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PAYE

The employer must notify the Revenue of each new employee to the payroll on the Revenue On-Line Service (ROS). ROS enables employers to electronically receive and download employer copy Tax credit certificates. The Revenue will forward TAX Credit details to the school on ROS within 24 hours. The school must import the Tax Credit details to the Payroll system. The Payroll system will calculate the correct TAX. If you have not received a Tax Credit Certificate for an Employee your must apply Emergency Tax.

USC

The Tax Credits details received from Revenue will also give details on the correct USC rate to apply. The Payroll system will calculate the correct USC to deduct. If a person reaches 70 years at any stage during the year they will benefit from the maximum 4% rate for the whole year. If you have not received a Tax Credit Certificate for an Employee your must apply the Emergency USC rate of 8%.

The USC charge will not apply to Maternity Benefit.

PRSI

The Teachers PRSI class will be determined by the date the teacher commenced teaching.

Teachers who commenced teaching before the 6th April, 1995 will pay PRSI at the D Class  and for all income earned in the school will be subject to PRSI at the J Rate.

Teachers who commenced after the 6th April 1995 will pay PRSI at the A Class and all supplementary income earned in the school will be at the Class a rate.

The Payroll computer system will calculate the correct PRSI once the correct PRSI Class is entered for each employee

PRSI is fully chargeable on payments by private sector employees in respect of:

  • Superannuation contributions
  • Permanent health benefit schemes (including income continuance schemes)
  • Revenue approved schemes established under irrevocable trusts, overseas pension schemes
  • and other Revenue exempt approved schemes
  • Personal Retirement Savings Accounts
  • Deductions in respect of Revenue approved retirement funds

ASC (Additional Superannuation Contribution)

This new contribution will be in addition to the existing superannuation contribution made by public servants currently and will apply to pensionable remuneration only.

Under the new pension arrangements non-pensionable income such as supervision & substitution, selection committee payments, State Examination remuneration paid by the school, payments to teachers for privately paid hours, un-rostered overtime, etc. will be exempt from ASC.

The rates and thresholds for ASC effective from the 1st of January 2019 are as follows:

Public Servants who are Members of pre-2013 Pension Schemes with Standard Accrual Terms
Amount of Remuneration / Threshold Rate of Deduction
Up to €32,000 Exempt
Greater than €32,000 but not over €60,000 10%
Greater than €60,000 10.5%

It is the responsibility of public service employers to ensure that the correct rate of ASC is deducted from employees

 

Public Servants who are Members of Single Service Pension Scheme
Amount of Remuneration / Threshold Rate of Deduction
Up to €32,000 Exempt
Greater than €32,000 but not over €60,000 6.66%
Greater than €60,000 7%

It is advised that the deduction is calculated at the marginal rate (e.g.10.5%) where all earnings for the individual cannot be ascertained.


Holiday Entitlements

What to include when calculating an entitlement to Holidays:

In calculating how many days’ holidays to which an employee may be entitled, employers should include all hours worked including time spent on statutory maternity or adoptive leave during the school year and public holidays taken during the calculation period.  Christmas and Easter leave periods should also be included if employment of the teacher does not cease during these periods.

Pay in respect of holidays to part-time teachers should be made prior to the cessation of employment at the end of the school year.  The calculation of holiday pay is determined by reference to the part-time rate which the Department issues to Boards of Management by Circular Letter from time to time.

In the leave year, a part-time teacher’s holiday entitlements should be calculated as follows:

8% of the hours a part-time teacher works in the period 1st September xxx to 31st August xxxx  (but subject to a maximum of 4 working weeks).

Public/Bank Holiday

A regular part-time teacher is entitled to be paid for a public holiday.

Part-time employees must have worked at least 40 hours in the 5 weeks ending on the day before a public holiday to qualify for public holiday benefit.

There are nine public holidays as follows:

  1. Christmas Day
  2. St. Stephen’s Day
  3. The 1st of January
  4. St. Patrick’s Day
  5. Easter Monday
  6. The first Monday in May
  7. The first Monday in June
  8. The first Monday in August
  9. The last Monday in October

Note: Good Friday is not a public holiday. While some schools and businesses close on that day, you have no automatic entitlement to time off work on that day.

Part-time teachers who are not normally required to work on a public holiday will be entitled to one fifth of the sum paid in respect of the normal weekly hours worked by the part-time teacher before that public holiday.

If the part-time teacher ceases to be employed during the week ending on the day before a public holiday, having worked during the 4 weeks preceding that week, s/he is entitled to receive pay for the public holiday.

In the event that a part-time teacher is required to work on a public holiday s/he will be entitled to a day’s pay for the public holiday.

Rates of Pay

Please contact us for information on rates of pay.