Budget 2016: Finance Minister Michael Noonan delivered his budget 2016 speech to Dail Eireann on 13 October 2015, below is a brief summary of changes affecting your Payroll for 2016!
Income Tax Rate No changes for 2016, they stay @ 20% & 40% respectively.
Statndard Rate Cut-off The standard rate band remains at €33,800 for a single person.
Universal Social Charge:
USC entry point
has been increased from €12,012 to €13,000.
1.5% USC rate
has been decreased to 1.0%, This applies on the first €12,012 of income.
3.5% USC rate
has been decreased to 3.0%. This applies on income in excess of €12,012 up to an increased threshold of €18,668.
7% USC rate
has been decreased to 5.5%. This applies on income in excess of €18,668 up to €70,044.
11% USC rate
Pay Related Social Insurance (PRSI) PRSI credit with a maximum level of €12 per week or €624 in annualised terms.
Employer PRSI - the entry point to the top rate of 10.75% is being increased by €20 per week to €376.
Increased from €8.65 to €9.15
Home Carers Tax Credit Increased by €190 to €1000.
Here are some example of the benefits for employees!
A single person, working full time on the minimum wage, earning €17,542, will see an increase of 4.2 per cent (€708) a year.
A family with three children with parents working as a Garda and a nurse earning €55,000 and €50,000 respectively will have an additional €196 per month.
A self-employed worker earning €40,000 will see a gain of €1,002 in his or her annual net income due to this budget. An increase of 3.5%
A one income family with two children earning €35,000 will see their take home increase by €57 a month.
Further updates and clarity of changes announced will be published here as we get them.