Enhancements to Statutory Deductions

The Statutory Deductions calculation card is automatically created for each employee when you complete the new hire process if the value of your country setting on the Features by Countries or Territories page is either Payroll or Payroll Interface. The new hire process automatically creates an element entry for the Taxes and Social Insurance element, where you have defined the element eligibility and the employee meets the eligibility criteria.

You can specify the default values to use for a specific tax reporting unit (TRU) or payroll statutory unit (PSU). Use the Legal Entity Calculation Cards task to set PSU-level default values. Use the Legal Reporting Unit Calculation Cards task to set TRU-level default values.

The automatically created Statutory Deductions card contains the following components and component details within two component groups:

Taxes

  • PAYE component with employer reference and employment ID and component detail with tax basis (defaults to emergency), tax credit, tax rates and cutoffs along with previous employment pay and tax information.
  • Legacy Information component with the legacy employer reference.
  • Exclusion Order component for payroll administrators to add a PAYE exclusion.
  • Emergency Tax Periods component to record the additional emergency tax periods and shadow payroll indicator.
  • Local Property Tax component with the relevant amount to be deducted.

Social Insurance

  • Pay Related Social Insurance component with the default contribution class set to A.
  • PRSI Exemption component to add an exemption to PRSI and reason.
  • Insurable Weeks Regular Override component to capture an override number of weeks which will remain in place from the effective start date until it’s manually end dated or changed.
  • Universal Social Charge component with USC status, USC rates and cutoffs along with previous employment pay and deduction information.
  • Extra Employment Details component to flag community employment and company director type.

Many of the component details are automatically updated following RPN instructions. The RPN number and issue date are recorded on the relevant card(s). Where appropriate, you can enter overrides within the component sections.

As part of the phased delivery of payroll for Ireland, the calculation card components, associated elements and calculations are delivered for Pay As You Earn (PAYE), Universal Social Charge (USC), Pay Related Social Insurance (PRSI) and Local Property Tax (LPT).

Steps to Enable

You don't need to do anything to enable this feature.