The purpose of this eBrief is to clarify for employers and payroll practitioners how employer contributions to an employee’s Personal Retirement Savings Account (PRSA) are to be treated for Income Tax, PRSI and USC purposes. Benefit-in-kind (BIK) An employer contribution to an employee’s PRSA is treated as a taxable BIK for the employee. However, for…

Read More »

Finance (No.2) Act 2011 introduced a second reduced VAT rate of 9% to apply in respect of supplies of certain goods and services for the period 1 July 2011 to 31 December 2013. The 9% rate applies to certain goods and services previously liable at the 13.5% rate, including restaurant and catering services; hotel and…

Read More »

As part of the Minister for Finances drive to increase employment, from 1st July 2011 the rate of employers PRSI will be cut in half. The current rate is 8.5% on gross wages. This will apply to gross wages only up to €356.00 per week. This effects employer pay costs only and not employees and…

Read More »

Legislative changes to give effect to the taxation changes arising from the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 are contained in Finance (No. 3) Bill 2011. The Bill was published on 9th June 2011 and it is expected to be enacted in July once debated and passed by both Houses…

Read More »

Please note that the Department of Social Protection have recently clarified their position in relation to the above. Previously it was held that as an Employers contribution to a PRSA on behalf of an Employee would be regarded as a Benefit in Kind and therefore the Employee would have to pay PRSI on the value…

Read More »