14
Oct
Further to Budget 2020 announced by Finance Minister Paschal Donohoe last week, the impact on payroll for 2020 is as follows:
- There were no changes made to tax credits, cut off points or the rates of PAYE.
- There were no changes made to the Universal Social Charge rates (USC).
- The Earned Income Tax Credit increased by €150 from €1,350 to €1,500.
- Employer PRSI will increase from 8.7% to 8.8% for the Class A Reduced rate and from 10.95% to 11.05% for the Class A Higher rate.
- The 0% Benefit in Kind charge on qualifying electrical vehicles provided by employers to employees has been extended until 2022.
- The Minimum Wage increase of €9.80 to €10.10 has been deferred until there is more clarity on Brexit.