2014 Payroll Budget Changes
The following changes are due to take effect on 1 January 2014 and may affect you as an employer or as an employee.
Illness Benefit
The number of waiting days for Illness Benefit payable by the Department of Social Protection has been increased from 3 days to 6 days. Employees will not be entitled to Illness Benefit for the first 6 days of any period of illness; this will give rise to additional cost to employers who operate a sick pay scheme.
Employer’s PRSI
The reduced rate of 4.25% Employer’s PRSI is due to revert to 8.5% from 1st January 2014. In July 2011 Employer’s PRSI for those earning less than €356 per week was halved, the rate will be restored to 8.5% from the 1st of January 2014.
Example
For an employee earning €350 per week the Employer’s PRSI is currently €14.88, from the 1st of January this will increase to €29.75
Local Property Tax (LPT)
A half year charge for LPT applied in 2013. From 2014 a full year’s charge will apply.
Benefit-in-Kind
The benefit-in-kind rate applicable to company motor vehicles will change from miles to kilometres with effect from 1st January 2014.
|
Business travel lower limit 2014 (Kilometers) |
Business travel upper limit 2014 (Kilometers) |
Percentage of original market value |
Business travel lower limit 2013 (Kilometers) |
Business travel upper limit 2013 (Kilometers) |
Percentage of original market value 2013 |
|
– |
24,000 |
30% |
– |
24,135 |
30% |
|
24,000 |
32,000 |
24% |
24,136 |
32,180 |
24% |
|
32,000 |
40,000 |
18% |
32,181 |
40,225 |
18% |
|
40,000 |
48,000 |
12% |
40,226 |
48,270 |
12% |
|
48,000 |
– |
6% |
48,271 |
– |
6% |
Pension Related Deduction (PRD)
Budget 2014 didn’t introduce any changes to the PRD rates or thresholds however, under current legislation the 5% rate, which applies to annual earnings between €15,000 and €20,000, will be reduced to 2.5% from 1st of January 2014.
