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  • Ireland Revenue Announces New Phase of COVID-19 Wage Subsidy Scheme

    by Rosemary Birardi | May 19, 2020

    The Office of the Revenue Commissioners (Revenue) of Ireland announced that as of 8 May 2020, the COVID-19 Temporary Wage Subsidy Scheme (TWSS) has entered an "operational phase" that replaces the initial determination of wage subsidies when the program was put in place on 26 March 2020.

    The TWSS provides eligible employers with a subsidy that must be included as part of employees' wages. The program is open to employers that have experienced significant negative economic disruption due to COVID-19. Employers should be able to show that they meet the eligibility criteria set out by Revenue.

    The TWSS is operated in real-time by employers through the normal payroll process and is based on an employee's gross pay. The amount of the subsidy paid to an employee must be indicated on the employee's payslip labeled as "GovC19 WageSub."

    During the initial phase of the TWSS, eligible employers were reimbursed a maximum subsidy of €410 for each eligible employee, regardless of the employee's income. As of 8 May 2020, Revenue confirmed that the TWSS is now based on each eligible employee's average net weekly pay for January and February 2020, as shown on payroll reporting to Revenue by the employer. Revenue also announced that it has implemented most of the revised TWSS subsidy rates, which are effective for payroll submissions made to Revenue on or after 4 May 2020.

    Details about the administration of the TWSS during the operational phase are available on Revenue's website. Updated statistics on the administration of the TWSS are also available.

    Edward Kowalski, Esq., is Manager of Payroll Information Resources for the American Payroll Association.

  • Congress Xstream, GPMI's Totally Virtual Conference & Expo Launches

    by Rosemary Birardi | May 15, 2020

    You may be familiar with GPMI's Virtual Congress, however were you aware GPMI, in cooperation with APA, has launched a larger event, Congress Xstream: An Online Conference & Expo, 2-5 June. Congress Xstream brings you online world class payroll education for professionals in payroll, tax, finance, global mobility, human resources, and benefits. Delivered over four days, this exclusive virtual payroll event provides opportunities to explore a wide spectrum of payroll topics and offers virtual networking opportunities with payroll professionals and vendors.

    Four general sessions combined with 28 workshop options (18 that provide globally focused content or are of interest to global professionals) divided over eight workshop sessions will provide a variety of content and educational opportunities for all levels of payroll professionals. GPMI participants can choose from workshops such as:

    • Expatriate Payroll 101: Everything You Need to Know to Get Started
    • Global Payroll Models in Detail: Which Is Right for You?
    • The Payroll Global Culture Map
    • U.S. Employers and Global Payroll Challenges
    • Winning Globally: Discovery, Strategy, Governance
    Providing a well-rounded and balanced experience is our goal with Congress Xstream. Participants will also have access to a staffed and interactive Expo and networking lounges. Chat with leading service and resource providers, including being able to participate in demonstrations. Interact with colleagues from around the globe in the networking lounges; share experiences and war stories. Each day allows for something new.

    Virtual Congress & Expo, 24-25 June
    Included with your registration to Congress Xstream, is Virtual Congress on 24-25 June. These sessions are all NEW, no repeats! There are three general sessions, including "Cultural Currency" presented by the 2019 Global Vision Award Winner, Kira Rubiano. Attendees can choose between 13 concurrent sessions to customize their learning experience, expand their payroll knowledge, and explore new areas available to payroll professionals. Workshops for the two-day event include:
    • Global Money Moving Mania
    • Storytelling With Payroll Data
    • The Future of Global Payroll - Maximize Impact Through the Global Governance Framework
    • The Role of Shared Services in Global Payroll
    Both events, separate or together, offer participants an immense opportunity to learn and grow as payroll professionals. Participants will have on-demand access to Congress Xstream until 5 September and Virtual Congress until 25 September. For complete information and to register, please visit www.globalxstream.com.

    Scott Wilson, CAE, PMP, is Director of Strategic Initiatives for the Global Payroll Management Institute and American Payroll Association

     

  • United Kingdom Relaxes Residency Rules Due to COVID-19

    by Rosemary Birardi | May 14, 2020

    The United Kingdom announced it is relaxing its residency rules due to travel restrictions caused by COVID-19. Whether days spent in the U.K. can be disregarded due to exceptional circumstances depends on the individual's facts and circumstances.

