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In addition to Optim Payroll’s excellent customer service, we also rely on their technical skills and expertise to help us strategize related payroll issues. We consistently receive high quality services and I gladly recommend Optim Payroll to any business
Anne Marie Murphy-Jones
Home Instead Senior Care
In the recent 2016 Budget, Minister Michael Noonan announced significant changes in the calculation of Class A PRSI which take effect from January 1st 2016. Class A is the most common PRSI class for employees in the private sector aged over 16 and under 66 years of age.
The main changes in Class A are as follows:
1) The weekly threshold above which the 10.75% high rate of Employer PRSI applies will increase from €356 to €376. This €20 increase in the threshold gives employers a saving of 2.25% on those earnings between €356.01 and €376.00 where total gross earnings do not exceed €376.00
2) A new tapered weekly PRSI credit will apply to employees earning between €352.01 and €424.00 per week.
Calculation of the Weekly PRSI Credit:
The maximum weekly PRSI Credit of €12.00 applies at gross weekly earnings of €352.01.
For earnings between €352.01 and €424.00, the PRSI credit is reduced by one-sixth of the excess of weekly earnings which are over €352.01.
e.g. if an employee earns €390 per week:
PRSI @ 4% = €15.60
Less Credit of €12.00 minus ((390.00-352.01) divided by 6) = €12.00 – (37.99/6) i.e. €12.00 – €6.33 = €5.67
Weekly Employee PRSI = €15.60 minus €5.67 Credit = €9.93.
This will have a significant positive impact on employees earning between €352.01 and €424.00 per week.
No credit applies once weekly earnings exceed €424 per week and the full Employee PRSI rate of 4% becomes payable.
What needs to be done?
Employers should review the impact of this change on their payroll cost, particularly those with large numbers of part-time employees who may be affected.
Section 86(1) of the Workplace Relations Act 2015 came into effect on August 1st 2015. This section makes amendments to the Organisation of Working Time Act 1997 and results in the following changes:
- Statutory annual leave entitlement accrues during a period of certified sick leave.
- An annual leave carryover period of 15 months after a leave year will apply to those employees who could not, due to illness, take annual leave during the relevant leave year or during the normal carryover period of 6 months.
- On termination of employment, payment in lieu of untaken accrued annual leave will apply to leave which was untaken as a result of illness in circumstances where the employee leaves the employment within a period of 15 months following the end of the leave year during which the statutory leave entitlement accrued.
This brings the Organisation of Working Time Act into line with recent rulings of the Court of Justice of the EU.
To whom it may concern,
I would like to strongly recommend to you the services of Optim Financial Solutions. I expanded my business in the last six months which required the hiring of extra staff; on the advice of my accountant, I engaged Optim Financial Solutions to take care of the payroll matters that arose so I could concentrate on the business expansion itself. I have found Michael and his team to be very professional, highly efficient and most diligent in their conduct. Their professional fee is reasonably priced and I can safely say that engaging their services has been one of the most effective decisions I have made thus far.
Postmistress, Barna and Fr Griffin Road POs
Have a look at our latest video on the benefits to businesses of outsourcing their payroll processing
OPTiM Payroll provides a first-class service which has greatly eased the administrative burden of payroll processing for us. Their accuracy and attention to detail gives me the assurance that our employees are paid correctly and efficiently.
I am happy to recommend OPTiM to any company considering the external management of their payroll.
Pádraig Ó Céidigh
Tax relief at the standard rate of income tax (20%) is available for third level education tuition fees which includes the Student Contribution but does not include examination fees, registration fees and administration fees. [Read more…]
SURE (Startup Refunds for Entrepreneurs) is a joint initiative of the Revenue Commissioners and the Department of Jobs, Enterprise & Innovation.
If you are interested in starting your own company, you may be entitled to an income tax refund of up to 41% of the capital funding that you invest in the company under SURE. Depending on the size of your investment you may be entitled to a refund of PAYE income tax that you paid over the six years before the year in which you invest.
The general conditions for SURE are that you must:
- Establish a new company and engage in a qualifying trading activity(s); and,
- Invest money in the new company by way of purchasing new shares; and,
- Have had mainly PAYE income in the previous four years (This would include a person currently in PAYE type employment, an unemployed person, a person recently made redundant or a retired person); and,
- Take up full-time employment in the new company either as a director or an employee
Further information is available at www.sure.gov.ie
Employers should note that the Revenue Commissioners have issued new tax credit certificates in recent weeks for certain employees. [Read more…]