Budget 2020 – Employer Focus

Finance Minister Paschal Donohoe announced Budget 2020 with very few changes:

• There is no change to tax credits, cut off points or the rates of PAYE

• There is no change to the rates of Universal Social Charge (USC)

• The Earned Income Tax Credit will increase by €150 to €1,500

• The Home Carer Tax Credit will increase by €100 to €1,600

• The Benefit In Kind will remain as 0% on electric vehicles provided by an employer to an employee until 2022

• The Minimum Wage increase of 30c recommended by the Low Pay Commission has been deferred due to the threat of a no-deal Brexit. The current rate of €9.80 per hour will remain until there is more clarity on Brexit.

PRSI: 

The National Training Levy which is collected as part of Employer PRSI will increase by 0.1% from 0.9% to 1% in 2020 to fund further and higher education.

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Posted byDebbie ClarkeinPAYE