    New Exceptional Circumstances
    There are new exceptional circumstances listed by the U.K. government during the COVID-19 crisis. These circumstances are considered as "exceptional" if a person:

    • Is quarantined or advised by a health professional or public health guidance to self-isolate in the U.K. as a result of the virus;
    • Is advised by official government advice not to travel from the U.K. as a result of the virus;
    • Is unable to leave the U.K. as a result of the closure of international borders; or
    • Is asked by his or her employer to return to the U.K. temporarily as a result of the virus.
    General Residency Rules
    Whether a person is a U.K. resident usually depends on how many days are spent in the U.K. in the tax year (6 April to 5 April the following year). A person is automatically a U.K. resident if he or she spent 183 or more days in the U.K. in the tax year or if his or her only home was in the U.K. (the person must have owned, rented, or lived in it for at least 91 days in total and spent at least 30 days there in the tax year).

    A person is automatically a nonresident if he or she spent fewer than 16 days in the U.K. (or 46 days if he or she has not been classified as a U.K. resident for the three previous tax years) or he or she works abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the U.K., of which no more than 30 were spent working.

    Jyme Mariani, Esq., is Managing Editor of Payroll Information Resources for the American Payroll Association.

     

  • GPMI Launches a COVID-19 Resource Page

    by Rosemary Birardi | May 13, 2020

    GPMI, along with its partners have developed a COVID-19 resource page to assist global payroll professionals as we continue to navigate these uncharted waters. This one-stop-shop has compiled articles, webinars, resources, and tools to provide insight, guidance, and support as the globe responds to the pandemic differently. As such employment and payroll requirements have become center stage; as a payroll professional our subscribers need to know where to find country specific information that their employers need.

    There is arguably no more crucial function within an organization than getting employees paid accurately and on time. As employers respond to the spread of the novel coronavirus disease 2019 (COVID-19), payroll professionals must be prepared for questions from company executives, managers, and employees. The actions companies are taking in response to COVID-19, whether to reduce working hours, allow more employees to work from home (telecommuting), or shut down indefinitely, are raising difficult compliance questions for payroll. The content will be continuously updated to ensure subscribers have the most up-to-date information to perform their jobs at the highest level possible.

    Scott Wilson, CAE, PMP, is Director of Strategic Initiatives for the Global Payroll Management Institute and American Payroll Association

  • Tax Guidance for Remote Employees in Singapore Due to COVID-19

    by Rosemary Birardi | May 13, 2020

    The Inland Revenue Authority of Singapore (IRAS) is providing tax guidance to employers and taxpayers that may be affected by COVID-19. Employees working remotely from Singapore due to COVID-19 will not be considered to be working in Singapore and their employment income will not be taxed in Singapore as long as certain conditions are met.

    Two Types of Remote Employees
    The tax guidance applies to two types of remote employees:

    1. Singaporeans and Singapore permanent residents who work overseas and are now working remotely in Singapore for that job due to COVID-19.
    2. Nonresident foreigners who work overseas and are on a short-term business assignment in Singapore and unable to leave due to COVID-19.
    Employment Income Not Taxable in Singapore
    Singaporeans and Singapore permanent residents will not be considered to be working in Singapore for the period from the date of their return to 30 September 2020 provided:
    1. There is no change in the contractual terms governing their employment overseas before and after their return to Singapore.
    2. This is a temporary work arrangement due to COVID-19.
    If these conditions are met, their employment income for the period of their stay in Singapore up to 30 September 2020 will not be taxable in Singapore.

    Nonresident foreigners will not be considered to be working in Singapore for the period of their extended stay provided:
    1. The period of their extended stay is for no more than 60 days.
    2. The work they have done during their extended stay is not connected to their business assignment in Singapore and would have been performed overseas if not for COVID-19.
    If these conditions are met, their employment income for the period of their extended stay in Singapore will not be taxable in Singapore.

    Note: If the above conditions are not met for either type of remote worker, then normal tax rules will apply to determine the taxability of their employment income.

    Laura Lough, Esq., is Director of Publications for the American Payroll Association

     

  • IRS Updates Foreign Earned Income Exclusion Requirements for 2019, 2020

    by Rosemary Birardi | May 12, 2020

    The U.S. Internal Revenue Service (IRS) updated several procedures relating to Internal Revenue Code (IRC) §911 for the foreign earned income exclusion requirements and residency and presence tests for 2019 and 2020.

    Background
    IRC §911 allows a "qualified individual" to exclude foreign earned income from gross income up to a certain amount ($105,900 in 2019; $107,600 in 2020). An employer need not withhold federal income tax from any wages paid to a qualifying employee it reasonably believes will be excluded under IRC §911. A qualifying individual is an individual who is a U.S. citizen and a bona fide resident of or present in a foreign country for a specified portion of the taxable year.

    IRC §911(d)(4) provides an exception to the residency and presence eligibility requirements if an otherwise qualified individual leaves a listed foreign country because of war, civil unrest, or similar adverse conditions that preclude the normal conduct of business, on or after a certain date, pursuant to a determination by the U.S. Secretary of the Treasury (in consultation with the Secretary of State). In such a case, the income exclusion will apply even though the individual was not in the foreign country for the statutorily prescribed period, if the individual can show that but for the adverse conditions he or she had a reasonable expectation of meeting the requirements of IRC §911.

