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Foreign organisations employing people in Ireland must take care to fulfil their tax compliance obligations. Siobhán O’Hea outlines what they need to know As remote working becomes popular, employees are no longer obliged to work at their employer's premises or even in the same country. This presents opportunities for employers, but also challenges. As such, there are payroll tax compliance obligations for foreign employers with employees working in Ireland under a foreign contract of employment (inbound workers). This can occur where: an employee relocates to Ireland; or an employer sends an employee to Ireland for a short period to fulfil part of a contract. All foreign employers must register as an employer in Ireland and operate Irish payroll taxes on any salary attributable to employment duties carried out in Ireland by their employees. This applies even if the employer does not have a business premises, or employees work from home in Ireland. It applies irrespective of their tax residence status. There are a few exceptions to this rule. Business visits of up to 30 workdays in a year A foreign employer need not operate Irish payroll taxes on the salary of an employee employed under a foreign contract of employment who carries out the duties of that employment in Ireland for no more than 30 workdays in aggregate in any year. If the employee exceeds the 30-workday threshold and is obliged to operate Irish payroll taxes, the employer must operate Irish payroll taxes from the employee's first workday in Ireland. Business visits greater than 30 workdays and not more than 60 workdays per year A foreign employer can rely on this exemption when an employee who is employed under a foreign contract of employment visits Ireland and is a resident of a country with which Ireland has a Double Taxation Agreement. In addition, the Double Taxation Agreement between Ireland and the employee's country of residence must relieve the employment income from the charge to Irish tax. Not all Double Taxation Agreements are the same. Foreign employers wishing to rely on this exemption should carefully examine the relevant agreement's wording to establish if their employee's employment income is relieved from the charge to Irish tax. Where the employment income of the employee is not relieved from the charge to Irish tax under the Double Taxation Agreement or where the workdays in Ireland exceed 60, and there is no PAYE dispensation in place, the employer must operate Irish payroll taxes from the employee's first workday in Ireland. Business visits greater than 60 workdays and not more than 183 days per year The conditions for this exemption are the same as those for business visits between 30 and 60 workdays. However, in addition, a foreign employer must apply to the Irish Revenue authorities for a dispensation from the requirement to operate Irish payroll taxes on the employee's salary. There are several conditions to be satisfied before the Revenue authorities will grant a foreign employer the dispensation: i. The foreign employer must register as an employer in Ireland; and ii. The foreign employer must apply in writing to Irish Revenue for the dispensation giving the employer's full name, address, Irish employer's registration number and confirmation that the relevant Double Taxation Agreement relieves the employment income from the charge to Irish tax. The application for a dispensation must be made within 30 days of the foreign employee starting to carry out their employment duties in Ireland. It can cover more than one employee, but a new application must be made annually. Where an application for a dispensation is not sought within 30 days of the employee taking up duties in Ireland, Irish payroll taxes must be operated on any salary paid to the foreign employee from the date the employee takes up duties in Ireland. If Revenue refuses to grant a dispensation, Irish payroll taxes should be based on salary in respect of all workdays spent in Ireland in the year. Where a foreign employer must operate Irish payroll taxes on an employee's salary, Irish social security contributions (PRSI) are also due unless there is a valid certificate of coverage or exemption in place. In addition, depending on the number of employees the employer has in Ireland, and the type of duties they carry out, the presence of an employee in Ireland may create a "permanent establishment" of the employer in Ireland. If an employer has a branch or permanent establishment in Ireland, it may be obliged to pay Irish corporation tax on the profits of that branch. Siobhán O’Hea is Partner of Tax Services at CrowleysDFK

Work to achieve parity in the workplace is often assigned to women, but research shows that when men advocate for equity, everyone wins, says Andrea Dermody Gender equality issues are nothing new in the boardroom. Grant Thornton’s 2022 report Women in Business: Opening the door to diverse talent revealed that just 33 percent of senior leaders globally are female. Time and again, research shows that the more diverse a company, the better its performance. So perhaps it’s time to shift the focus and consider how men can play their part in the pursuit of parity. Men as allies Too many organisations still miss the mark on gender balance efforts by focusing gender initiatives solely on what women can do to level the playing field—or, at best, inviting men to attend diversity and inclusion events designed for women. An alternative drive towards ‘allyship’ is, however, steadily gaining pace. For men, this is about acknowledging and using their privilege to help others. When they do, they can help to share knowledge, break down barriers, and promote equal access. Why allyship matters Notably, the more women occupying a seat in a company’s C-suite and corporate board, the better its sustainability, corporate social responsibility, and business performance. With this in mind, having men as allies should be a business imperative. Empowering men is one pathway towards allyship. Male allies can help advocate for women’s voices to be heard, and that commitments to equity and inclusion are taken seriously. But believing in the cause is only part of the equation. Men must actively work to achieve it.  