From 2012 the USC exemption limit will be raised from €4,004 to €10,036 per annum. The other major change to the calculation of the Universal Social Charge is that it will now be calculated on a cumulative basis removing the need for refunds at the end of the tax year.

It has been announced that the Irish Budget 2012 will be on Tuesday 6th December 2011.

Revenue today announced a change in the method of calculation of the Universal Social Charge. From January 2012 it will be calculated on a cumulative basis as per PAYE. USC thresholds will be managed in the same way as Cut-off points are for PAYE. Follow the link below for further information http://www.revenue.ie/en/practitioner/ebrief/2011/no-542011.html

This sets out the arrangements for refund of PRSI paid on certain share-based remuneration.   These arrangements may also be availed of in respect of PRSI incorrectly deducted and remitted in the 2011 tax year, on employer contributions to their employees’ Personal Retirement Savings Accounts (PRSAs). SHARE-BASED REMUNERATION – EMPLOYER PRSI As set out in the Minister for Social Protection’s statement of 23 August 2011, employers should cease deducting and remitting employer PRSI on share-based remuneration with immediate effect.   Where employer PRSI on share-based remuneration has been deducted and remitted since 1 January 2011, a refund of PRSI may now be due. SHARE […]

The Minister for Social Protection, Joan Burton T.D., today (23rd August) announced that employers should cease deducting and remitting employer PRSI on share-based remuneration, with immediate effect. The previous Government imposed employer and employee PRSI on all share-based remuneration.   As part of this Government’s Jobs Initiative announced in May of this year, it was decided to abolish the employer element of PRSI on share-based remuneration entirely.   This decision recognises that this charge on employers needlessly increased the costs of doing business in Ireland and has the potential to negatively affect current employment levels and future investment decisions.   As […]

The programme for government of the new Fine Gael / Labour government has been published and contains some proposals that will effect taxation Maintenance of Ireland’s 12.5% corporation tax rate No increase in the standard 10.75% rate of Employers’ PRSI, and a reduction of 50% of the lower 8.5% rate up to the end of 2013 on jobs paying up to €356 per week No further changes to income tax rates, bands or credits, and a review of the USC Property tax reliefs and other shelters which benefit very high income earners will be reduced, capped or abolished An acceptance of the EU/IMF bailout conditions for at […]

It has been announced by Fine Gael one of the parties likely to form the next government after the general election on Friday 25th February, that it will be introducing a “Jobs Bill” within a 100 days of taking office. This “Jobs Bill” may include their plan to reduce the 8.5% employer PRSI rate by half, this change may required changes to Payroll systems

I would like to thank all the readers of my Blog and all Ardbrook’s customers for a successful 2010 and wish you all a happy and prosperous 2011. Ardbrook’s offices will be closed from 1pm on Friday 24th of December until 10am on Wednesday December 29th

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