    Countries With a Waiver for 2019
    The IRS released a supplemented list of countries for which some of the foreign earned income exclusion requirements of IRC §911 are waived for 2019 (with departure dates) [Rev. Proc. 2020-14; 2020-16 IRB 661]. The list contains the Democratic Republic of the Congo (with a departure date of January 13, 2019); Haiti (with a departure date of February 14, 2019); Iraq (with a departure date of May 14, 2019); Sudan (with a departure date of April 11, 2019); and Venezuela (with a departure date of January 24, 2019).

    Residency and Presence Test Waivers
    In response to COVID-19, the IRS also is waiving the residency and presence tests for certain U.S. individuals who were in China, excluding Hong Kong and Macau, as of December 1, 2019, or were otherwise outside of the United States as of February 1, 2020 [Rev. Proc. 2020-27, 4-21-20]. The covered period ends on July 15, 2020, unless the IRS announces an extension.

    To qualify for relief under IRC §911(d)(4), an individual must have established residency, or have been physically present, in the foreign country on or before the dates specified above. Individuals who were first physically present or established residency in China after December 1, 2019, or another foreign country after February 1, 2020, would not be eligible for the waiver. Individuals seeking to qualify for the IRC §911 foreign earned income exclusion because "they could reasonably have been expected to have been present in a foreign country for 330 days but for the COVID-19 Emergency" and have met the other four requirements may use any 12-month period to meet the qualified individual requirement.

    Jyme Mariani, Esq., is Managing Editor of Payroll Information Resources for the American Payroll Association

  • GPMI's Inaugural Global Payroll Titan Recipient Announced

    by Rosemary Birardi | May 08, 2020

    Sharon Tayfield, Director of Global Payroll Operations in the London branch of BDO LLP (UK), has been named the Global Payroll Management Institute's inaugural Global Payroll Titan award winner. The award program was held in conjunction with Global Payroll Week, 27 April - 1 May, and recognizes a professional who demonstrates measurable positive effects for their organization, a commitment to the global payroll industry, and an innovative approach to global payroll issues.

    Tayfield has more than 25 years of experience in the global payroll industry and extensive technical knowledge and experience with global compliance and legislation. She earned the Payroll Technician Certificate in 2014, offered by the Certified Institute of Payroll Professionals, and she is a frequent contributor to GPMI's Global Payroll e-magazine.

    Tayfield was selected as the recipient out of a field of more than 60 nominees from all over the world who all work in the global payroll industry. She received complimentary virtual education from GPMI, a citation, and digital badge for her LinkedIn profile.

    The Global Payroll Management Institute launched its inaugural Global Payroll Titan award program on 13 February as part of its Global Payroll Week 2020 celebration. The award program celebrates, empowers, and recognizes the outstanding professionals responsible for processing multi-country payrolls.

    Cynthia Crise is the Public Relations and Social Media Coordinator for the American Payroll Association (APA) and the Global Payroll Management Institute (GPMI).

  • Mexico Increases Minimum Wages

    by Rosemary Birardi | Jan 22, 2020

    In December, the Council of Representatives of the National Minimum Wages Commission (Conasami) announced an increase in the general and professional minimum wages in Mexico [Bulletin No. 022/2019, 12-23-19].

    As of 1 January 2020, the general minimum wage (SMG) increases to 123.22 Mexican pesos per day of work throughout the country, with the exception of the North Border Free Zone (ZLFN). The amount was calculated by adding 14.67 pesos, figured through the Independent Recovery Amount (MIR), and includes an inflation factor of 5%. In the ZLFN, the minimum wage increases to 185.56 pesos per day, which is also a 5% increase.

    In the case of minimum professional salaries for the rest of the country, the MIR of 14.67 pesos and the 5% inflation factor should be applied.

    Andrés Peñaloza Méndez, President of Conasami, said that there has been a significant step in the recovery of the purchasing power of the most unprotected workers. Méndez also said the revision of the table of professional minimum wages will continue to be updated, and he emphasized correcting the cases for domestic workers and agricultural laborers.

    Jyme Mariani, Esq., is Managing Editor of Payroll Information Resources for the American Payroll Association

  • Reduced Unemployment Rate for Dutch Employers of Permanent Contract Employees

    by Rosemary Birardi | Jan 17, 2020

    As of 1 January 2020, the Dutch Balanced Labor Market Act (Wet arbeidsmarkt in balans, WAB) provides a 5% reduction in the unemployment insurance (UI) contribution premium (WW-premie) rate for employers with employees under permanent contracts (i.e., indefinite term contracts). Employers can pay a UI contribution rate of 2.94% for employees with permanent (indefinite term) contracts rather than the rate of 7.94% that applies for employees with fixed term contracts. There is no longer a premium rate based on sector.

