When it come to owning and running a business there are many rules and regulations that need to be adhered to. Some are well know such as VAT returns and others are less well known. The revenue commissioners are always refining how these rules and regulations work. Some times they make major changes and sometime the changes can be more subtle.
Recently the revenue commissioners issued a tax briefing that was directed at employers, and in it they outlined their obligations connected with a companies register of employees. More specifically they described how to keep, maintain and produce, in paper or electronic format, a register of all employees. While this notification is not exactly hot off the press in terms of accounting news, it is a topic that can get over looked as a business is focused on other matters related to there financials.
The reasons for a business to take a look at this function of there business and assess weather or not they are in line with revenue regulations is that from time a revenue official will carry out pre-arranged or unannounced visits to business premises to verify various aspects of taxation compliance.
You are probably familiar with the story’s either through chatting with business colleagues or perhaps through stories appearing in the media where Revenue Commissioner officials have called to various types of businesses, ranging from restaurants to retailers, to pubs just to name a few types of businesses to verify the rate of VAT applied, through the inspection of till systems.
Similarly the revenue commissioners officials have now begun inspecting a companies Register of Employees to ensure everything is in order and that the business is in compliance with revenue regulations.
Below are the components of the regulation that you will need to have in order regarding you Register of Employees to be in compliance.
You will need to record and maintain the following:
- The name, address and Personal Public Service Number (PPSN) of each employee
- The date of commencement of employment of each employee
- The date of cessation of employment of each employee, where relevant.
This not only includes all current full time members of staff but also must include temporary, part-time or casual employees.
Your register of employees information, those details outlined above should be maintained at either the normal place of employment of the employee or the main place of business of the employer.
For businesses that have more than one location, the main place of business, for the purpose of retention of the register, is determined by where payroll records and staff records are held, for example a business’s HQ. If your business has more than one location, a Revenue Officer may only visit one branch of your business and may request an extract of your Register of Employees that will relate to just that one branch.
Also this is a very important point as many businesses use outsourcing for their payroll function or will use a software package. If this includes you then you need to be aware that the onus remains on you, the employer, to keep and maintain the Register of Employees at your normal place of business. If your business does outsource its payroll function it would be advisable to obtain a copy of the register on a regular basis from your tax/payroll agent.
You maybe wondering at this point what are the penalties or implications should you be found to be non-compliant when it comes to maintaining your Register of Employees details.
The revenue commissioners have outlined the following:
- Failure to keep and maintain a Register of Employees carries a penalty of €4,000.
- If your business is a limited company, the secretary of the company will be subject to a separate penalty of €3,000.
- If you fail to produce any records which the Revenue Officer requires for the purpose of his/her inquiry you will be liable to a penalty of €4,000.
The good news here is that if you are already fulfilling your obligation to register your employees with the Revenue Commissioners for PAYE purposes. Then the details required to be included in your Register of Employees should be information you will already have in your possession it will simply be a matter of presenting the information in the required format.
If you have any questions on the above topic or you require some assistance in getting your Register of Employees details in order. Or indeed you have other PAYE/PRSI/Employee related issue you would like to discuss then please do not hesitate to make contact with us.
If you need a Dublin based accountant to look after your accounting, bookkeeping, management accounts or other financial related business needs. Then click here now to call us here at Kilcoyne Accountants for a discussion regarding your requirements.