Budget 2011 – Revised Operation of Universal Social Charge
Previously we had been told that for all practical purposes we could ignore the lower €4004 threshold, however today Revenue stated that the arrangements for the treatment of the lower threshold of Univeral Social Charge (€4004) has been changed so that those earning €4004 are not to be subjected to charge.
This means that if an employees Gross pay for USC does not exceed €77 per week then they will not be subject to the USC, however if the Gross pay for USC goes over the €77 euro limit by even 1 cent then the employee must pay USC […]
Budget 2011 – The Parking Levy
The Ministerial Order to introduce the Parking Levy was signed in July 2010, and can be introduced at any time, subject to 3 months notice. It is unlikely the Parking Levy will go live prior to 1 April 2011, and will only if the designated areas in which the levy will apply are published and the 3 months notice of implementation given.
The amount of Parking Levy collected from employees will be included in the PAYE box when remitting the P30 Monthly / Quarterly return. The P35 will be required to include the number of employees from whom they […]
Budget 2011 – Irish Payroll PRSI Clarifications
Confirmation from Welfare for Class K – if earnings less than or equal to €100 in a week record as M.
Employee and Employer reckonable earnings for PRSI purposes are to be calculated independently, and at the relevant rate in respect of each seperate amount. This leads to the potential problem where employee and employer PRSI are returned at two different PRSI classes. To avoid this the return (contribution) will always be at the subclass designated by the employee reckonable earnings.
Advance Notice to computer users for PRSI changes now available on welfare.ie click here
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 – 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 – 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 […]