AUTO ENROLMENT PENSION: How will the new Retirement Savings Scheme affect payroll?

Feedback from potential clients can provide valuable information for improving your products and services as well as highlighting opportunities to boost your revenue. Yet many businesses fail to manage their pipeline effectively and miss out on these opportunities as a result. Your sales pipeline is an important source of information for planning and budgeting. So, when working out your budgets and forecasts for the new year, it is important to make time to review your pipeline and see if you can identify ways to improve it. Key questions to ask include: What do you expect to sell next year? To whom? When? At what price? What volume? You also need to look at your input costs. To what extent will these be affected by inflation? Do you have sufficient people/resources to deliver your products/services or will you need find additional capacity? If so, how will you fund this? Impact of uncertainty on your sales pipeline Uncertainty is a huge factor at the moment because of the upheaval business experienced over the last 18 months. Have any of your prospects disappeared due to the impact of the Covid-19 pandemic, Brexit, or other external factors? Have any new prospects emerged? Are you still targeting the right customers? Do you have any new competitors? These are all questions to think about when you are working on this year’s budget and plans. Realistic forecasts It’s important to be realistic when forecasting. Your forecast should be based on the sales that you are confident you can secure in a given time period. Remember to assign responsibilities, monitor progress, and keep a keen focus on controlling your input costs. Accounts and payroll information While your sales pipeline is an important source of information for planning and budgeting, accurate bookkeeping and payroll information is also crucial. It’s important to ensure that there is a good flow of communication between your bookkeeper and accountant. This is because while your accountant is usually the one person who really understands your business, they rely to a great extent on the information you provide to them. So, if this information is incomplete, inaccurate or out of date, it will affect your accountant’s ability to help you. If you need support or advice on how to improve your bookkeeping and payroll processes, contact GroForth for assistance. Finally, remember neglecting your pipeline is a missed opportunity. So the lesson is, stop ignoring your pipeline!

If you intend to change your payroll service provider, there are some practical steps that will help you achieve a smooth transition, says Michelle Collins The end of the year/beginning of a new year is probably the best time to change your payroll provider. But before deciding to make a change, it’s important to establish if your existing supplier knows that they are not meeting your requirements. Have your spoken to your existing payroll provider about the problems you are experiencing? If your existing payroll company has been providing support for a period of time, it’s likely that they have a reasonably good understanding of your business. So, if they are not delivering the services that you require, it could be that they don’t realise their offering doesn’t match your expectations. It is worth having a conversation with them to find out if they can up their game. However, if they don’t have the skills or capacity that you require then you probably need to switch to another company. Timing the switch correctly Usually, the end of the year is the best time to make the change as the initial set up will be less time consuming for the new provider. Getting the timing right is very important. (See our previous blog on choosing the right time to change your payroll provider). Checklist for switching your payroll provider Once you make up your mind to switch, there are a number of practical steps to take in order to achieve a smooth transition. Here is a checklist of seven key points to cover: Check the contract with your existing provider. What is the notice period? Are there any exit fees or penalties? Are there any other conditions you need to comply with? Research potential providers. Check that they are properly qualified to deliver the services that you require. Questions to ask include: Can they provide all the services that you need? Do they have adequate staffing and resources to cope during busy periods or when a staff member is absent or ill? What payroll software do they use? Is it compatible with your software and systems? Do they have adequate data security measures in place? Will they provide a dedicated contact for your business? How will they cope if your business requirements increase or change in the future? (This can be very important if your business is growing and your payroll is likely to expand). How will they liaise with you and your team? Will they liaise with Revenue on your behalf? Make a list of any software or apps that you use which integrate with your payroll process. You may need to allow time to make changes to these in order to keep things running smoothly. Once you have a shortlist of potential future providers, check how their services compare with your existing provider. This will help you to confirm that their offering is a better fit for your business requirements. When you select your new provider, you will need to find out what information they require from your existing provider. Collect all relevant information before switching as this will help avoid problems down the line. Choose the right time to notify your current provider that you are switching. When everything is in place, you then need to notify your employees so that they know that they will be receiving email and/or other communication from the new provider. Your employees may also require training on the new system depending on how it interacts with your existing systems for things like recording annual leave, overtime, commissions, sick absences, etc. Payroll problems can be very time consuming when systems do not run smoothly so it is worth taking the time to choose the best possible provider. Changing to a new payroll company is a good opportunity to resolve existing problems and get a service that fully meets your needs. For information on the payroll supports that GroForth provides, please check our Payroll Services page or contact me to request a quote.

