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 1st 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.