Employers should be aware that there have been a number of significant changes to the calculation of employee deductions and the Universal Social Charge (USC) as a result of the 2011 Budget as follows:
USC Changes: With effect from January 1st 2012 the deduction of USC will be done on a cumulative basis rather than on a Week 1 basis as in 2011. Whilst this is a significant change it brings the USC system more in line with the operation of the PAYE system
The treatment of sick pay has changed in 2012 from how it was treated in 2011.
A large number of PRSI classes have been abolished in 2012.
Most communications with the Revenue will now need to be done using the Revenue on Line system
The 2012 Tax Credit certificates issued to employers will look different as they will now include USC Rates and Cut Off Points for each employee
The emergency basis may now be applied to USC deductions for employees without Tax Credit Certs
A new Form P45 has been introduced which takes account of USC deductions
From 1st Jan 2012 Employer PRSI Relief is abolished on employee pension contributions
From 1st Jan 2012 the first 6 weeks of Illness Benefit payments are subject to PAYE, previously payments for the first 6 weeks were tax free (exempt period).
The Kilkenny County Enterprise Board will be a running a training programme on the Thesaurus Proll Package commencing next week. For further information check out our website www.kceb.ie or please contact our offices at (056) 7752662 or email firstname.lastname@example.org.