Live Headlines from today's Budget
Budget 2022 – Live
Today, Minister for Finance Paschal Donohoe is announcing a total budgetary package of €4.7 billion, which will be split between expenditure measures worth €4.2 billion, and tax measures worth half a billion euro. But what does it mean for Irish employers? In this article we break-down what Budget 2022 means for you, your business and your employees.
Here are Budget highlights so far:
- National Minimum Wage is set to increase to:
- €10.50 for Experienced Adult Workers
- €7.14 for Workers under 18
- €8.16 for Workers aged 18
- €9.18 for Workers aged 19
Universal Social Charge (USC)
- USC Exemptions for medical card holders & people aged over-70 earning less than €60,000 will be retained
- From 1st January, USC will apply at the following rates for those earnings in excess of €13,000. The ceiling of the second USC rate band has increased to €21,295 from €20,687.
Standard Rate cut off Points
- Standard Rate Cut Off Points have been raised for the following:
- Single / Widowed Person or Surviving Civil Partner without qualifying children – €36,800
- Person qualifying for the Single Person Child Carer Tax Credit – €40,800
- Married Couple or Civil Partnership – One Income – €45,800
- Married Couple or Civil Partnership – Two Income – €45,800 & €27,800 (The rate band is capped at the lower of €27,800 or the income of the lower earner. This increase cannot be transferred between spouses / civil partners)
- Personal Tax Credit, Employee Tax Credit & Earned Income Tax Credit to increase by €50
- The BIK exemption which was introduced from 1st January 2018 for electric vehicles provided by an employer to an employee has been extended until 31st of December 2025
- The Employment Wage Subsidy Scheme is extended in graduated rates until April next year with no change in October and November in Dec, Jan and Feb a two rate structure of €151.50 and €203 will apply. The scheme will close to new employers from 1 January, 2022
- The universal NCS subsidy has been extended to all children under the age of 15.
Remote Working Allowances
- An income tax deduction of 30% of the cost of vouched expenses for heat, electricity and broadband to be made available to remote workers.
Maternity Benefit & Parental Leave
- Maternity benefit and parental leave payments to be increased by €5
- Maternity Leave increased to €250
- Adoptive Leave increased to €250
- Carer’s Leave increased to €225
- Parent’s Leave increased to €250
- Paternity Leave increased to €250
Paycheck Plus’ payroll experts will discuss what these changes mean for employers in our Post Budget Webinar which will take place on the 12th November at 19:30. Clients can register here to book their place.
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on hand to help our clients navigate through this new terrain. Clients can register here for