Budget 2015 - The Changes to Expect in your Payslip

What difference can I expect to see in next year payslips after 2015 budget?

There were a number of taxation changes announced in the 2015 budget which will impact the take home pay of employees.  

What has changed in terms of Income tax? The higher rate of income tax has been reduced from 41% to 40%. This will mean a saving of tax at 1% on all earnings over €33,800, in comparison to 2014. The standard rate cut off (the amount that can be earned at the lower rate of tax (20%) has been increased by €1,000 as follows: Individuals                €33,800 Married Couple        €42,800 This will yield an annual tax saving of €210, increasing the take home pay on your payslip.  

What has changed in terms of Universal Social Charge? The rates and bands for USC calculations have changed, and a new rate of 8% has been introduced for earnings over €70,044. The new bands are as follows:

These new bands will mean savings for individuals earning less than €70,044 due to the lower rates and increased bands up to €17,576. For individuals earning more than €70,044, they will pay an extra 1% on all earnings above this level, which would mitigate any savings made at the lower bands, and depending on the level of salary, could end up paying more USC overall in 2015, than was paid in 2014.  

What has changed in terms of PRSI? There have been no changes made to PRSI for 2015, this will remain the same as it was in 2014.   2015 Tax Calculator For an acurate and  full breakdown of your take home pay for Contractors and Employees take a look at our online Tax Calculator for 2015 here https://www.iconaccounting.ie/tax-calculator/   Kathryn Waller ACA AITI Senior Accountant