Enhancements for Pay As You Earn, Shadow Payroll

As part of the phased delivery of the Irish payroll localization, the calculation card components, associated elements and calculations are enhanced for Pay As You Earn (PAYE) to include Shadow Payroll processing including withholding of net pay for employees with sourced employment income outside of Ireland.

These fields are available for the PAYE Additional Information component:

• Additional Emergency Tax Periods
• Shadow Payroll option
• Yearly Foreign Tax Credit
• Section 984 Dispensation option

The process continues to calculate statutory deductions as if the employee is being paid in Ireland, although the employee doesn't receive the payment. The application generates a Shadow Payroll Withholding amount element entry to reduce the Net Pay to 0.

You can use this feature for a nonresident employee working both in and out of the state, and ensure that the employee is taxed only for the days worked in Ireland.

Steps to Enable

1. Create an Information element with the primary output value and subclassification rule Information subject to Section 984 Dispensation.
2. The balance Shadow Payroll Withholding Amount is created.
3. Balances feeds are created for Gross Pay and Gross Earnings when you use the subclassification rule.
4. On the PAYE Additional Information calculation component of the Statutory Deductions card, set the Section 984 Dispensation option as No. 
5. The PAYE return element returns the value for Section 984 Dispensation.