Budget 2022

Budget 2022

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:

Minimum Wage

  • National Miniumum 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)

Tax Credits

  • Personal Tax Credit, Employee Tax Credit & Earned Income Tax Credit to increase by €50

BIK

  • 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

Subsidy Schemes

  • 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.

Paycheck Plus, Your Irish Payroll Processing Team

Paycheck Plus is an award-winning Irish payroll bureau, serving businesses across Ireland and the UK. With industry-leading accuracy levels, strict levels of confidentiality and top-rated payroll processes, we provide comprehensive, ISO and ISAE 3402 accreditedpayroll outsourcing services to organisations of all sizes.

Our highly experienced payroll processing experts can help you to navigate all aspects of local taxation and to meet your legal requirements, including payroll consultancypayroll audits, payroll reporting, payroll trainingcompany set-up and wind-down, and special projects.

To ensure payroll accuracy or for more information simply request a callback now or call our Irish payroll bureau  on +353 (0) 1 905 9400

For UK Payroll Processing please contact our Manchester Payroll Service on +44 (0) 161 464 8720

on hand to help our clients navigate through this new terrain. Clients can register here for