    Permanent Versus Temporary Contracts
    In the Netherlands, a fixed term contract is a temporary contract because it provides a definite end date. An indefinite term contract is a permanent contract because it applies for an indefinite period of time until the employer or the employee terminates it. Dutch law provides more protection to employees under an indefinite term contract. The reduced UI premium rate is meant to encourage and reward employers that provide more job security to employees.

    Employer Qualifications
    An employer can qualify to pay the lower UI premium rate of 2.94% if any of the following conditions apply:

    • The employee has an employment contract for an indefinite period that was agreed to before 1 January 2020.
    • The employee is younger than age 21 and has been paid a maximum of 48 hours (per reporting period of four weeks) or 52 hours (per reporting period of a calendar month).
    • The employee is a student who follows the Beroeps Begeleidende Leerweg (BBL), the agreement has a date, and the employer has a copy in its records.
    • The employer pays an employee insurance benefit (WW, SW, WIA, WAO, WAZO) as an employer payment or as a deductible.

    Written Employment Contract by 1 April 2020
    The Ministry of Social Affairs and Employment has announced that – so long as the employee was already employed for an indefinite period before 1 January 2020 – employers have until 1 April 2020 to draw up a written employment contract or addendum, get it signed by both parties, and keep a copy in its payroll records.

    Mavanee Anderson, Esq., is Editor of Payroll Information Resources for the American Payroll Association

  • France Reforms Its Unemployment Insurance Program

    by Nic Gonzales | Dec 06, 2019
    As part of President Emmanuel Macron’s push to modernize France’s economy, the country is reforming its unemployment insurance (UI) system. The changes are meant to incentivize employers to hire employees for longer fixed-term contracts (Contrats à Durée Déterminée (CDDs)) and to more permanent positions (Contrats à Durée Indéterminée (CDIs)). The first changes – which relate to former employees – went into effect on 1 November 2019 and relate to the qualifications for receiving UI payments.

    The new UI system, similar to the UI experience rating system in the United States, will be based on the insurance principle that premiums (contribution rates) should be based on the risk involved (unemployment benefits charged to the employer). It has been referred to as a reward-penalty (i.e., bonus-malus) system.

    Affected Employers and Business Sectors
    Effective 1 January 2021 – but based partly on current performance – the changes will affect employers with at least 11 employees, in seven business sectors normally associated with high numbers of short-term contracts and temporary workers. Employers in other business sectors will continue to pay the current contribution rate, which is 4.05% for most employers. After a period of evaluation, the government plans to apply the new system to all employers.

    The seven business sectors are:
    1. Food, beverage, and tobacco product manufacturing
    2. Rubber, plastic, and other non-metallic product manufacturing
    3. Accommodation and catering
    4. Production and distribution of water and sanitation, waste management, and depollution
    5. Transport and storage
    6. Woodworking, printing, and the paper industry
    7. Other specialized, scientific, and technical activities
    Employer Contribution Rates
    Beginning 1 January 2021, employer contribution rates will vary from 3% to 5.05% of payroll based on the employer’s performance during a reference period (i.e., lookback period). Employer contribution rates will continue to be 4.05% for employers that are not within the affected business sectors.

    For employers within the affected sectors, an employer’s separation rate will be the ratio between the annual number of contract terminations and subsequent UI benefit claims compared with the employer’s total number of employees. The employer’s separation rate will be compared with the median separation rate in the employer’s business sector according to the following formula:

    Employer’s contribution rate = "Employer's separation rate" /"Median sector separation rate" x 1.46% + 2.59%

    This means that if the separation rate of an employer is equal to the median rate of its business sector, then its contribution rate will be equal to 1 × 1.46% + 2.59% = 4.05%. The rate cannot be less than 3% nor greater than 5.05%.

    For contributions due in 2021, there will be a two-year lookback period: from 1 January 2019 through 31 December 2020. For contributions due in 2022, there will be a three-year lookback period: from 1 January 2019 through 31 December 2021. For contributions due in subsequent years, there will be a three-year lookback period.

    Flat-Rate Tax for CDDs
    Beginning 1 January 2020, as an additional discouragement of the excessive use of short-term contracts, a flat-rate tax of 10 euros will be charged for each CDD (excluding intermittent worker contracts in the entertainment industry).

    Additional Resources
    Check the Unédic website for additional resources and future updates.

