Budget Speech Tax Updates for 2022
In the annual budget speech held on 12 October 2021, the minister of finance announced several changes for the 2022 tax year (effective 1 January 2022). The changes most relevant to payroll are updates to emergency tax cut-off points, USC rates, PRSI rates and an extension to the EWSS.
Most of these updates will be automatically incorporated into the RPNs for employees for 2022. However, some changes required updates to the SimplePay system and our development team has been hard at work to ensure that all payslips from 1 January 2022 apply these changes without any action required on your part.
Notable changes to PAYE, USC, PRSI and EWSS are as follows:
PAYE
The emergency tax cut-off points will increase:
- Weekly - From €679 in 2021 to €708 in 2022.
- Fortnightly - From €1,358 in 2021 to €1,416 in 2022.
- Monthly - From €2,942 in 2021 to €3,067 in 2022.
More information on tax bases can be found on our help site here.
USC
An update on the threshold of the 2% rate will increase from €20,687 to €21,295, resulting in a total increase of €608.
More information on USC can be found on our help site here.
PRSI
The weekly threshold for the higher rate of employer PRSI will be increased from €398 to €410. This will ensure that an employer will pay the reduced rate of employer PRSI of 8.8% in respect of an employee working a 39 hour week and who is paid the national minimum wage.
More information on PRSI can be found on our help site here.
EWSS
The EWSS program will once again be extended beyond the original end date of December 2021. The new iteration of the EWSS will be applied in a graduated form and introduced in stages towards the new end date of April 2022.
More information on the EWSS updates can be found on our help site.
Should you have any questions regarding SimplePay or any of our services, please feel free to contact support@simplepay.ie for assistance.
Keep well and stay safe.
Team SimplePay