccount and select ‘Tax Registrations’ on the ‘Manage My Record’ card.

Keep track of your employees' remuneration, including their salary, wages, and any additional compensation.
Calculate and record the necessary deductions from their pay amount
Produce and deliver each employee's payslips, filing separately their deductions.

Invest in payroll software

Payroll software will take care of everything for you, including tax computations, issuing payslips for employees, staying up to date on legislation, and supplying data for end-of-year tax returns.

Be Mindful while setting up the Payroll Details

Take the time to enter all of your employees' information into your payroll system correctly, including start dates, current residences, and dates of birth. Casual errors will only cause issues in the future.

Keep an eye on changed Payroll Legislations

Changes in regulation may have an impact on how you handle your payroll, so it's important to stay on top of significant new regulations. Benefits and tax laws change regularly, and while you don't need to know every detail, it's important to be educated and seek advice if you're unsure.

Have a financial back-up Plan

Setting up a good credit control system, sending out invoices promptly and always chasing late payments firmly as soon as they become due will help avoid cash flow disruption. If one of your customers doesn’t pay on time and you can’t pay your staff, your business could be in trouble. Always try to keep some surplus for uncertain times.

And if all else fails… payroll outsourcing

If managing payroll yourself is proving a real headache, consider outsourcing to a payroll company. our team of qualified accountants can save you the hassle of managing everything yourself and staying on top of regulations and paperwork.

Self-assessed tax return: Guide for Self Employed & Business Owners

Wed, 17 Nov 2021 23:52:39 GMT

It's almost time to file your self-assessment tax return. If you're self-employed, it's that time of year again. The official deadline is 31 October 2021 – but it can be extended, if you use Revenue’s Pay and File system to both pay and file through ROS (Revenue Online Service).

To help you along the way when it comes to filing your tax return, read this guide for tips on registering for self-assessment and submitting your return.

Let's get Started

How to register for self-assessment?

How to complete a self-assessment tax return

You can claim certain business expenses against tax, such as rent, lighting and heating, accountancy fees, and interest paid on business loans.

Once you’re registered, you fill out a Form 11 online . Your tax liability will comprise two elements: the balance of income tax payable from 2020 and a preliminary tax liability for 2021.

The preliminary tax should usually be 90% of the current year liability. Once you know your total liability, you make your payment via ROS.

Though you don’t have to submit any supporting documents such as invoices, bank statement and receipts, you need to keep them. Because if Revenue ever audits you, you’ll be expected to provide those documents.

Tax rates

Tax rates are the same as for PAYE workers.

If you’re a single person, the first €35,300 is taxed at 20% and the balance is taxed at 40%. If you’re married or in a civil partnership with one income, the first €44,300 is taxed at 20% and the balance at 40%.

If you’re married or in a civil partnership with two incomes and doing a joint assessment, it’s a little more complicated but in principle, a married couple pays less tax than two single people, but not significantly less.

You also have to pay USC (Universal Social Charge) and PRSI (Pay Related Social Insurance) on top of your tax liability and these are both charged on your gross income.

Some good news for the self-employed is that since 2016, self-employed workers are entitled to an earned income tax credit. This was introduced to in some way level the playing field with PAYE workers, who receive a PAYE tax credit of €1,650.

The earned income tax credit is €1,500 for this year’s tax returns.

Once your tax has been calculated, ROS subtracts your tax credit to reduce the amount you actually have to pay.

Penalty for late filing

The tax due is increased by a financial penalty for late filing. If you submit your tax return within two months of the deadline, your surcharged will be 5%.

If it’s filed more than two months after the submission deadline, the surcharge will be 10% and, in addition, interest will be charged on the tax due at a rate of approximately 10% per annum.

Your deadline day

On deadline day, ROS could slow down because many of the other 700,000 self-assessed taxpayers are trying to log in.

So give yourself the time to make sure your numbers are correct, you have the required information to hand and you file your self-assessment tax return in plenty of time.

Payroll Summary - Budget 2022

Thu, 14 Oct 2021 18:28:47 GMT

Tax Credits

Personal, Employee and Earned Income credit each increased by €50 - from €1650 - €1700

Standard Rate Tax Bands

The standard rate tax bands (currently 20%) will increase by €1500

Minimum Wage

Minimum Wage increase from €10.20 to €10.50 per hour.

Universal Social Charge (USC)

The second USC band has been increased from €20,687 to €21,295

Employee Wage Subsidy Scheme (EWSS)

The EWSS has been extended to 30 April 2022 in a graduated format.

Working From Home

Employees can claim a 30% income tax deduction for vouched expenses for electricity, heat and broadband.

BIK - Electric Vehicles

BIK exemption for battery electric vehicles will be extended to 2025 with a tapering effect on vehicle value.

Employers' PRSI

The weekly income threshold for a higher rate of employer's PRSI will increase from €398 to €410

Need help with your accounting services?

Revenue eBrief No. 133/21

Tue, 06 Jul 2021 15:57:14 GMT

Income tax return form 2020 - ROS Form 11

The 2020 ROS Form 11 has been available since 1 January 2021 in both the online and offline ROS facilities. A new Tax and Duty Manual Part 38-01-04E highlights updates and changes to the 2020 form.

The 2020 Form 11 reflects the changes introduced in the Finance Act 2020, including updated credits and rates, and other reporting requirements. The changes and additional questions and validations are referenced in this manual.

Changes have been introduced to the Extracts From Accounts section to minimise unnecessary contact with compliant taxpayers in relation around incomplete or incorrect data. These changes include mandatory fields and the addition of two 'calculate' buttons.

Revenue eBrief No. 097/21 Payment of Temporary Wage Subsidy Scheme (TWSS) liabilities by employers for self-assessed employees and proprietary directors

Mon, 10 May 2021 10:33:01 GMT

Payment of Temporary Wage Subsidy Scheme (TWSS) liabilities by employers for self-assessed employees and proprietary directors

Revenue has previously confirmed that it is facilitating employers who wish to pay the 2020 income tax and Universal Social Charge (USC) liabilities of their employees arising from the Temporary Wages Subsidy Scheme (TWSS).

Should an employer wish to pay these liabilities on behalf of their employees, on an exceptional, once-off basis and subject to certain conditions, Revenue will not apply the Benefit-in-Kind (BIK) rules that would usually apply where employers make payments of this nature on behalf of their employees.

The purpose of this eBrief is to advise that the relevant pages of the Revenue website have been updated to provide the following clarifications in relation to the concessional BIK treatment and TWSS debts:

To facilitate employers who wish to make good their employees' liabilities and ensure they have the fullest information available following the TWSS Reconciliation process, the concessional treatment is extended to run until end of September 2021.
The concession also applies where an employer pays the tax and USC liabilities of an employee who is a self-assessed taxpayer or, in joint assessed cases, if the employee's spouse is self-assessed.
The concession also applies where an employer pays the tax and USC liabilities of a proprietary director(s) in the company, provided that the employer pays the TWSS related liabilities of all employees in the company.

Further information regarding offsets of direct temporary wage subsidy payments is also provided.

Further details on the TWSS scheme as it applies to employees are available on the Revenue website .