Grant Thornton’s 2022 research suggests male allies can support progress towards gender parity among senior leadership in several impactful ways, from exerting influence to change behaviours in their circles to facing down sexist behaviour and supporting and encouraging female colleagues. The result is reciprocal reward. The business performs better, and male allies experience personal growth, broaden their network, and, most importantly, experience the associated benefits of a unified, energised and collaborative team. Allyship is a verb, not a noun For men, the message is clear: you must take action. W. Brad Johnson and David G. Smith, authors of Good Guys: How Men Can Be Better Allies for Women in the Workplace, offer five ‘rules to live by’ for men who aspire to better ally behaviour in the service of promoting tangible gender equity in the workplace: Allyship is a journey, not a destination. Nobody ever “arrives” as an ally. Allyship is with, not for. Make your ally actions collaborative.  Allyship perpetuates autonomy, not dependence. You must hold yourself accountable for the net outcome of your ally behaviour. Allyship is about decentring, not standing in the spotlight. Speak less, hand the mic to women with key expertise, and structure projects, so women gain credit.  Allyship is critical to improving the status quo. Examine longstanding practices that perpetuate systemic inequities. Overcoming barriers  Allyship is growing trend, as is training in this area, but there is a gender gap in the perception of what success here means. Research shows that women and other underrepresented groups see less evidence of measurable workplace change than men. In short, men are essentially worse allies than they think. In this no-holds-barred report released in 2018 by the Harvard Business Review, the authors also suggest there can be a cost to men who act as allies. The authors describe the ‘wimp penalty’ of allyship, where men who advocate for female colleagues are seen as less competent by both men and women.  Finding the balance Barriers aside, it’s clear from the evidence that progress towards gender balance in senior leadership is accelerated when men act as allies. The more positive interactions men have with women in professional settings, the less prejudice and exclusion they tend to demonstrate. Here are some practical suggestions for closing the allyship gap: Make allyship an organisational value and priority: ensure senior leaders can talk clearly about the importance of allyship as it connects to core business outcomes, demonstrating how they value it personally and in their business. Listen and collaborate: demonstrate generous listening, show that you understand, and take meaningful action. Move from awareness to action: consider actions and techniques to overcome, challenge, disrupt, and prevent these behaviours and inequities. Create a community of allies who share and grow: allyship is not a ‘one-and-done’ process. Allow your communities to continue to learn and develop the skills they need to support the women in your organisation. There is a role for allyship to play in gender parity efforts. Ensuring that men are given a dignified, respectful role in becoming allies will bring wide-ranging benefits associated with a truly inclusive team. And then everyone wins. Andrea Dermody is a diversity and inclusion consultant, speaker and coach at Dermody

By embracing positive ways of working, leaders can create the space, trust and flexibility to face any challenge that might lie ahead. Kevin Empey explains why As the worst of the pandemic recedes, there is no doubt that future of work topics in play before 2020 have accelerated up the agenda. In 2023, we are all talking more about digitalisation, environment, social and governance (ESG), future skills and talent concerns. Topping the list, however, is future work strategy and how it informs an organisation's short-to medium-term business plans and approach to people management. Good leaders are bringing their teams into new ways of working while promoting trust, flexibility and the bottom line. Pick your strategy While labels serve a purpose, it is time to transition from terms like 'hybrid', 'agile', 'blended' or 'smart' to just 'ways of working'. Organisations are moving from the uncertain 'getting started' experiences of the past two years to the more confident and assured 'up and running' phase in 2023.  Now, every part of the organisation must look at how their way of working serves the wider business strategy and team performance. For example: Executive teams Buoyed by the experiences of the last few years, executive teams should reflect on their leadership habits, behaviours and ways of working, how they collectively and individually show up together and with their teams, and role model what high-performance teamwork looks like for others.    