Budget 2014 - Employers PRSI Increase

Just a reminder that when from 1 July 2011 the lower rate of employer PRSI was halved (to 4.25%) for all jobs that pay up to €356 per week, that the rate will be restored to 8.5% from 1 January 2014.

Budget 2014 - Main Points

The main points of Budget 2014 are as follows:

• Pensions, carers' allowance, disability benefit are untouched. 
• Basic rate of social welfare stays the same, as does child benefit. 
• Maternity benefits standardised at €230 per week 
• Free travel, respite care grant untouched. 
• Telephone allowance in the household benefit package to be discontinued from January 1st.
• Fuel allowance has been left untouched.  
• €113m to be saved by removing "ineligible and redundant" medical cards. 
• Income threshold for medical cards for over-70s lowered 
• Free GP care for children aged five and under confirmed 
• Reduced rate of €100 extended to new extrants under 25  to jobseekers scheme
• Home heating oil and petrol/diesel have also been left alone. 
• VAT rates are staying at 9%, 13.5% and 23% in 2014
• No increase in income tax, USC in 2014.
• DIRT rises to 41%
• Medical insurance tax relief capped at €1000 for adult, €500 for a child  
• Air travel tax to be reduced to zero from April 2014
• Beer and spirits hit by 10 cent rise, wine up 50 cent
   

Budget 2014 - It's steady as she goes

Budget 2014 may contain many changes but from the point of view of payroll and the calculation of PAYE Tax, USC and PRSI there are none. It appears that all rates remain the same as they were in 2013.

Budget 2014 - The wait is almost over

At 2:30pm today the Minister for Finance will rise in the Dail and begin the budget speech. While many tax measures appear to have been leaked in advance such as

• Increase in DIRT tax to 41%
• Capital Gains Tax and Capital Aquisitions Tax to be increased
• Property tax to be doubled as outlined previously
• Pension tax relief for higher earnings to capped at 65,000 euro
• Taxes on the "old reliables" alcohol, cigarretes and petrol expected to go up

 

Local Property Tax Payroll Changes

We will be releasing an update to the EuroPayX and Payday payroll software in the next few weeks which will allow employers to comply with the changes for the collection of local property tax via the payroll.

Budget 2013 - Advance Notice of PRSI Changes

The Advance Notice of PRSI Changes for Computer Users 2013 is now available on welfare.ie at  

 

http://www.welfare.ie/EN/Publications/Advanced2013/Documents/anprsi2013.pdf

Budget 2013 - BIK on preferential loans

Increase from 12.5% to 13.5% in the specified interest rate used in calculating the taxable benefit from preferential loans, other than home loans. The specified rate used to calculate the taxable benefit from home loans is decreased from 5.0% to 4.0%. Specified interest rates are reviewed annually in the light of current interest rates available in the market.

Budget 2013 - PRSI and USC Changes

The abolition of the standard PRSI allowance means most workers will pay an extra €264 a year. The minimum contribution from the self-employed will rise from €253 to €500.

The reduced rate of USC for those over 70 with an income in excess of €60,000 will be discontinued at the end of the year. 

Budget 2013 Main Points

The main points of the budget as announced today by Finance Minister Michael Noonan are:

• The abolition of the €127 a year PRSI allowance.
• Child benefit cut by €10 per month
• Capital Acquisitions Tax threshold falls by 10 per cent.
• Carbon tax extended to solid fuels
• Corporation tax remains unchanged
• DIRT increases by 3% to 33%
• Motor tax to rise from January 1st
• Excise duty on tobacco to increase
• €1 duty increase on wine
• 10 cent rise on spirits, beer and cider
• No increase on petrol/diesel
• Property tax will be collected by the Revenue
• Property tax based on market value introduced
• Increase in USC for over 70s with incomes of €60,000+
• Homes bought in 2013 exempt from property tax
• Film tax relief extended to 2020
• Tourism 9% VAT rate to remain for 2013
• Farmers to get extended rate of stock relief
• CRO to publish guidance for SMEs on credit
• CRO to extend team of reviewers
• Diesel rebate for hauliers from July
• R&D tax credits amended to encourage innovation
• Tax reform plan for SMEs

Revenue Revised USC FAQ's

Revenue has revised its Universal Social Charge Frequently Asked Questions Document which is available on the following link www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf

Budget 2013 - Property Tax

It has been reported in the Irish Independent that the new property tax, now to be collected by Revenue will be implemented as follows

P60 format Changed for 2012

Revenue have issued a new P60 format for 2012 which can be seen using the following link

http://www.ros.ie/PublisherServlet/offlineapps?language=en&languageSelect=en#Publications

and scrolling down to the P60 Section.

Employers will need to be careful when issuing P60's as the employees address no longer appears. It will also cause problems for employers who post P60's as address labels will now need to be used. In our EuroPayX payroll product it is possible to email P60's direct to the employees. Ardbrook will try to include the address on the P60 and to get it Revenue approved.

Other changes to the P60 include

• the amount of taxable illness benefit is now shown
• Flag to indicate if USC amount was deducted or refunded
• Previous employment Pay for USC
• Employers email address no longer shown

Budget 2013 Troika calls for €1.25 in new taxes!

A report on the seventh review on the terms of Ireland’s EU-International Monetary Fund bailout, which was published this afternoon, states that revenue measures to raise at least €1.25 billion in the Budget will also include 

Budget 2013 Toughest Ever?

The Taoiseach Enda Kenny warned last night that the coming budget will the the toughest yet with a package of cuts and tax increases. December's Budget will be a €3.5bn package, with €2.25bn coming from cuts, and a further €1.25bn in extra taxes.

There is also disagreement between the coalition parties on whether PRSI charges should be increased or social welfare payments reduced to cover a deficit in the social welfare fund of  €2.2bn.

Bank Modulus Check Updates as over 130 Bank Branches Close

With the proposed closing of over 130 bank branches, updates to the Ardbrooks Bank Modulus Checker routine ( validates bank account numbers ) will be fairly frequent over the next 12 months as bank accounts are moved from one branch to another. This is especially true in the case of AIB bank accounts as their validation links the bank account number to the sort code which will change as branches close.