Budget 2019 Highlights for Employers and Employees

Budget 2019 Highlights

Budget 2019 highlights | Payroll Compliance

Budget 2019 for Businesses

Corporation Tax: the corporation tax rate will remain at 12.5%.

VAT: the VAT rate for tourism and hospitality sector will increase from 9% to 13.5%. There will be no change to VAT for newspapers and sporting facilities, although VAT on electronic publications will be reduced from 23% to 9%. 

National Training Fund Levy: the National Training Fund Levy is set to increase from 0.8% to 0.9% in 2019.

Start-Up Companies: Tax reliefs will be extended for certain start-up companies until the end of 2021.

Earned Income Tax Credit (EITC): The EITC for self-employed workers will increase by €200, from €1,150 to €1,350. 

Budget 2019 for Employees

Tax Rates: the 20% standard tax rate and 40% higher tax rate remain unchanged.

Standard Rate Cut Off Point (SRCOP): the SRCOP will increase by €750 from €34,550 to €35,300 for a single individual and €43,550 to €44,300 for a married couple with one earner. 

Universal Social Charge (USC): the USC exemption threshold of €13,000 will remain unchanged. The middle USC point will increase by €502 from €19,372 to €19,874. Also, the middle rate of USC paid on income will decrease from 4.75% to 4.5%. The surcharge rate of 3% for non-PAYE income over €100,000 will remain unchanged.

PRSI: the weekly threshold for the higher rate of employer’s PRSI will increase from €376 to €386.

National Minimum Wage: the national minimum wage will increase on January 1st 2019 to €9.80 for an experienced adult worker.

Budget 2019 Miscellaneous

Excise Duty: excise duty on alcohol, diesel and petrol will remain unchanged, however a pack of 20 cigarettes will be 50 cent more expensive from midnight on 9th October 2018 with other tobacco products being increased proportionally.

Social Welfare: weekly social welfare payments will increase by €5 from March 2019. The Christmas bonus for those receiving social welfare has been fully restored. The rate for a qualified child payment to parents on social welfare will increase by €2.20 per week for under 12s and €5.20 per week for over 12s. There will be an additional two weeks parental leave to every parent of a child under one year from November 2019, to increase to seven weeks over a number of years. The back-to-school clothing and footwear allowance will increase by €25.

Home Carer Tax Credit: this will increase by €300 from €1,200 to €1,500.

Paycheck Plus Payroll Compliance

Payroll compliance requirements change regularly and it’s imperative that HR, payroll teams, accountant’s etc. keep up with these changes otherwise significant penalties can be incurred. Payroll mistakes, or calculations based on outdated information, can be costly for companies and ensuring payroll compliance can be difficult for businesses and staff that don’t have payroll as a core focus.

However, here at Paycheck Plus, we keep up to date with the most recent legislation developments so you don’t have to. Our payroll specialists can ensure that your payroll is compliant with the continuous regulation advancements. We provide confidential executive payroll services, managed payroll, auditing, consultancy and many other services that ensure payroll compliance.

To ensure payroll compliance and for expert support contact PaycheckPlus today.

Contact Paycheck Plus | Specialist Payroll Service Providers

For more information on any of our services request a callback from our payroll specialists today, call our head office on 041-9892100 or request a quote here.

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