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 1, 2012 the deduction of USC will be done on a cumulative basis rather than on a week 1 basis as in 2011. While 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 online 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 January 1, 2012 Employer PRSI Relief is abolished on employee pension contributions.
From January 1, 2012 the first six weeks of illness benefit payments are subject to PAYE, previously payments for the first six weeks were tax free (exempt period ).
The Kilkenny County Enterprise Board will be a running a training programme on the Thesaurus Payroll Package commencing on Monday February 13 with limited places still available. For further information check out its website www.kceb.ie, phone (056 ) 7752662, or email enquiries@kceb.ie