Those quiet days at the end of the year can be a great opportunity to do a bit of administrative housekeeping. It might seem boring but you’ll thank yourself when you’re doing your tax return next year! Here are five suggestions to get started: Run an eye over your 2024 purchases to check everything is recorded and correctly coded. Now is the time to chase any missing documentation, fix errors and get everything ship shape for your accountant. Review what you spent in 2024 and use this information to help you budget more accurately for 2025. Check what you are owed and work out where you need to follow up on late payments. If you hate chasing customers, consider letting our credit control team do the chasing for you. Look for opportunities to streamline processes. Consider outsourcing non-core functions like payroll and accounts if this could free up staff time for higher value activities. Evaluate the information that you get from your existing systems. Is it helping you to manage your business or is it taking up too much time and just generating administrative headaches? Many GroForth clients say their profitability improves when we prepare monthly management reports and data analytics for them. If you’re not already availing of this service, contact us for details.  We always say that the time you invest in reviewing your business is never wasted. Indeed, it often highlights opportunities to save money and improve profitability. If you are interested in finding out more, drop us an email and we’ll be happy to explain how our team can help you streamline administration and boost efficiency in 2025

2025 Revenue Payroll Notifications Remember that you cannot use 2024 Revenue Payroll Notifications for 2025. RPNs for 2025 are available from Revenue. It is important not to file a payroll submission with a 2025 pay date until the 2025 RPN is available. National Minimum Wage The national minimum wage will increase by €0.80 per hour to €13.50 per hour from 1 January 2025. Payroll taxes Changes announced in the Budget that will affect payroll in 2025 include a €2,000 increase in tax bands and modest increases in personal tax credits. For details of these and other relevant changes see our Budget 2025 article. USC The 4% rate of USC will be reduced to 3%. The entry point contribution rates will increase by €1,622, in line with the increase to the national minimum wage, so it will apply to income between €27,382 and €70,044. Enhanced reporting requirements Enhanced reporting requirements, which came into effect on 1 January 2024, is still in place for 2025. This will affect you if you provide certain reportable benefits to your employees or directors. Reportable benefits include the remote working daily allowance, travel and subsistence expenses and benefits such as Christmas vouchers which avail of the small benefit exemption. From 1 January 2025, there will be an increase in the maximum exemption, from €1,000 to €1,500. This can include up to 5 non-cash benefits per year (an increase from 2 benefits per year). Pensions An auto enrolment pension scheme which will give all employees access to a workplace pension savings scheme co-funded by their employer and the State will be introduced on 30 September 2025. Need help? If you are a GroForth client and need more information on any of the issues mentioned in this article, our team is on hand to help. During busy periods, the best way to contact us is via the contact form on this website or by email

Yesterday marked the 1st of October, the official starting point for Q4 and budget day 2025. During the course of yesterday afternoon, Minister for Finance, Jack Chambers and Minister for Public Expenditure, Paschal Donohue announced a series of measures directed at “putting the country on a firm footing for the future”.  Below is a summary of the key announcements related to business operations that you should take note of: Income Tax: The Universal Social Charge (USC) will be reduced from 4% to 3% on incomes of €25,000 to €70,000. Entry threshold to 3% rate increased by €1,622 to €27,382 The national minimum wage will increase by 80 cent to €13.50 per hour from the 1st of January 2025 The main tax credits - Personal, Employee and Earned Income Credits - will increase by €125 The Standard Rate Cut Off Point will increase by €2,000 to €44,000, with proportionate increases for married couples and civil partners For Capital Gains Tax (CGT) Retirement Relief, the higher age limit will stay, but if you sell assets worth over €10 million, there will be a clawback period of 12 years. After this period, CGT will no longer apply. The Capital Gains Tax relief for investors in innovative start-ups will be improved. The lifetime limit on gains eligible for relief will increase from €3 million to €10 million. For Research & Development (R&D), the tax credit’s first-year payment threshold will increase from €50,000 to €75,000. This will help smaller companies or those using the credit for the first time. Small Benefit Exemption: Employers can now give workers non-cash benefits or rewards worth up to €1,500 (increased from €1,000) without having to pay income tax, PRSI, or USC on it. Company Cars: The €10,000 universal relief for company cars will be extended for another year. Employees with an electric company car will get a total benefit-in-kind (BIK) relief of €45,000 in 2025. This includes €35,000 for electric vehicles and the extra €10,000 temporary relief. Additionally, there will be a BIK exemption for installing electric vehicle chargers at the homes of employees or directors. Other Supports: The Employment Investment Incentive, Start-Up Relief for Entrepreneurs, and Start-Up Capital Incentive will be extended until the end of 2026. The maximum amount an investor can claim under the Employment Investment Incentive will double from €500,000 to €1 million. The relief available under the Start-Up Relief for Entrepreneurs will increase from €700,000 to €980,000. VAT Registration: The VAT registration thresholds are being increased. For the sale of goods, the threshold will go up from €80,000 to €85,000, and for services, it will rise from €40,000 to €42,500. Stock Exchange: A new relief is being introduced to cover expenses for companies listing on an Irish or European stock exchange for the first time, with a limit of €1 million. Need help? We understand that getting a handle on budgetary changes can be daunting particularly when it comes to managing your payroll obligations. If you have questions or need help setting up or running your payroll processes, GroForth can provide practical support. Contact us for details of our payroll services. Sources: https://www.rte.ie/news/budget-2025/2024/1001/1472970-budget-2025-summary/ https://www.irishexaminer.com/business/economy/arid-41487173.html

In this blog, Michelle takes us through the main payroll criteria that employers should be aware of.

In this article, GroForth’s Geraldine explains how to get to grips with the different taxes that could affect your business.

In this article, GroForth’s Michelle Collins explains how introducing a Virtual Accounts Department can positively impact your business.

In this blog, we share five common payroll pain points that people complain about along with some tips for how to resolve them.