Budget 2018 – Payroll Changes

The Minister for Finance introduced the 2018 Budget on 10 October 2017. Further detailed measures will be included in the Finance Bill to be published on 19 October 2017.

Here are the budget 2018 details that will affect your payroll for 2018. There will be an increase in employers PRSI from 10.75 to 10.85% with effect January 1^st 2018. An increase of 1%.

Income Tax PAYE – Good news for employees as there has been an increase to the Standard rate band of €750.00, from €33,800 to €34,550.

USC Changes 2018

The 2.5% rate for USC has been reduced to 2% and the band has been increased by €600. This will mean less USC due at the 2% rate.

The 5% rate has been reduced to 4.75% a decrease of 0.25%. Again a reduction in USC due.

No change to the other rate bands for USC. USC relief for Medical card holders will be continued for another 2 years. Medical card holders and the over 70s whose income does not exceed €60,000 will pay USC at a maximum rate of 2%.

BIK – A 0% BIK is being introduced for 1 year in respect of electric vehicles. Electricity in the workplace will also be exempt for charging these vehicles. The zero % BIK will be reviewed in next year’s budget.

The Earned income tax credit for self-employed has been increased to €1,150. Great news for the Self-employed.

If you are a carer its good news as the Home Carer tax credit increased by €100 to €1200

Overall a Positive Budget in terms of payroll changes.

Contact Tailored Payroll for all your payroll needs on 0863623217 or Request a callback from a qualified Payroll Team member today.

Winter Fuel Allowance 2017-2018

A fuel allowance is paid to people who are dependent on long term social welfare payments and who are therefore unable to provide for their heating needs in winter months. There is one allowance available per household. This payment is usually paid with your social welfare payment on the day that this is paid.

However this year for the 2017-2018 Fuel season you can now have the option of getting your total allowance of €585 paid in 2 lump sums, rather than weekly with the social welfare payment.

The 2017-2018 fuel season begins on Monday the 2^nd of October 2017

 

Contact Tailored Payroll for all your payroll needs on 0419883524 or Request a callback from a qualified Payroll Team member today.

 

Tips on what to do when changing jobs

Changing employment

Once you have made the decision to change employers, there are a few things you need to do to make the change to your next employment easy for tax purposes. Firstly, ensure you receive your P45 from your current employer. On the first day of your new employment, ensure you bring the P45 with you and give to the Payroll department. Your new employer will use the details on your P45 to calculate your tax.

Register for myAccount on http://www.revenue.ie . This enables you to register your new job online.

If you do not give your new employer a P45, you may end up paying too much tax because emergency tax may be deducted from your pay.

 

Contact Tailored Payroll for all your payroll needs on 0419883524 or Request a callback from a qualified Payroll Team member today.

 

Easter Holidays 2017

Is Good Friday a Public Holiday? A question we receive many times around this time of year.

The answer is No, Good Friday is not a Public Holiday, however it is in fact a Bank Holiday and can be counted as annual leave if an employee does not work it. An employer is not under any obligation to give their employees a day off, however some employers choose to do so as a good will gesture. The phrase ‘Bank Holiday’ has no legal meaning.  Bank holidays are where banks and schools close for the day.

There are nine Public Holidays in Ireland:

1. New Years Day 1^st January
2. St. Patrick’s Day – 17^th March
3. Easter Monday
4. First Monday in May
5. First Monday in June
6. First Monday in August
7. Last Monday in October
8. Christmas Day – 25^th December
9. St Stephens Day – 26^th December

Contact Tailored Payroll for all your payroll needs on 0419883524 or Request a callback from a qualified Payroll Team member today.

P35 Deadline 15th February 2016

P35 2016 Deadline Fast Approaching

With the P35 deadline for 2016 fast approaching, as of January 2015 Revenue has issued a notice to employers regarding the completion of the P35 return. In this included the reminder to include any amount of medical insurance (if applicable) eligible for tax relief.  

Where an employer pays Medical Insurance as a benefit in kind for an employee, the ‘Medical Insurance Premium eligible for tax relief paid by employer’ field on the P35L must be completed. The amount of Medical Insurance eligible for tax relief is capped at €1,000 per adult and €500 per child.

