PRSI Increases on the way?
The Minister for Social Protection Joan Burton has indicated in a speech at the weekend that she is in favour of increasing PRSI contributions for both employees and employers.
Ulster Bank Problems processing Transactions
The problems Ulster Bank had processing transactions last week will continue into this week. Ulster Bank have stated that the backlog is now unlikely to be cleared before then end of the week.
Budget 2012 – USC Changes
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.
Budget 2012 – Employer PRSI Calculation Change
Budget 2011 abolished PRSI relief in the case of the employee element of PRSI in relation to the employee pension contributions and provided for the abolition of half of the PRSI relief in the case of the employer element of PRSI. In Budget 2012 the relief from employer PRSI on employee pension contributions is now fully abolished. This means that employer PRSI will increase for any employee who makes a pension contribution.
There are no changes in 2012 to the PRSI thresholds and rates.
Budget 2012 – The Highlights
The main points as regards taxation of Budget 2012 are as follows
12.5% corporation tax rate remains cornerstone of economic policy
Introduction of Special Assignee Relief Programme
Enhancement of R&D tax credit regime targeted at SME’s
Removal of Employer PRSI relief on pension contributions
Increase in standard rate of VAT from 21% to 23%
No change in income tax rates, bands, or credits
No increase in employee PRSI or USC
USC exemption level rises to €10,036 from €4,004 in 2011
Increase in CGT, CAT and DIRT rates to 30%
Stamp duty on non-residential property reduced to 2%
Sick Pay Tax Exemptions changed
PRSI may widen to include rental income
Government Announce €3.8bn in cuts and tax increases in Budget 2012
The Government announced on Friday that spending cuts and tax increases totalling €3.8 billion will be introduced in Decembers budget. €1.6bn will be in the form of tax increases, however the Minister for Finance Michael Noonan has stated that there will be no changes to income tax rates, bands or credits next year, with revenues coming from other sources. Changes to the VAT rate, property charges including the €100 household charge and carbon charges were possible areas for taxation, the Minster said yesterday.
Upcoming Budget Changes – Budget 2012
After a meeting with Revenue earlier this week, updating of the EuroPayX and PayDay payroll software is proceeding. Incorporating all the amendments due to the change in the calculation of Universal Social Charge to cumulative basis from week one. This not only means changes to the calculation of Universal Social Charge but also to the following:
P60 will now show Universal Social Charge details, negating the requirement to produce a year end USC certificate.
The P2C Tax Credit import is being modified to import the extra cumulative information for USC
P45’s will now also include USC cumulative information, also it will no longer be possible to […]
Budget Day 2012 Announced
It has been announced that the Irish Budget 2012 will be on Tuesday 6th December 2011.
Change to calculation of Universal Social Charge from 2012 Announced
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
PRSI Refunds – Share based Remuneration/PRSA’s
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.
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