    Mavanee Anderson, Esq., is Editor of Payroll Information Resources for the American Payroll Association.
  • Victoria, Australia, Raises Payroll Tax-Free Threshold and Reduces Regional Payroll Tax Rate

    by Nic Gonzales | Nov 08, 2019
    Employers in Victoria with a wage bill exceeding the tax-free annual threshold of $650,000, which equals a monthly threshold of $54,166, are required to pay a payroll tax of 4.85% of wages. According to the 2019-20 Victorian budget, the annual threshold will increase to $700,000 by 2022-23.

    Even after the increase, Victoria’s annual payroll tax-free threshold is less than the annual thresholds in the other states, which are: Northern Territory ($1.5 million), New South Wales ($900,000), Queensland ($1.3 million), South Australia ($1.5 million), and Western Australia ($850,000).

    Regional Victorian employers
    A lower payroll tax rate applies to taxable wages paid by regional employers to their regional employees. For 2018-19 and 2019-20, the payroll tax rate for regional Victorian employers is 2.425%.

    Over the next three years, the regional payroll tax rate will be reduced to:
    • 2.02%, effective 1 July 2020
    • 1.62%, effective 1 July 2021
    • 1.2125%, effective 1 July 2022
    As of 1 July 2019, a business is a regional employer if it pays at least 85% of its Victorian taxable wages to regional employees (those employees who perform more than 50% of their services within the region of Victoria during the month).

    To qualify as a regional employer, the business also must pay: at least 85% of monthly Victorian taxable wages to regional employees for the purposes of the employer’s monthly returns, and at least 85% of the employer’s Victorian taxable wages to regional employees during a financial year for the purposes of the employer’s annual return.

    Note: It is not necessary for an employer to meet the monthly rate reduction threshold every month during a financial year in order for it to meet the annual rate reduction threshold.

    An employer registered to lodge and pay on a monthly basis must submit wage details every month, even if it does not have a payroll tax liability. Employers self-assess liability on a monthly basis and pay by the seventh day of the following month (or the next business day if it falls on a weekend or holiday).

    All employers must lodge an annual reconciliation by 21 July each year.

    The Victorian State Revenue Office provides additional resources in the payroll tax section of its website.

    Mavanee Anderson, Esq., is Editor of Payroll Information Resources for the American Payroll Association.
  • Employee Compensation Paid in Cryptocurrency Is Subject to Income Tax Withholding in New Zealand

    by Nic Gonzales | Sep 09, 2019
    The New Zealand Commissioner of Inland Revenue has issued a pair of binding rulings (BR) under Section 91D of the Tax Administration Act of 1994 stating that the payment of remuneration to an employee in crypto-assets (e.g., Bitcoin) will be treated as part of the employee's salary or wages and is therefore subject to Pay as You Earn (PAYE) withholding.

    BR Pub 19/01 provides that the payment of remuneration to an employee in crypto-assets as part of the employee's regular remuneration will be treated as part of the employee's salary or wages and is subject to PAYE. In BR Pub 19/02, the Commissioner ruled that the payment of incentives or bonuses in crypto-assets to an employee arising from employment is also subject to PAYE.

    The rulings apply only where the crypto-assets being paid: are not subject to a “lock-up” period; can be converted directly into a fiat currency (on an exchange); and either a significant purpose of the crypto-asset is to function like a currency or the value of the crypto-asset is pegged to one or more fiat currencies. Commentary to the rulings explains that a Fringe Benefits Tax (FBT) applies where it is determined that the payment is not assessable income subject to PAYE withholding. Payments of crypto-assets not subject to PAYE are fringe benefits subject to FBT.

    BR Pubs 19/01 and 19/02 appear in the Inland Revenue Department’s Tax Information Bulletin for August (Issue 7, Vol. 31, August 2019).

    Edward Kowalski, Esq., is Manager of Payroll Information Resources for the American Payroll Association.
  • United States, France Agree on Foreign Tax Credits

    by Nic Gonzales | Aug 09, 2019
    In June, the United States and France reached an understanding that the French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociate (CRDS) taxes are not social taxes covered by the totalization agreement between the countries [IRS Totalization Agreements, French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociate (CRDS)].

    The IRS said it will not challenge foreign tax credits claimed by individual taxpayers, for CSG and CRDS payments on the basis that the totalization agreement applies to those taxes. However, U.S. employers may not file for refunds claiming a foreign tax credit for CSG/CRDS withheld or otherwise paid on behalf of their employees.

    Individual taxpayers have 10 years to file a claim for a refund of U.S. tax for a foreign tax credit. The 10-year period begins the day after the regular due date for filing the return (without extensions) for the year to which the foreign taxes relate. In this case, amended returns claiming foreign tax credits for CSG and CRDS payments going back to tax year 2009 may be filed.