 

An example:

Gross premium paid (in respect of a single-person adult policy) by employer in 2016 was €1,500

P35L ‘Medical Insurance Premium eligible for tax relief paid by employer will be €1,000

It is the amount eligible for tax relief (€1,000) that should be included on the P35L and not the amount of Medical Insurance paid by the employer.

Employers:  The deadline for 2016 is February 15th.

File your return and associated payment the easy way through ROS – the extended deadline if you both file and pay through ROS is 23rd February.

Contact Tailored Payroll for all your payroll needs on 0419883524 or Request a callback from a qualified Payroll Team member today.

Home Carer’s Tax Credit

Home Carer’s Allowance 2017

The Home Carer’s Tax Credit is applicable to married couples or civil partners who are jointly assessed, where one spouse or civil partner works in the home caring for a dependent person. The credit for 2017 is now €1,100 per annum an increase of €100.00 from 2016. The home carer’s income must not exceed €7,200.

A Home Carer’s Tax Credit can be claimed when:

• The married couple or civil partners are jointly assessed for tax
• One spouse or civil partner works in the home caring for one or more dependent people
• The home carer’s own income is below the threshold in the tax year you are claiming for.

A dependent person is a:

• Child for whom child benefit is payable
• Person aged 65 or over
• Person with a disability that requires care

A dependent person you are caring for cannot be a spouse or civil partner. They can however, be a relative by marriage, or someone for whom you act as a legal guardian.

Applications for the Home Carer’s Tax Credit should be made to Revenue.

 

Contact Tailored Payroll for all your payroll needs on 0419883524 or Request a callback from a qualified Payroll Team member today.

Revenue release new App for Android and IOS

Revenue has released a new App and its called RevApp. The service is provided by Revenue to help you manage your tax affairs on the go. Best part is that its completely free!

It provides access to My account, ROS and more.

What’s really good about this app is that Self Employed/Employers can now download a mobile certificate using RevApp, allowing you access to ROS from your mobile device.

RevApp is available now to download free from the App Store and Google Play Store.

You will need internet access to use the app. Revenue advise that you connect to your wifi, particularly when uploading and downloading images of receipts

Contact Tailored Payroll for all your payroll needs on 0863623217 or Request a callback from a qualified Payroll Team member today.

Department of Social Protection Christmas Bonus

As part of the budget 2017, it was confirmed that anyone getting monthly payments (welfare and pension recipients), will receive any bonus due in their December payment from the Department.

The Christmas bonus is 85% of your normal payment. This is a non-taxable payment.

Approximately 1.3 million people will benefit from the Christmas bonus in December 2016.

Contact Tailored Payroll for all your payroll needs on 0863623217 or Request a callback from a qualified Payroll Team member today.

Small Benefit for Christmas!

Reward your employees this Christmas. Employees can receive a Small Benefit Exemption to the value of €500.00. Not only will your employees be rewarded, Employers also save as they don’t pay any Employer PRSI on this benefit.

Under the Revenue Commissioners approved Small Benefit Exemption Scheme, employers can provide their employees with a small benefit which will not be subjected to PAYE, PRSI or USC. However there are some rules that come with this:

• The benefit cannot be cash
• An employee can only receive one such benefit in one tax year
• The benefit cannot be part of a Salary Sacrifice scheme
• Whereby the benefit exceeds the threshold, the full value of the benefit will be subject to PAYE, PRSI and USC

The Small Benefit for employees is usually given by the Employer in the form of a voucher, often at Christmas time.

Contact Tailored Payroll for all your payroll needs on 0863623217 or Request a callback from a qualified Payroll Team member today.

P45 Changes 2017

Revenue has announced that the ROS and paper version of the P45 has been revised for 2017. And it will include:

• A PRSI Exemption Indicator for employees who are exempt from paying PRSI in Ireland
• A USC Exemption Indicator for those employees who are exempt from USC
• Increased options for pay frequency (0 = weekly, 1 = fortnightly, 2 = monthly, 3 = 4 weekly and 4 = other)

The ROS version of the P45 is available since 27th November 2016, and an updated paper copy (blue version) will be available in early December.

Contact Tailored Payroll for all your payroll needs on 0863623217 or Request a callback from a qualified Payroll Team member today.