Changes to PRSI and USC for 2013

    Budgetary Changes affecting PRSI & USC in 2013

    There have been a number of changes that have been introduced in the Budget with regards to PRSI. From the 1st of January 2013 employees’ who are liable for PRSI will no longer have the weekly allowance available to them of €127. Employees that are modified PRSI contributors will no longer have the weekly allowance available to them of €26. As a result of these changes all employees that are liable for PRSI will now have to pay an extra €5 per week for PRSI or €264 each year.

    Also from the 1st of January 2013 the minimum PRSI contribution figure for self-employed people will increase from €253 to €500.

    In 2013 people that are liable for a modified PRSI rate (Class B,C,D) arising from income that has been generated as a result of a trade or profession and any other unearned income will all be subject to PRSI.

    The range of PRSI will also be broadened in 2014 to allow people to be liable for PRSI on any unearned income such as rental income, dividends, investment and interest on deposit/savings.

    No changes were introduced to the current rates of both the employee and employer PRSI

    The team at Paycheck Plus are happy to assist you with any questions or queries that you may have in respect of any of the changes to PRSI & USC for 2013. Contact our PayrollTeam@paycheckplus.ie or call us on +353 (0)41 686 3000.

    Universal Social Charge

    There has been no change introduced to the Universal Social Charge exemption rate. At present the annual Universal Social Charge exemption is €10,036. Where an individuals income exceeds the universal social charge exemption the following rates will apply.

    People aged under 70 (2012)

    Rate of   USC Income   band
    2% Up to   €10,036
    4% Between   €10,036 and €16,016
    7% Above   €16,016

     

    Medical card holders and people aged over 70   (2012)

    Rate of   USC Income   band
    2% Income   up to €10,036
    4% All   income over €10,036

     

    The team at Paycheck Plus are happy to assist you with any questions or queries that you may have in respect of any of the changes to PRSI or in relation to USC. Contact our PayrollTeam@paycheckplus.ie or call us on +353 (0)41 686 3000.

    Topics: Blog, News, PRSI

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