IPASS 2022 - Top Takeaways for your Payroll

Following our recent visit to iPass 2022 we’ve put together our top takeaways that might impact your payroll in the future. If you would like any further detail on the implications for your business please feel free to contact our Payroll Department directly.


Gender Pay Gap

The Gender Pay Gap Information Act 2021 requires organisations to report on their hourly gender pay gap across a range of metrics. Organisations with over 250 employees are being asked to report on their Gender Pay Gap for the first time in 2022. In 3 years’ time it will be extended to all public and private sector employers with 50 or more employees.

To comply with their gender pay gap information obligations, employers with over 250 employees are now required to choose a “snapshot date” in June 2022.  Employers must then compile and publish the required gender pay gap information within six months from that snapshot date, in December 2022. The reference period for the calculations is the 12 months prior to and including the snapshot date.


New Public Holiday

From 2022 there are 10 Public Holidays per year (including a new one 18th of March – introduced this year).

From 2023 onwards there will be one more Public Holiday - First Monday in February.


BIK Overview

CARS

Changes to BIK on company’s cars  will be introduced from the 1st of Jan 2023.

Currently, BIK calculations are based on OMV and annual business Km’s. From 1st January 2023 it will also be based on CO2 emissions.

The new system will have 5 bands: A = Lowest emissions to E = Highest emissions.

There will be 4 BIK rates within each band linked to annual business Km’s. The rates will range from 9% to 37.5%.

VANS

The BIK rate will increase from 5% to 8% of the original market value (OMV).

Electric Vehicles

For 2022 there will be no BIK where OMV does not exceed €50,000. BIK will be calculated as  normal on excess OMV over €50,000.

For an electric vehicle made available for an employee’s private use during the years 2023 – 2025, the cash equivalent will be calculated based on the actual original market value (OMV) of the vehicle reduced by OMV will be reduced by:

  • €35,000 in 2023

  • €20,000 in 2024

  • €10,000 in 2025

If the reduction reduces the OMV to Nil, a BIK charge will not arise. Any portion of OMV remaining, after the reduction is applied, is chargeable to benefit-in-kind at the prescribed rates.


Remote Working Relief

For 2022 and subsequent years 30% of the cost of electricity, heating, and broadband can be claimed.

For the years 2021 and 2020, the following can be claimed.

-       10% of the cost of heating and electricity

-       30% of broadband (by concession from 2020)

Prior to 2019, only 10% of the cost of heating and electricity could have been claimed.

There is no legislative requirement for a formal agreement between the employer and employee, however it is expected that there will be such an agreement in place.


Statutory Sick Pay

Currently, there is no legal right to sick pay in Ireland, although it was announced that a Sick Leave Bill 2022 is due to be introduced this year. It will legislate for a statutory sick pay scheme for all employees, phased in over a four-year period.

The new scheme will start with three days per year once the Bill is enacted, rising to five days in 2023, seven days in 2024, and ten days in 2025.

Sick pay will be paid by employers at a rate of 70% of an employee’s wage, subject to a daily maximum threshold of €110. An employee will have to provide a medical cert and have at least 13 weeks of continuous service.


Don’t forget if you would like any insight into how these changes may affect your payroll. Please get in touch!

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2022 Payroll Update

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Accountex 2022