Week 53

'Week 53' occurs when there are fifty-three weekly pay days in the year. This happens when a pay day falls on 31 December or, in a leap year, on 30 or 31 December.


WEEK 53 - PRSI

PRSI operates as a weekly contribution deducted from each individual pay periods Gross salary. PRSI continues to operate in Week 53 under the normal PRSI weekly rules of deduction.



WEEK 53 - PAYE

Revenue states that the employer should set the PAYE tax credits and the standard rate cut-off point against that payment on a non-cumulative basis (week 1/month 1 basis) in accordance with the following table:


Week 53: Revenue rules for PAYE SRCOP and tax credits


Revenue guidance on the operation of PAYE in Week 53 can be found on the Revenue website; 'Employers Duties at the end of the Income Tax Year' (Chapter 15)



WEEK 53 - USC

Revenue states that the employer should set the USC Cut-Off Points against the gross USC'able pay, in the Week 53 pay period, in accordance with the below table. It is the last advised RPN (previously know as P2C) for each employee which is key in determining the appropriate USC deduction basis.

While on the face of it, all PAYE and USC deductions should operate on a Week 1 basis in the Week 53 pay period, Revenue issue a set of separate guidelines in relation to the deduction of USC specific to historical pay circumstances. It is the responsibility of the employer to choose how to operate the Week 53 USC deduction in consideration of same, on an employee by employee basis.


If a Week 53 occurs then apply Week 53 USC COP, in accordance with the below table, for each employee fulfilling the following criteria:

• to each employee in continuous employment with the same employer
  and where they have a pay date which has not changed in the current or previous tax year
• if a change in pay date is due to a normal situation such as a change in department
• if a change in pay date is due to a change in pay frequency in the normal events of a career path (promotion results in a change from fortnightly pay to weekly pay)

Week 53: Revenue rules for USC COP in Week 53



Do not apply the above table where an employee, in unbroken employment with you, changes their normal pay date during the current tax year (within which week 53 occurs) or in the previous tax year. In these circumstance apply the appropriate USC calculation in accordance with the below table:

Week 53: Revenue rules for USC COP in Week 53 where changes in pay date occur


Revenue guidance on the operation of USC in Week 53 can be found in the Revenue publication 'USC FAQ'




WEEK 53 IN COLLSOFT


Within CollSoft Payroll, the Week 53 tax rules are automated and triggered by the processing of a pay period on week 53, fortnight 27, or four-weekly 14. All tax deductions are made in accordance with the Revenue Week One basis ruling, therefore there is no requirement for users to amend the revenue details for each employee held within CollSoft Payroll.


Once Week 52/Month 12/ Fortnight 26/Four-Weekly 14 is processed CollSoft automatically offers an option to process a Week 53 (or equivalent for other pay frequencies). Simply select the additional pay period listed on the vertical bar within the Wages Menu.



Week 53: Starting Week 53


CollSoft will open an additional payroll for the additional pay period, automating the Week 53 rules as relevant to the pay frequency.





WEEK 53 USC FLAG

In creating Week 53 CollSoft Payroll will warn all users of the USC implication for employees. It is important that users understand the USC rules in relation to the operation of Week 53 and apply the relevant USC flags provided by CollSoft Payroll.

As explained in the above tables, the operating rules for PAYE and PRSI in Week 53 are straightforward and are automated by CollSoft payroll.

As also explained in the above USC tables, the operating rules for USC are more complex and are dictated by events outside of the scope of payroll processing, therefore the payroll operator must decide whether or not the additional USC COP point applies in each employees circumstance.

In the set up of Week 53 the payroll will prompt you with further information pertaining to the operation of USC with informative links, as shown below.



Week 53: USC Payroll Prompt



WEEK 53 USC CUT-OFF POINT FLAG

For Week 53 only, each employees Week 53 wage record has a USC flag attached, this is shown below.




Week 53: Wage Record



ALLOW WEEK 53 USC CUT-OFF POINT

By default every employee Week 53 is flagged to allow an additional USC COP for that period.
For each employee's wage record that is flagged to 'Allow Week 53 USC Cut-Off Point' , CollSoft Payroll will apply the additional USC Cut-Off Point in accordance with the Revenue applicable USC rules based on their USC basis as per their employee record (as updated in CollSoft Payroll).



It is the payroll administrator's responsibility to identify if the employee's circumstances during the year render them ineligible of receiving the additional USC COP.



DISALLOW WEEK 53 USC CUT-OFF POINT

Some such disqualifying circumstances (as explained above) include:

• changes their normal pay date during the current tax year (within which week 53 occurs)
• changed their normal pay date in the previous tax year

For ineligible employees you must unflag the 'Allow Week 53 USC Cut-Off Point', the payroll will automatically operate USC in line with the above table based on each employees USC basis (as indicated in their employee record).




Once the payroll administrator choose the correct USC flag no further action is required by them, CollSoft payroll will thereafter apply the USC rules appropriate to their USC basis on file.




P35 WEEK 53 FLAG

The Revenue P35 and ROS format P35 submission require the flagging of any employee for whom Week 53 was operated. If a week 53/fortnightly 27/four-weekly 14 payroll is processed for an employee, CollSoft payroll will indicate this at each relevant employee record (as there may not be a payroll in the particular period for all employees) on the relevant P35 reports and generated ROS file.



Important:
Week 53 should only to be used to process a genuine payroll for additional days worked after the final date of Week 52. Week 53 should not be used to amend payroll errors or to process additional bonus payments which are not related to actual remuneration for this additional payroll period.