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: Budget.gov.ie – Official Publication)
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All the best,
The Team at Jefferson