    The United States and France signed a totalization agreement in 1987. Generally under these agreements, a worker who is sent by an employer in one country to work in the other country for five or fewer years remains covered only by the sending country’s social security program. The agreements include additional rules that eliminate dual coverage in other work situations (e.g., airline and maritime workers). The agreement also helps to eliminate situations where workers suffer a loss of benefit rights because they have divided their careers between the two countries.

    Jyme Mariani, Esq., is Managing Editor of Payroll Information Resources for the American Payroll Association.
  • HMRC Warns of U.K. Scam Threatening Fines for Late Payments

    by Nic Gonzales | Jul 11, 2019
    HM Revenue and Customs (HMRC) warned customers about a telephone scam involving threats of fines for late payments after customers have already made these payments [Security Update – HMRC Scam].

    How the Scam Works
    Customers receive a call from a scammer posing as an HMRC agent approximately a week after making their normal payments. The scammer informs them their payment was late, and customers will receive a fine. When customers check and confirm the payment had been made, the scammer says the payment was made to the wrong account. The scammer tells customers to make the payment again to the “correct” account to avoid fines, and the payment will be refunded into their account. The scammer provides beneficiary information to the customer, including a new bank account number and sort code. Customers become aware of the fraudulent activity when their bank flags the suspicious transaction shortly after the second payment is made.

    Reporting HMRC scams
    HMRC has a webpage informing customers how to report suspicious emails, phone calls, and text messages. There are also examples of phishing emails and other scams. Victims of these scams should report them to Action Fraud. To help HMRC investigations, email the full details of the scam to [email protected] (i.e., date of the call, phone number used, and content of the call).

    Jyme Mariani, Esq., is Managing Editor of Payroll Information Resources for the American Payroll Association.
  • Global Vision Award Winner

    by Mark Havelka | May 28, 2019
    The Second recipient of Global Payroll Management Institute’s (GPMI) Global Vision Award winner for 2019 is Kira Rubiano, Head of International Payroll Division and U.S. Operations of Auxadi. Kira’s #Passionforpayroll is exceptional and only equalled by her global payroll knowledge!

    You will see within minutes of listening to this short episode of The Payroll Podcast exactly why she won the prestigious Global Vision Award as Kira’s passion and expertise shines through! We talk about the Global Payroll Management Forum and APA Congress, Kira’s experience of the expo, the countries that cause the most challenges, cross-border payment difficulties, bureaucratic governments, and exactly why people get so confused by global compliance programs.

    This is one episode of the payroll podcast you won’t want to miss and it was a great experience to sit face-to-face with such a worthy and knowledgeable global payroll winner!

    Access the podcast.
     
  • New Income Tax Rates for Wales Effective 6 April 2019

    by Mark Havelka | May 22, 2019

    Beginning in April 2019 the Welsh Government will decide each year the rates of income tax paid by Welsh taxpayers. The Welsh Government could vary the Welsh income tax rates or elect to keep them the same as the rates paid by taxpayers in England and Northern Ireland. On 5 April 2019, HM Revenue and Customs (HMRC) announced the income tax rates for persons living in Wales for the tax year beginning 6 April 2019 [HMRC News Update, 5 April 2019].

    Range of Allowable Adjustments

    From April 2019, the United Kingdom has reduced the three rates of income tax paid by Welsh taxpayers as follows:

    • basic rate from 20% down to 10%
    • higher rate from 40% down to 30%
    • additional rate from 45% down to 35%
    It was up to the Welsh government to decide the Welsh rates of income tax that would be added to the reduced U.K. tax rates. Ministers are able to adjust the income tax rate by 10 pence for every one pound (10%) for each rate. Moreover, 10 pence per pound in each rate (10%) will go directly to the Welsh Treasury to be spent on public services in Wales, rather than coming to Wales through the U.K. government.

    Rates for 2019 to 2020

    Wales decided that income tax rates are staying the same for 2019-2020. This means that the basic rate in Wales remains at 20%, with 10% going to the U.K. and 10% going to Wales. At the higher rate of 40%, 30% will go to the U.K. and 10% to Wales. If the additional rate of 45% applies, 35% will go to the U.K. and 10% to Wales.

    The rates of tax on dividends and savings interest are the same for those living in Wales as they are for the rest of the U.K.

    Persons Subject to the Welsh Rates

    Persons living in Wales will be paying the Welsh rates. Persons moving to or from Wales will only pay Welsh rates if they live in Wales longer than anywhere else in the U.K. during a tax year, which starts on 6 April and runs through 5 April in the following year.

    Collection of the Tax

    HMRC will continue to collect income tax from Welsh residents through the Pay as You Earn (PAYE) system. HMRC will add a C to the start of the tax code for residents of Wales so that the correct rates of income tax will be paid.

