Oct 2019
9
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.
| 2019 | 2020 | |
| Employer PRSI Class A Reduced Rate | 8.7% | 8.8% |
| Employer PRSI Class A Higher Rate | 10.95% | 11.05% |
| Employer PRSI Class H | 10.25% | 10.35% |
BrightPay Payroll Software | Thesaurus Payroll Software
