Seeing the updates to Indigo Payroll with 2020 vision
December 30, 2019
Can you believe it? It’s 2020!
We want to walk you through the changes you can expect to see in your Indigo Payroll system after early Indigo updates in the new year, planned for early January 2020. Our team has prepared everything you need to handle payrolls this year according to the 2020 budget changes.
Here’s a rundown of the relevant 2020 budget changes that affect Indigo and how we addressed these changes:
|2020 budget measure||How Indigo addresses this|
|The new taxation rate for the first 100 hours overtime of the year for workers earning less than €20,000 and not in managerial positions.|
|An additional day of leave for employees, raising the total amount of leave per year to 27 days.||Your Indigo system now has the standard leave entitlements and public holiday dates for 2020 ready to use.|
|SSC and short-term benefits updated.||Indigo has the new rates for 2020 ready in your system.|
No need to spend overtime calculating overtime in Indigo
Worried about handling the new overtime taxation rate in Indigo? Don’t worry, we’ve handled it for you!
We’ve created a new support file called the pay item taxation profile to accommodate the new tax rates for overtime concessions.
When Indigo updates in 2020, you will find that overtime pay items (up to double-time) will be linked to the new pay item taxation profile titled OT_Concessions in the Pay Items page.
Remember, this data will be ready for you automatically so that you can focus on running your payrolls as normal without any stress towards the 2020 budget changes.
Easily manage overtime concessions in Indigo
A key measure in the 2020 budget plan is to decrease the tax rate on overtime work. This year, the taxation on the first 100 hours of overtime in the year is lowered to 15 percent for those whose basic salary does not exceed €20,000. This does not apply to workers in a managerial position.
We have added a new checkbox in the employee profile page so you can exempt managers and employees earning over €20,000 per year at the click of a button.
The Overtime concession opt-out button is found in the Employee Details section of an employee’s profile. Check this box to remove the application of the new taxation rate on overtime from an employee in a managerial position. By default, all active employees in your system are opted-in.
The 15 percent tax rate and 100 hour cap is already updated to overtime pay items in your system. Indigo will automatically apply the rate to the first 100 hours of overtime worked and not to the subsequent hours.
Calculations for overtime tax will be shown on employee payslips, cheques, and in detailed payroll reports.
Payslips and cheques generated in Indigo for 2020 will contain fields such as OT Concession Hours, Tax (OT Concessions) and the total hours of overtime concessions.
We’ve updated detailed payroll reports to help you stay informed on overtime concessions for employees benefiting from the new overtime taxation rate. Now when you run such a report, you will find new columns to provide information on the gross amount, tax amount, and hours of overtime concessions.
Rates adjusted and ready for 2020
The new rates for social security contributions (SSCs) and short-term benefits are updated in Indigo Payroll.
To the best of our knowledge, any rates mentioned in this blog are correct for the payroll year 2020 at the date of publication. We strongly recommend that you confirm these rates with the relevant authorities before calculating any payrolls.
The government also raised cost of living allowance (COLA) rates to €3.49 per week. We have a handy tool to help apply this new rate to all or select employees at one time.
Additional day of leave
All of us need “a day” to ourselves, and, thanks to the Government’s 2020 budget announcement, we now have 27 of these days. We’ve added the standard leave entitlements for 2020 in your system already.
Providing leave entitlements in Indigo is easy, and it can be done globally to all employees at once or to individual employees as needed.