Budget 2011 – Emergency Tax Credits and Bands
With the revised tax credits and Cut Offs for Irish payroll for 2011, when calculating tax on an emergency basis the credits and cut offs are as followsWhere employee does not provide a PPS Number
Weekly Paid
Weeks 1 – 4 CutOff Point €631 Weekly Tax Credit €32
Weeks 5 – 8 CutOff Point €631 Weekly Tax Credit nil
Week 9 onwards CutOff Point nil Weekly Tax Credit nil
Monthly Paid
Month 1 CutOff Point €2,734 Monthly Tax Credit €138
Month 2 CutOff Point €2,734 Monthly Tax Credit nil
Month 3 onwards CutOff Point nil Monthly Tax Credit nil
Where an employee does not provide a PPS number
The […]
€15bn Cuts and Taxes announced
Some of the taxation measures introduced in the four-year plan are as follows
Maintain the 12.5% corporation tax rate
PAYE threshold reduced by €3,000 to €15,300 by 2014
Net Pay by 2014 for a single person on €55,000 will be reduced by €1,860 per annum (€36 per week) or 4.8%. The net pay for a married on-income family on €55,000 will be reduced by €2,310 per annum (€44 per week) or 5.4%.
pension relief changes in the plan provides for the elimination of employee PRSI and Health Levy relief on pension contributions in 2011. It also commits, among other changes in 2011, to reducing […]
Budget 2011 will not be brought forward
Taoiseach Brian Cowen stated last night that the budget will not be held earlier than planned. The €15bn euro deficit reduction plan will be unveiled this afternoon. It has been reported in the irish press that included in the four-year plan will be
an increase in the marginal rate of tax to 42 per cent or higher
tax credits being reduced and tax bands being widened
a cut to the minimum wage from €8.65 an hour to €7.65
introduction of a “local services” charge
cuts to the social welfare budget of €2.5bn over the four years
How to Process Disabilty Benefit
To handle Disability Benefit for Irish payroll when the employer pays the employee and the employee gives the cheque(s) to the employer.
N.B. Social Welfare payments are not subject to Income Levy
The Payroll Administrator need to set up three new pay elements:
Disability Addition Taxable – Gross Addition, subject to Tax but not PRSI
Disability Deduction Taxable – Gross Deduction , subject to Tax and PRSI
Disability Addition Net – Net Addition, subject to neither Tax nor PRSI
First Six Weeks or 39 Working Days:
Salary / Basic paid as normal
Amount of Disability cheque entered as a Gross Deduction
Amount of Disability cheque entered as a Net Addition
Result: […]