Budget 2011 – Irish Payroll USC Clarification
The €4,004 yearly exemption is to be applied for to the Revenue only at the end of the year. It is not to be broken down into weekly/monthly/etc equivalents to be applied in weekly/monthly/etc payroll. This is different to the Income Levy where the €15,028 was broken down and applied weekly/monthly/etc. Throughout the year the only thresholds/rates to be applied in payroll are €10,036 @ 2%, the next €5,980 @ 4% and the balance at 7%. Folks aged 70 or over pay a max of 4%, starting above €10,036. This exemption it has to be applied for at year […]
Budget 2011 – Emergency Tax Credits and Bands
With the revised tax credits and Cut Offs for Irish payroll for 2011, when calculating tax on an emergency basis the credits and cut offs are as followsWhere employee does not provide a PPS Number
Weekly Paid
Weeks 1 – 4 CutOff Point €631 Weekly Tax Credit €32
Weeks 5 – 8 CutOff Point €631 Weekly Tax Credit nil
Week 9 onwards CutOff Point nil Weekly Tax Credit nil
Monthly Paid
Month 1 CutOff Point €2,734 Monthly Tax Credit €138
Month 2 CutOff Point €2,734 Monthly Tax Credit nil
Month 3 onwards CutOff Point nil Monthly Tax Credit nil
Where an employee does not provide a PPS number
The […]
Budget 2011 – Pension changes
Pension changes for Irish payroll introduced in Budget 2011
Employee PRSI on pension contributions
From 1 January 2011, employee contributions to occupational pension schemes and other pension arrangements will be subject to employee PRSI and the Universal Social Charge. The PRSI change will be legislated for in the Social Welfare Bill.
Employer PRSI on pension contributionsThe current employer PRSI exemption for employee contributions to occupational pension schemes and other pension arrangements will be reduced by 50% from 1 January 2011. The change will be legislated for in the Social Welfare Bill.
Contribution limitMaximum allowable pension funds
The maximum allowable pension fund on retirement […]
Budget 2011 – PRSI Changes
The several changes to the calculation of PRSI in Irish payroll for 2011 as follows:
Employers
There are some changes to rates for 2011.
The Minister announced an Employer Jobs Incentive Scheme for 2010, this scheme has been extended for 2011. Where an employer creates a new job and takes on a person who has been unemployed for at least six (6) months, the employer will be exempt from paying Employers PRSI in the respect of that person’s employment for a period of one (1) year from the date of commencement.Employees
The contribution ceiling has been removed
For 2011 reckonable earnings for calculation of […]
Budget 2011 – New Universal Social Charge
For Irish payroll the new Universal Social Charge is a combination of the old Income Levy and the Health Levy. The Universal Social Charge effective 1 January 2011, is payable on Gross Income before anyrelief for Pension Contributions, Capital Allowances or Losses. All individuals are liable to pay the Universal Social Charge, if their gross income exceeds the threshold of €4,004 per annum. Medical card holders are not exempt from the Universal Social Charge. The band and rates for Universal Social Charge are
Persons under the age of 70
0% < €4,004
2% €0 to €10,036
4% €10,037 to €16,016
7% > €16,016
Persons aged 70 or over
0% < €4,004
2% […]
Budget 2011 – Other changes
Other changes that may have an impact on the running of Irish payroll in tax year 2011 are as follows:
Abolition of Tax relief on Trade Union subscriptions
Abolition of Tax relief on subscriptions to professional bodies
Abolition of Tax relief on approved share option schemes
Abolition of relief on BIK for employer provided childcare
Budget 2011 – Public Service Pension-related Deduction Changes
From 1 January 2011, the pension-related deduction which is charged to earnings in the public service will be subject to employee PRSI and the Universal Social Charge to be introduced on 1 January 2011. The PRSI change will be legislated for in the Social Welfare Bill.
Budget 2011 – PAYE Tax Credits and Bands
Tax Rates
The Standard Rate remains at 20% and the Higher Rate is unchanged at 41% or 40% if Marginal Rate applies (the marginal rate is unchanged).
The Sub-Contractor rate has changed it is now for sub contractors registered for tax with an established compliance record at 20% and 35% for sub contractors not registered for tax.
The Bands of Taxable Income for the Tax Year are as follows:
Single/Widowed € 32,800 (€ 36,400) @ 20% (without dependent children) Balance @ 41% or 40% if Marginal Rate applies
Single/Widowed € 36,800 (€ 40,400) @ 20% (One-Parent Family Tax Credit) Balance @ 41% or […]
Budget 2011 – Main Points
The main points of budget 2011, in particular those relating to the calculation of irish payroll are:
No reduction in state pension
€10 reduction in Child Benefit in both lower and higher rates, additional reduction of €10 for third child
Extension of Employer’s PRSI incentive scheme to 2011
Public service pensions above €12,000 per year will be reduced by 4%
Income tax band and credits to be lowered by 10 per cent
People on new reduced minimum wage will not be brought into tax net
DIRT increased by 2 per cent to 27 per cent on ordinary deposit accounts and by 2 per cent […]
Revenue – eRegistration
Monday 29th November 2010 saw the introduction of an increased range of eRegistration services through Revenue’s Online Service (ROS) These services include:-
Registering a new business for,
Income Tax,
Corporation Tax,
Employers PAYE/PRSI,
Value Added Tax,
Relevant Contracts Tax,
e-Levy.
Registering an existing business for any of the above taxes as additional taxes.
Cancelling any or all tax registrations for an existing business.
Allowing a ROS user, either an agent or an individual ROS user, to manage agent/client ‘links’.
It is proposed to support the registration of Partnerships and Trusts and Re-Registrations via ROS from the end of March 2011. Registration of Foreign Companies and Unincorporated Bodies […]