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The following are budget changes that directly affect payroll processing and payroll software development.

Employee PRSI

  • Introduction of a PRSI relief of a maximum of €12 per week.
  • Relief commences at income of €352.01 per week, and tapers out at a rate of one-sixth of income in excess of this threshold.
  • Relief fully tapers out as income reaches €424 per week.

Employer PRSI

  • Increase from €356.01 to €376.01 in the weekly threshold at which liability to employer’s PRSI increases from 8.5% to 10.75% on all earnings

USC Changes 

  • Incomes of €13,000 or less are exempt.
  • Otherwise, €0 to €12,012 @ 1%
  • €12,013 to €18,668 @ 3%
  • €18,669 to €70,044 @ 5.5%
  • €70,045 to €100,000 @ 8%
  • PAYE income in excess of €100,000 @ 8%
  • Self-employed income in excess of €100,000 @ 11%
  • Medical card holders and individuals aged 70 years and over whose aggregate income does not exceed €60,000 will now pay a maximum rate of 3% USC

Other items to be aware of in relation to queries from employees:

Income Tax / PAYE

  • An increase in the Home Carer Tax Credit from €810 to €1,000, and increase in the home carer’s income threshold from €5,080 to €7,200.
  • Introduction of an Earned Income Credit of €550 to be available to taxpayers earning self-employed trading or professional income and to business owner/managers who are ineligible for a PAYE credit on their salary income

Minimum Wage

Increase from €8.65 to €9.15 from January 2016

State Pension

The state contributory pension has increase by €3 per week which needs to be taken into account if offsetting against private pensions contributions.

Non- Payroll Related Items

For ALL other taxation changes including excise, CGT, CAT, Corporation Tax, and others, see the official government document  published on the governments Budget website.

(Source: – Official Publication)

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All the best,
The Team at Jefferson

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