Gross Pay Adjustment Wizard

The term “Gross Pay” is something that most of us think we understand, but it is likely that we don’t understand it completely. Ten years ago Gross Pay was generally understood to be your taxable pay, but now with PAYE Modernisation that is no longer the case.

In PAYE Modernisation there is now 5 different Gross Pays;

Gross Pay
Gross Pay For Income Tax
Gross Pay For USC
Gross Pay for Employee PRSI
Gross Pay for Employer PRSI


These Gross Pays are reported to Revenue for each employee every time you make a submission, and Revenue have been analysing your submissions and checking what you have reported for the various Gross Pays.

In particular Revenue are checking the following;
  • Gross Pay is less the Pay for Income Tax
  • Gross Pay is less than Pay for USC
  • Pay for USC is less than Pay for Income Tax
  • Pay for USC is not equal to Pay for Employee PRSI

Generally speaking most submissions pass these tests without issue, but sometimes they may not if you have configured you Payroll Software incorrectly.

In CollSoft Payroll (and many others) there are user definable Pay Elements, each of which can be configured to be subject to PAYE, USC and PRSI by the user.

We have seen the following mistakes made by users while configuring their Pay Elements;
  • A tax free payment (subsistence, expenses, country money etc) which has been configured to be exempt from PAYE and PRSI but not USC
  • Similar to the 1st item, In CE Schemes users have setup a “Winter Fuel Allowance” which has been configured to be exempt from PAYE and PRSI but not USC.
  • A “Bike To Work” or “Tax Saver Travel Ticket” deduction that has been setup as allowable for PAYE and PRSI but not allowable for USC.
  • A pension deduction that has been setup to be allowable for PAYE, PRSI and USC – this is incorrect because employee pension contributions are not allowable for PRSI or USC.

If you have setup a Pay Element like any of the above then your employees may have not paid the correct USC or PRSI, in some cases these will be underpayments, in others they will be over payments, but in all cases they must be corrected.

We have added a new Wizard which helps you to resolve any issues that you may have with the Gross Pays reported to Revenue.

Full details of how it works is available here>>
Creation date: 06/12/2019 15:37     Updated: 06/12/2019 15:38
Files
Gross_Pay_Adjustments.pdf