On Monday 10th August 2020, the Commissioner for Revenue informed employers that the FSS forms have been updated to reflect changes brought about by the Tax on Overtime Rules and the COVID-19 Wage Supplement (CWS). You can read more about this here.
It is advised to set the director's fee for either the adjustment or basic pay salary pay items. You can copy and paste either pay item type from the Pay Items page, and then rename the code and description of the pay item before tagging it as a director's fee.
The adjustment pay item ought to be subject to FSS and reported as gross. The basic pay salary pay item ought to be subject to SSC and FSS and reported as gross.
To create a director's fee pay item:
- Go to the Pay Items page of Indigo.
- Create or copy and paste either an adjustment or a basic pay salary pay item.
- Set the pay item's code and description to something relevant to director's fees. For example, DIRFEES and Director's Fee, respectively.
- Tick the Is Director's Fee box under Options (in addition to other options pertinent to adjustment or basic pay salary pay items).
- Click on Save in the functions bar.
Below is an example of an adjustment pay item as a director's fee.
Below is an example of a basic pay salary pay item as a director's fee.
When these pay items are used, all official FSS Documents (FS3, FS5, FS7) and Electronic Lodgement will have the amount shown in the Director's Fees section.