Management Managers should empower their teams by providing purpose, clarity, energy and freedom to develop ways of working that deliver results, achieving the balance between flexibility and accountability. Human resources HR teams must adopt new ways of working to embrace their expanded mandate, co-creating solutions with their business colleagues and taking their rightful place as enablers of flexibility, talent, and people-led performance. Employees Individuals should be supported and provided with the skills they need to thrive and confidently navigate the future of work and the changing demands of modern working life. Let go of old hang-ups Given our experience over the last few years, it's clear that it is now time to move on from the debate surrounding hybrid working.  Flexible working in various forms is here to stay, informed by different influences on working styles, such as agile. The societal need and demand for flexibility in how and where we work, and the capability to deliver it, was already a big issue in the world of work well before 2020. Now, it is time for organisations to embrace it. Leaders should focus on their team's flexibility instead of clinging to outdated and rigid ways of working. The next phase of work By creating positive ways of working at a team and individual level, we not only achieve great results and a positive work experience but also provide the space, trust and flexibility to take on whatever challenges (and opportunities) might lie ahead.  Let's move on and positively shape the next phase in the world of work. Kevin Empey is the Founder of WorkMatters

Paul O'Donnell highlights fours competencies that will be key to successful leadership in the future Leaders are facing a complex mix of new challenges. Hiring, engaging and retaining remote employees, addressing the opportunities and risks of a new work model and the uncertainty created by geopolitical turbulence, economic headwinds and pandemic lag. The rapid pace of change and the need for quick responses mean leaders must develop new cognitive abilities and traits to thrive. Here are four competencies that will be essential for future leaders. 1. Let go of unconscious biases Aside from the moral imperative, the business case for diversity, equity and inclusion (DE&I) is compelling. Successive McKinsey studies demonstrate that organisations with well-developed systems to support inclusion are more likely to outperform financially. Leaders must be authentic in their efforts to build diverse teams. The best leaders understand the need to shape a culture that encourages all team members to flourish. They actively seek out the higher-order thinking that comes from having differing perspectives around the table, and draw on this for a competitive edge. 2. Collaborative instinct Strong leaders demonstrate collaboration as a first response when working with a peer group and their team. True collaboration arises from a trust-centred approach to team engagement. This often requires the leader to check their behaviour to ensure their drive and ego are not obstacles to team empowerment. Leaders can shape team culture in order to make sure that introverts feel safe to speak up, and extroverts know when to hold back. In many ways, leadership becomes a devolved process where team members lead tasks and projects at the peer level. 3. Understanding values Organisational values come from how leaders behave and the decisions they make. These values determine whether talent will stay with an organisation or leave to join a competing business whose leadership values match their own. Leaders must demonstrate organisational values in all of their decision-making and place values at the centre of hiring decisions. Of equal importance is the leader's application of values in decisions made regarding clients, internal or external. This determines employee behaviours and the customer's experience. 4. Connecting with employees Where previous HR advice may have been to focus only on the nine-to-five of the employer/employee relationship, the future of leadership will be different. With hybrid working, we have invited our work, colleagues and leaders into our homes. Our working lives are now more intertwined with our home and personal lives. There can be little doubt that younger generations expect their employers to consider (and accommodate) them in a more holistic manner when making decisions about them, their work and their careers. Leaders should understand what matters personally and professionally to each of their team members. They should keep in touch on issues that arise and provide flexibility and accommodations where needed. Paul O'Donnell is the CEO of HRM Search Partners

Total reward strategies have featured in talent retention strategies for years, but ‘total wellness’ can deliver better results. Louise Shannon explains why In the new world of work and value creation, total reward strategies are focusing more and more on enhancing employee wellness—from the physical, emotional and mental, to social, career and financial management. The resulting people, business and societal outcomes can help organisations to get a better return on their reward investment and deliver more value for their people. A new approach to total reward Historically, the total reward approach provided employees with a blend of monetary and non-monetary rewards using a traditional ‘top-down’ mechanism. In the future, we expect to see a more personalised, bottom-up approach that uses total reward to deliver total wellness. This new approach will bridge the gap between employee preferences and the total reward offering, placing the individual at the centre of a reframed, broader and more flexible approach to the reward equation. It will align reward to physical, emotional, mental, social, career and financial wellness, underpinned by a positive employee experience. This will leverage a company’s culture and leadership, enabling organisations to