As we get closer to the new year, it is crucial to stay abreast of the latest changes in the tax landscape that will impact you and your payroll. Following the Budget 2024 speech, the government has introduced several measures to improve the tax system. These measures include updates to the Standard Rate Cut-Off Points for income tax, USC rate bands, PRSI, and increased Personal, Employee, and Earned Income Tax Credits. The Finance Minister also announced changes to the national minimum wage and leave entitlements.

While most of the necessary updates for the RPNs of employees for 2024 will be done automatically, some changes will require an update to the SimplePay system. Our development team is working diligently to reflect these changes without any action needed on your part.

The noteworthy changes are detailed below:

PAYE

The Standard Rate Cut-Off Points for Emergency Basis of tax have been increased as follows:

• Weekly - From €770 to €808 in 2024
• Every 2 weeks - From €1,539 to €1,616 in 2024
• Monthly - From €3,334 to €3,500 in 2024
• Every 4 weeks - From €3,077 to €3,231 in 2024

More information on tax bases can be found on our help site here.

These changes have been incorporated into our system for 1 January 2024, ensuring a seamless transition without any action needed on your part.

USC

USC information, crucial for payroll, is supplied by the RPN. The Key changes for 1 January 2024 include:

• Exemption Threshold: Remains unchanged at €13,000.
• The 2% USC band will be increased by €2,840, from €22,920 to €25,760.
• The rate for the 4.5% USC band will be reduced to 4%, which will apply to income within the range of €25,760.01 to €70,044.
• 8% USC Rate: Continues to apply for 2024 under the Emergency Basis.

More information on USC can be found on our help site here.

PRSI

It was announced in the Budget 2024 that all PRSI contribution rates will be increasing by 0.1%, effective from 1 October 2024.

More information on PRSI can be found on our help site here.

National Minimum Wage

The National Minimum Wage will increase from €11.30 to €12.70 per hour in respect of hours worked starting 1 January 2024.

As we navigate the complexities of the new tax year, rest assured that SimplePay has your back, ensuring compliance and efficiency. Stay tuned for more updates and insights throughout the new year.

Should you have any questions regarding SimplePay or any of our services, please don’t hesitate to reach out to our Customer Support team at support@simplepay.ie. 

If you aren’t a SimplePay user yet but are interested in simple and efficient payroll software, why not sign up for a free 30-day trial? You can sign up by clicking here.

Keep well,

Team SimplePay