2019 Payslip Changes

by Administrator / Thursday, 20 December 2018 / Published in Payslip Changes

Below we detail the changes that will occur and how they will affect your payslip in 2019. The Budget was announced on the 9^th of October 2018 and again this year there have been some favourable results but there are also some changes that tax payers may not be aware of.

Income Tax

The standard rate Income Tax is being increased by €750. This means an increase from €34,500 to €35,300 for single individuals and from €43,550 to €44,300 for married couples with only one income. This effectively means that you will be chargeable to the standard rate of tax 20% up to this amount.

Universal Social Charge

There have been some marginal changes to the USC rates for the year 2019. Below are the USC chargeable rates for the year 2018:

€0 – €12,012 @ 0.5%
€12,012.01 – €19,874 @ 2% – Increase in threshold
€19,874.01 – €70,044 @ 4.5% – Decrease in percentage
€70,044.01 + @8%

Medical card holders and individuals over the age of 70 whose total income does not exceed €60,000 will be required to pay a maximum USC rate of 2.

Home Carers Tax Credit

The Home Carer tax credit will increase to €1,500 which is an increase of €300. The credit is awarded when a married couple are jointly assessed and one spouse is in the home caring for one or more dependants and whose income is below €7,200.

The Earned Income Tax Credit

The Earned Income tax credit will increase to €1,350. This is only relevant to tax payers with self-employed or professional income and for business owners/managers who are ineligible for the PAYE tax credit.

Minimum Wage

The minimum wage is being increased from the 1^st of January and will be €9.80 per hour for an adult employee.

Changes to your Payslip which were not announced in the Budget

Break in Employment

If you plan on having a significant break in employment in the year or only work for part of the year and believe that you will earn less than €13,000 then you will be exempt from paying USC for the tax year.

We would always recommend getting your taxes checked each year to ensure that you paid the correct amount of tax in the previous year and to claim any refunds that you may be entitled to.

Hope we have shed some light on the changes that you should expect for 2019 and Happy Christmas!