    Beginning in April 2019 the Welsh Government will decide each year the rates of income tax paid by Welsh taxpayers. The Welsh Government could vary the Welsh income tax rates or elect to keep them the same as the rates paid by taxpayers in England and Northern Ireland. On 5 April 2019, HM Revenue and Customs (HMRC) announced the income tax rates for persons living in Wales for the tax year beginning 6 April 2019 [HMRC News Update, 5 April 2019].

    Range of Allowable Adjustments

    From April 2019, the United Kingdom has reduced the three rates of income tax paid by Welsh taxpayers as follows:

    • basic rate from 20% down to 10%
    • higher rate from 40% down to 30%
    • additional rate from 45% down to 35%
    It was up to the Welsh government to decide the Welsh rates of income tax that would be added to the reduced U.K. tax rates. Ministers are able to adjust the income tax rate by 10 pence for every one pound (10%) for each rate. Moreover, 10 pence per pound in each rate (10%) will go directly to the Welsh Treasury to be spent on public services in Wales, rather than coming to Wales through the U.K. government.

    Rates for 2019 to 2020

    Wales decided that income tax rates are staying the same for 2019-2020. This means that the basic rate in Wales remains at 20%, with 10% going to the U.K. and 10% going to Wales. At the higher rate of 40%, 30% will go to the U.K. and 10% to Wales. If the additional rate of 45% applies, 35% will go to the U.K. and 10% to Wales.

    The rates of tax on dividends and savings interest are the same for those living in Wales as they are for the rest of the U.K.

    Persons Subject to the Welsh Rates

    Persons living in Wales will be paying the Welsh rates. Persons moving to or from Wales will only pay Welsh rates if they live in Wales longer than anywhere else in the U.K. during a tax year, which starts on 6 April and runs through 5 April in the following year.

    Collection of the Tax

    HMRC will continue to collect income tax from Welsh residents through the Pay as You Earn (PAYE) system. HMRC will add a C to the start of the tax code for residents of Wales so that the correct rates of income tax will be paid.

    Edward Kowalski, Esq., is Manager of Payroll Information Resources for the American Payroll Association.
  • U.K. Double Taxation Treaty Plans for 2019

    by Mark Havelka | Apr 09, 2019
    HM Revenue and Customs (HMRC) has announced the details of the U.K.’s treaty negotiating priorities for 2019. This year, HMRC will begin negotiations on double taxation treaties with New Zealand, Peru, and Sri Lanka. The tax agency will also continue double taxation treaty discussions with 11 other countries [HMRC, Policy Paper, Planned Negotiations on Double Taxation Agreements for 2019, 4 March 2019].

    Double taxation treaties
    A double taxation treaty is an agreement designed to protect against the risk of double taxation where the same income for a business or individual is taxable in both countries. The U.K. maintains a list of current tax treaties with other countries and regions. This website contains details about the agreements along with the actual agreements and any amendments made to them.

    Discussions with New Zealand, other countries
    HMRC plans to enter into discussions with many countries and regions to update its double taxation treaties. HMRC plans to begin negotiations with three countries: New Zealand, Peru, and Sri Lanka. HMRC will also continue discussions on double taxation treaties with 11 countries: Costa Rica, Ghana, Greece, Kazakhstan, Lebanon, Luxembourg, Malawi, Nepal, Portugual, Romania, and Russia.

    Since 1 January 2018, HMRC has signed new agreements and many have entered into force. There are new agreements with four countries: Austria, Cyprus, Israel, and Mauritius, and three crown dependencies: Guernsey, Jersey, and the Isle of Man. The following agreements have entered into force: Austria, Australia, Belarus, Cyprus, Guernsey, Isle of Man, Jersey, Lesotho, Mauritius, and Uzbekistan.

    Laura Lough, Esq., is Director of Publications for the American Payroll Association.
  • Introducing the Deloitte Payroll Benchmarking Survey 2019

    by Nic Gonzales | Apr 03, 2019

    What?
    Deloitte, the APA and the Global Payroll Management Institute (GPMI) are excited to announce our collaboration on providing the most robust and comprehensive payroll benchmarking survey in the market. The survey, Deloitte Payroll Benchmarking Survey 2019, will be driven by Deloitte and solely sponsored by the APA and the GPMI.

    Why?
    The survey will provide insights into your payroll operations, as well as the operations of your peer organizations, whether domestic or global, helping you to make actionable decisions that improve employee experience, compliance, accuracy, efficiency and enabling technology. The future of the enterprise, the workforce and how work gets done is changing quicker than most organizations can keep up, and the payroll function is not immune. As enabling technology advances in areas such as robotic process automation, artificial intelligence, machine learning and social collaboration, it provides organizations with a unique opportunity to transform its operations, leveraging these next generation technologies. Insight into other payroll functions can be extremely valuable in informing and guiding your own organization’s efforts.

