In a pickle

ShaneOCal · 07-01-2023 1:05pm #1

There's a lot to digest here so I'll try be as succinct as possible.

Our father died in November. He was a sole trader with three part-time staff on the payroll.

We've kept on a number of contracts under a new trading name. Only two of the staff were ever paying tax.

Since mid-November, the staff have still been getting paid but it's been off payroll - no payslips.

There's no malicious intent here. It's just in order for the contracts to continue, the staff had to keep getting paid and between running the business, planning a funeral and juggling our own careers, we had to prioritise.

And figuring out how to pay the staff properly was, perhaps foolishly, less of a priority than the others.

My question is can we go back and look at every fortnightly payment since mid-November and fix it now? One of the staff is beginning to ask questions and we want to be able to fix this for him.

We'll be meeting the accountant soon but we also don't want to look like the amateurs that we are when meeting him again, so any guidance from you guys would be hugely appreciated.

Thanks for your time.

Deeec · 07-01-2023 1:12pm

Condolences on the death of your dad . Yes this can be done but needs to be acted on quickly. You should have been filing the wages with revenue when paid to the employee but you were placed in a difficult situation. Who done payroll for your dad - they will be able to sort this out easily.

ShaneOCal · 07-01-2023 1:16pm

Thank you Deec. When you say 'acted on quickly' do you mean for convenience or legal purposes? Obviously the longer it goes, the more of a mess it is for the accountant, who did the wages under my dad's business so he'll continue to assist.

We just don't want to get him involved in anything which accidentally borders on criminality or something. As I said, we have six weeks experience of running a business that started 37 years ago, so teething problems are inevitable.

But if you think it's a relatively straightforward fix then happy days.

Deeec · 07-01-2023 1:25pm

https://www.boards.ie/discussion/comment/120078096#Comment_120078096

It's late from a legal point of view - The day you pay an employees wages you are meant to notify revenue of this - its is as simple as clicking a button on a payroll system. The employees may also want to claim refunds etc from revenue as the tax year ended on the 31st Dec and can't do so as their wages are not filed with revenue.

Honestly speak to the accountant on Monday and they will sort it out easily and give you guidance for future payments. Nothing criminal has happened but you could find yourself in trouble if you put this in the long finger. You will also have very annoyed employees. It really is easy to sort out for your accountant so get on to them asap.

ShaneOCal · 07-01-2023 1:42pm

Is that Bright Pay, the payroll system? He has that system for my dad so hopefully he can take all the information over and just apply it to the new trading name.

Two of the staff are at an AO PRSI class and that seems less confusing in terms of deductions so hopefully it's a simple fix as you say.

nhg · 08-01-2023 7:58am

The new trading name will need to be registered as an employer.

The employments will need to be ceased with the old employment & registered under the new employment. This should all be done by the employer not the employees.

It’s only the 1st ever employment that an employee should register themselves to activate their rate band, usc & tax credits.

Get this sorted asap as the annual rate band, USC and tax credits have increased for 2023 following the budget changes, this will mean that the employees take home pay will differ from 2022’s take home pay.

In a pickle

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