Payroll for Employers

If you are one of the many people who had problems with your payroll in 2010 and wrestled with the calculation and submission of your 2010 P35, the good news is that the start of the Tax Year is the time to ensure that these problems do not reoccur in 2011. By putting a proper system in place at the start of the Tax Year, you will ensure that you avoid any of the problems associated with payroll as the year progresses. If on the other hand, you wish to enrage even the most timid of Employees you should make some mistakes in the calculation of their payslip. This is a sure-fire way to cause friction with your Employees. An Employee who thinks that he/she is being ‘done’ on their salary will not be a happy and productive part of your team.

The good news is that there are 2 possible solutions that we would recommend to this problem:

  1. Purchase some Payroll Software and learn how to use it properly. If you contact the office, we will be glad to recommend our preferred product. It is not expensive and does everything you will require from a payroll system. We also recommend that you take a training course in using the Payroll Software, regardless of which product you purchase. If you are new to payroll and purchase software without taking a training course, you may as well buy a printer and refuse to buy ink for it. It won’t work properly and will lead to both problems and frustration.
  2. Outsource your Payroll Services: As accountants, we believe that self-employed people should focus their energies on what they do best and find others to provide whatever other skills are required to run their business efficiently. At Robert King & Co we can offer a professional, cost-efficient payroll service to all Employers, regardless of size. We deal with all aspects of payroll from the calculation of payments to employees and the issue of payslips, to the submission of all Employers filing obligations with the Revenue Commissioners. Payslips can be issued in paper or in electronic format. We will also deal with the documentation of Employees who join or leave during the year. For a quotation, please don’t hesitate to contact the office.

Regardless of which option you choose, we cannot emphasise strongly enough the importance of using a proper system for your payroll. It will also ensure that your submissions to the Revenue are correct and will satisfy the requirements of any checks or audits you may be subjected to. Payroll is an essential component of the financial management of your business and without a great investment of time or money, it can run smoothly and without any headaches. Businesses have enough to worry about at the moment without adding to the list.

Employers P35 Return

If you’re an accountant, February 14th isn’t all about flowers and chocolates. It’s an important day for Employers because it’s the last day before the deadline (15th February) for the submission and payment of the 2010 P35 Returns to the Revenue Commissioners.

What is a P35?

A P35 Return is the annual summary of all amounts (Income Tax, Employers and Employees PRSI together with the Income Levy) payable by an Employer to the Revenue Commissioners for the 2010 tax year. These are listed by Employee and the total amount on the P35 Return should equal the sum of the P30 Returns submitted during 2010. Any shortfall in the amount paid during the year is to be paid with the P35 Return. The P35 return also gives the Revenue the required information about each individual employee and will correspond with the P60 form, together with the Income Levy Cert that is issued to each employee at this time.

The P35 Return can be submitted in paper format or electronically via ROS. In order to avail of the electronic submission facility, you must be registered with your accountant as a ROS client. Registration is straightforward and can be done very quickly. We recommend electronic submission of the P35 return, and all other Revenue tax forms, as it ensures you beat the deadline and there are no issues with delays in the post etc. A late submission of a P35 Return will automatically result in a fine.

The most common mistake relating to the failure to submit a correct P35 Return is the use of incorrect PPS numbers for Employees. If a PPS number is invalid, the P35 Return will be rejected by ROS so it’s a good idea to check all employees PPS numbers well in advance of the submission date.

As always, if you have any other queries re the submission of your p35 Return, please don’t hesitate to contact the office.