    When?
    The survey will be introduced at the 2019 37th Annual Congress, in Long Beach, California, and reviewed in detail during our break out session on Thursday May 16th from 2:15 p.m. to 3:45 p.m. If you are considering taking the survey or simply want to hear more about it and how it can be used to help improve your payroll operations, be sure to sign up. You can also stop by Deloitte’s booth (Booth #720) and meet members of the Deloitte payroll leadership team.

    After Congress, you will have 2 weeks to prepare before the opening of the survey on June 3rd. This survey opens on June 3 and will close on September 20. The results will be provided back to all who participated in late fall 2019. Once results are published, Deloitte will hold a series of webinars to present our key findings and insights.

    To Sign-up?
    Sign up now to receive the survey when it is opened on June 3rd.

    For additional information on Deloitte’s Global Payroll Capabilities please visit our HR Transformation Practice website.

  • Australia Expands Single Touch Payroll – Will There Be Implications for State/Territory Payroll Taxes?

    by Nic Gonzales | Mar 28, 2019
    Beginning 1 July 2019, Single Touch Payroll (STP) in Australia is being extended to small employers with 19 or less employees. This was subject to legislation, which was enacted in February. The STP expansion could lead to a focus on state and territory payroll taxes for all employers [Australian Tax Office, News Release, 8 March 2019].

    STP began last year
    STP went into effect 1 July 2018 for large employers (20 or more employees). It is a government initiative requiring employers to report all payments, pay-as-you-go (PAYG) tax, and superannuation information to the Australian Tax Office (ATO) at the same time the employees are paid from their payroll solution. Additionally, there is a requirement to provide new employee details to the ATO before employees are paid. See the GPMI news release, Single Touch Payroll in Australia Coming July 2018.

    There will be a three-month transition period for small employers. They can start STP reporting any time from 1 July – 30 September. “This is a gradual transition, and we are providing flexible options,” says the ATO. “If you’re an employer with four or less employees you will have additional options.”

    State and territory payroll taxes
    Interestingly, the STP change for small employers could lead to a focus on state and territory payroll taxes for all employers. These taxes are assessed on employee wages when the total bill of an employer (or group of employers) exceeds a threshold amount. It is payable in the Australian state or territory where the services were performed. Each state or territory has a different tax rate and threshold as well as registration process. Payroll taxes are paid to the state and territory revenue offices (on a monthly, quarterly, or annual basis).

    There is a perception that many small businesses are simply not aware of state and territory payroll taxes. Even for large employers in Australia, payroll taxes can be complicated and may require payroll departments to work closely with their accounting and tax groups to make sure they are in compliance.

    Laura Lough, Esq., is Director of Publications for the American Payroll Association.
  • Launch of the First APAC Chapter of the Global Payroll Management Institute in Pune, India

    by Nic Gonzales | Mar 14, 2019
    Neeyamo is pleased to announce its association with the Global Payroll Management Institute (GPMI) in launching its maiden chapter in the APAC region. The launch took place at Neeyamo's Global Delivery Center in Pune on Feb. 26, 2019. The chapter had representative members from payroll practitioners including CHROs, CFOs, leaders among the global payroll fraternity and several other interested parties. The voluntary body is geared to share best practices in global payroll, and further provide a platform for its members to network.

    As its first overseas venture, the GPMI India Chapter aims to propagate knowledge on Global Payroll for payroll professionals in India. The chapter will act as a forum for the payroll community to open up windows of opportunity for professionals to network, learn about newer developments in the field, share their knowledge & insights, discuss and identify common payroll barriers across industries and seek resolutions.

    Dan Maddux, Executive Director, American Payroll Association said, "All of us at the Global Payroll Management Institute are ecstatic to have launched our first Chapter in the APAC region of the world. The official launch of the GPMI India Chapter is a significant milestone, as local Chapters are the heart and soul of professional organizations and we are thrilled that payroll professionals in India will reap the benefits of Chapter collaboration. Together, we will share and support the common goals of expanding global payroll knowledge and education to GPMI affiliates throughout India and the world."

    Mary Holland, Global Director Strategy, Development and Training said, "I'm excited to work with the first GPMI chapter in India. I'm confident we will create a community where global payroll professionals can increase their knowledge, network with peers from around the world, and enhance their global payroll career."

    Ranga Seshadri, CEO at Neeyamo and President of the India Chapter said, "It gives me immense pleasure to be joining hands with Global Payroll Management Institute in this initiative. It is going to be our constant endeavor to forefront initiatives that bring transformation in the payroll arena opening up windows of opportunity for professionals to network, learn about newer developments in the field, share their knowledge & insights, discuss and identify common payroll barriers across industries and seek resolutions."