Press Release on SHARE BASED REMUNERATION
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 […]
Latest News on Share Option Schemes
During a meeting this morning with the Department of Social Protection it has been stated that the law has yet to be enacted to change the way share option schemes are calculated. This means that for the present share option schemes should be calculated with employers PRSI where applicable and that no refunds may made.
The Department of Social Protection (DSP) remind everyone of the following with respect to Share-based Remuneration.
1 The regulations to cater for the changes announced in March 2011, whereby schemes that were signed off between an employee and employer prior to 1 January 2011 are […]
Irish Payroll (A History of PAYE)
Pay As You Earn (PAYE) is the name given to the income tax system for employees in Ireland and was introduced on 6 October, 1960.The evolution of PAYE over the past 50 years is also the history of Irish payroll systems from paper to computers.
Devised by Sir Paul Chambers, PAYE was introduced into the UK in 1944 following trials in 1940 and 1941. The financial strain that the Second World War placed upon the UK meant that it needed to collect more tax from more people.
PAYE in Ireland applies to earnings of all kinds arising from employment, including […]
Latest PRSI Notes
For details on the operation of PRSI from 2nd July 2011, please consult the Department of Social Protection (DSP) website at http://www.welfare.ie/ and in particular the Advanced Notice of PRSI Rates at http://www.welfare.ie/EN/Publications/Advance_jul2011/Documents/anprsi2011_july.pdf
SEPA (Single Euro Payments Area) Ready Software from Ardbrook
The first thing to say is that Ardbrook software is SEPA ready. So, if you want to move today from your current EMTS payments to SEPA payments we can help with the transition.
What is SEPA?
The Single Euro Payments Area (SEPA) is made up of all the EU member states, as well as Iceland, Norway, Switzerland and Liechtenstein. It is an area in which you can make and receive payments in euro, under the same basic conditions, rights and obligations, regardless of their location, whether within or across national boundaries.
The consumer will be the major beneficiary of SEPA, which […]
Parking Levy Shelved
It has been reported in the Irish Independent that plans to charge employees €200 for parking their car at their workplace have been shelved. According the Independent a goverment source said “It’s definitely been put on the back burner now. In fact, I can’t see it coming in at all.
Jobs Initiative
The Irish Minister for Finance, Michael Noonan, introduced a Jobs Initiative yesterday, designed to improve Irish economic competiveness and stimulate job creation. The Jobs Initiative included a number of measures dealing with business and employment taxes, including:
Commitment to keeping the 12.5% Corporation Tax Rate
Abolition of Employer’s PRSI charge on share based remuneration
Temporary halving of the lower rate of Employer’s PRSI
Amendment of the R&D tax credit regime to enhance flexibility in how companies can account for the credit
Introduction of a new lower rate of VAT of 9% in respect of tourism-related services
Air Travel Tax reduced to zero
The measures introduced in the […]
Revised USC Frequently Asked Questions
Revised USC FAQs dated 15th March 2011 have been published on the Revenue website at www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
Annual membership fees of a professional body
Finance Act 2011 – change to section 118(5E) Taxes Consolidation Act 1997For the tax years 2004 to 2010, Section 118(5E) TCA 1997 provided that expenses incurred by an employer on behalf of an employee in connection with the payment (or reimbursement) of annual membership fees of a professional body were exempt from tax where such membership was regarded as “relevant to the business” of the employer.
Following the enactment of Section 7 of the Finance Act 2011, this tax exemption is not available for the tax year 2011 and subsequent tax years. Accordingly, the deductions of tax, PRSI […]
Share-Based Remuneration – Finance Act 2011 Changes
The Budget and Finance Act 2011 made several changes to share-based remuneration, in particular charging certain gains made by employees to universal social charge (USC) and to PRSI. These changes also impact on employers who are to be responsible for deduction and payment of most of the relevant charges.
Department of Finance statement on PRSI
The Department of Finance published a statement on its website (http://www.finance.gov.ie/) on 14 March 2011 in relation to the ‘grandfathering’ of the new PRSI provisions. This states that the charge to PRSI (both employer and employee) will not apply where share-based remuneration was […]