Oct 2018
10
Budget 2019 Employer Payroll Focus
Pay As You Earn (PAYE)
- There was no change to tax rates for 2019, the standard rate will remain at 20% and the higher rate at 40%.
- Standard Rate Cut Off Points (SRCOPs) will be increased by €750 from 1st January 2019.
Earned Income Tax Credit
The Earned Income Tax Credit will be increased by €200 from €1,150 to €1,350.
Home Carer Tax Credit
The Home Carer Tax Credit will be increased by €300 from €1,200 to €1,500.
Universal Social Charge (USC)
- Exemption threshold remains at €13,000
- 4.75% rate reduced to 4.5%
- 2% threshold increased by €502 from €19,372 to €19,874
- No change to 8% rate
For 2019, USC will apply at the following rates for those earning in excess of €13,000
| Rate Bands | Rate |
| Up to €12,012 | 0.5% |
| Next €7,862 | 2% |
| Next €50,170 | 4.5% |
| Balance | 8% |
Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will pay a maximum rate of 2%.
The emergency rate of USC remains at 8%.
Non PAYE income in excess of €100,000 is subject to USC at 11%.
National Training Levy
The National Training Levy of 0.8% which is collected as part of the employer PRSI contribution will increase to fund further and higher education, the increases are as follows:
- 0.9% in 2019
- 1% in 2020
Pay Related Social Insurance (PRSI)
With the increase in the National Training Levy which is collected as part of the employer PRSI contribution, employer PRSI will increase as follows:
- 8.6% increased to 8.7%
- 10.85% increased to 10.95%
The weekly threshold for the higher rate of employer PRSI will be increased from €376 to €386.
The rates of PRSI for Class S will remain unchanged but the range of benefits available to Class S contributions will be extended to include Jobseeker’s Benefit in late 2019.
Benefit in Kind (BIK) - Electric Cars
The 0% rate of BIK introduced in Budget 2018 for electric vehicles provided by an employer to an employee has been extended until 2021 with a cap of €50,000 on the Original Market Value of the vehicle.
National Minimum Wage
The National Minimum Wage will increase from €9.55 to €9.80 per hour in respect of hours worked on or after 1st January 2019.
Social Welfare Payments
There will be a €5 increase in all weekly Social Welfare payments with effect from week commencing 25th March 2019. The maximum personal rate of Illness Benefit will be increased to €203 per week. Maternity Benefit and Paternity Benefit will be increased to €245 per week.
Paid Parental Leave
The Budget provides for 2 additional weeks paid parental leave per parent (paid by the DEASP) to be introduced in November 2019. The leave must be taken during the first year following the birth of a child.
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