attract, engage and retain top talent. Financial rewards will always be essential, but employers will need to do more to align non-financial rewards with employee preferences and needs at an individual level. Employees will require a list of options reflecting an understanding of their personal wellness needs. Here are five key questions leading organisations should ask themselves: Does our total reward strategy promote the total wellness of each employee? Does it deliver total wellness that enhances workforce productivity? Are we considering employee preferences in our total reward decisions? Are we effectively engaging and retaining our top talent? What is the return on our reward investment? There are several steps leaders can take to implement and promote total wellness in their organisations. Continually ask and listen Listen to employees so that you can fully understand their preferences and be flexible in your approach. Individual preferences will change over time, so you need a reward offering that evolves to suit the changing needs of employees. Review on an ongoing basis Review and assess your existing total reward offering, focusing on the six elements of total wellness—physical, emotional, mental, social, career and financial. Respond to and fill gaps in your offering where needed. Create a reward roadmap Total wellness cannot exist without planning and strategy. Create a roadmap for change based on your organisation’s desired vision and get buy-in from leadership to make it happen. The benefits are clear. Investing in total wellness can improve trust, retention and productivity. Taking the time to get it right is crucial. Louise Shannon is Senior Manager, People and Organisation, PwC Ireland

The benefits of AI extend across all business functions, but its potential for the finance function is especially striking, writes Paul Tully Organisations are investing in artificial intelligence (AI) to improve efficiency, reduce operating costs, and open up new business opportunities. From smart map apps and fuel consumption optimisation, to sophisticated financial tools for fraud detection, AI is becoming embedded in businesses in every sector. The question for those looking to harness the power of AI in the best way possible, is whether to build, buy, outsource the technology, or utilise a combination of all three. At a high level, AI is used to unlock the power of data to deliver better predictive and analytics capability. The technology can explore “what if” scenarios and offer insights into competitive threats and market opportunities that might arise in the future. The opportunities extend across all business functions, but the potential benefits for the finance function are especially striking. AI benefits for CFOs A growing number of CFOs are using AI to address changes to accounting regulations. We have seen large companies save manpower by using natural language processing (NLP) to review lease contracts, for example. Without AI, this would be a labour-intensive process. CFOs also need to balance the delivery and growth of performance targets, while ensuring compliance with legal and accounting regulations. AI offers enhanced insights that can support strategic decision-making in asset valuation, predicting future customer trends, and identifying market growth opportunities through predictive modelling. The ability to create fraud detection processes leveraging AI, can also help CFOs to create a robust control environment and manage risk more effectively. Options here include mechanisms that recognise suspicious behaviour and classify alerts as high, medium or lower risk. Finance operations and control Perhaps no part of any enterprise has as many repetitive, routine tasks as the finance department. Inputting invoices, tracking receivables, and logging payment transactions are high-cost, low-return activities, and not of high interest to employees. AI can increase efficiency by automating manual people-intensive finance processes, such as the order-to-cash cycle, helping to predict customer debts and improve working capital management. Accurate, timely and consistent data, generated automatically, can help finance teams to add value to their organisation, leveraging customer behaviour modelling to identify opportunities to grow margins, while also forecasting with speed and accuracy. Furthermore, using AI to analyse internal financial control points and improve fraud detection can create a more robust reporting environment. Banks and other financial services organisations are leaders in establishing or acquiring their own AI capability. This is unsurprising given the cost and regulatory challenges facing the sector. They are using the technology in customer support, automated loan approval processes, “self-repairing” mobile banking apps, and payment optimisation. They also use AI for automated fraud detection, anti-money laundering checks, customer portfolio management, electronic trading, and property market intelligence. Third-party solution business Professional services firms are leading the field in developing third-party AI solutions for clients. These range from bespoke solutions for individual clients to more general products in areas such as automated insurance claims processing, regulatory compliance checking, HR support, and the use of machine vision to monitor automated production lines. Third-party solutions are not confined to the professional services sector, or the broader technology and software services industry. Organisations with well-established AI capabilities are making their solutions available on the open market as an additional business line. Paul Tully is Head of Finance Analytics at EY Ireland AI Labs