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 […]
€15bn Cuts and Taxes announced
Some of the taxation measures introduced in the four-year plan are as follows
Maintain the 12.5% corporation tax rate
PAYE threshold reduced by €3,000 to €15,300 by 2014
Net Pay by 2014 for a single person on €55,000 will be reduced by €1,860 per annum (€36 per week) or 4.8%. The net pay for a married on-income family on €55,000 will be reduced by €2,310 per annum (€44 per week) or 5.4%.
pension relief changes in the plan provides for the elimination of employee PRSI and Health Levy relief on pension contributions in 2011. It also commits, among other changes in 2011, to reducing […]
Reduced frequency of tax returns and payments
Reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will again be extended to eligible businesses from 1 January 2011. Similar arrangements in respect of RCT will also become available from that date.
Businesses making total annual VAT payments of less than €3,000 are eligible to file VAT returns and make their payments on a 6 monthly basis;
Businesses making total annual VAT payments of between €3,000 and €14,400 are eligible to file VAT returns and make their payments on a 4 monthly basis;
Businesses making total annual PAYE/PRSI payments of up to […]
Universal Social Charge
As we await Budget 2011 on December 7, I want to take a look at one of the changes announced by Brian Lenihan in his budget speech for Budget 2010, the creation of the Universal Social Charge. Originally this was to “replace employee PRSI, the Health Levy and the Income Levy”, however this is now unlikely given the time constraints and it will simply combine the Health and Income Levies. I think it is fairly safe to assume that the Universal Social Charge will operate as a “super” Income Levy, that is with new increased rates and adjusted bands. PRSI will be as before but less the Health […]
How to Process Disabilty Benefit
To handle Disability Benefit for Irish payroll when the employer pays the employee and the employee gives the cheque(s) to the employer.
N.B. Social Welfare payments are not subject to Income Levy
The Payroll Administrator need to set up three new pay elements:
Disability Addition Taxable – Gross Addition, subject to Tax but not PRSI
Disability Deduction Taxable – Gross Deduction , subject to Tax and PRSI
Disability Addition Net – Net Addition, subject to neither Tax nor PRSI
First Six Weeks or 39 Working Days:
Salary / Basic paid as normal
Amount of Disability cheque entered as a Gross Deduction
Amount of Disability cheque entered as a Net Addition
Result: […]