A New Year – You’re Still Compliant

With the new tax year underway since 1 January, we’d like to reassure you that our system has been updated to ensure that you are always compliant with legislation. There is no need to do any manual updates as in other payroll systems – simply continue processing payslips into the new tax year. Your payroll will automatically meet all the requirements for the 2018 period, as announced in the 2018 Budget on 10 October 2017. If you are still processing payroll for the 2017 tax year, the old tax rules will still be used, as you’d expect.

Here are some of the most important changes that you may see in your payroll for the coming year:

Income Tax:

The standard rate income tax band for all earners increased by €750. This will be reflected in your employees’ P2Cs.

USC Rates:

The 2.5% rate of USC was reduced to 2% and the 5% rate of USC decreased to 4.75%

PRSI Rates:

The National Training Fund Levy (NTFL), collected alongside Employer PRSI for Classes A and H, increased by 0.1%. This means that the total employer PRSI contribution rates for Class A employees increases from 8.5% to 8.6% for employees earning €38 – €352, and from 10.75% to 10.85% for employees earning in excess of €376.

When you need to do your filing, the correct period will automatically be used and the relevant documents will be generated. For more information, please see our help site.

We will soon send out a year-end filing guide to assist you with submitting your P35 to Revenue and issuing P60s to your employees. Alternatively, you can consult our help site for more information.

If you have any questions relating to the above changes, you are welcome to contact us to assist you with these queries.

Team SimplePay