Some information as we end our financial year
Just a few reminders as we reach the end of each year
Don’t forget the Small Business Exemption is up to €1500 tax free Voucher to staff and this includes Proprietary Directors
These Vouchers must be returned to Revenue with the Payroll so please let your payroll operator know these and they can return it for you (ERR). From 1st January 2025, the introductory phase is over, and Revenue will be doing inspections to ensure compliance with ERR. The Reporting of non-taxable payments to Revenue through payroll.
The national minimum hourly rate will rise by 80c and become €13.50 on 1 January 2025 for over 20 years old– it would be good idea to look at all staff rates and make sure of the staff ages. A practical tip for staff under 20 years old is to email the Table to staff and ask the staff member to alert you when they reach the next rate band based on age.
Hourly Rate (Inclusive of Gross wage and Bonus/shift premium) based on age bracket
Aged 20 and above is €13.50
Aged 19 is €12.15
Aged 18 is €10.80
Aged under 18 is €9.45
The National Minimum wage would you believe is planned to continue to gradually rise until 2026. In 2026, The National Living Wage will replace the National Minimum Wage and will be set at 60% of Ireland's average income for a full-time worker. Employers will need to prepare for these changes in pay for staff.
If issuing Bonuses or Vouchers at Christmas, it is a good idea to talk through 2025 objectives and goals at the time they are receiving the reward.
Great time to collect all 2024 medical expenses and have them ready to claim back the 20% for next year.
Auto enrolment is kicking in during 2025 – no start date confirmed but September has been mentioned – no harm to read up on this (Revenue have promised that it will be seamless) https://www.gov.ie/en/publication/2c7b3-automatic-enrolment-retirement-savings-system-for-employees/
The Main elements from my reading of the Auto Enrolment information are -it will be for employees between 23 Years old and 60 Years old and Employees earning under €20,000 will not be in this scheme, It will apply to employees that are not members of a occupational pension scheme. There will be an opt out option for employees after the 6 months have passed.
There is an indication that the Employee and Employer contribution will go through Software and will come in with the Tax credits and be collected through the PSR System already in place for Taxes – Calculations and correct set up will be very important when this comes in.
Heather Humphreys has announced a further extension in the implementation of the proposed pensions auto-enrolment scheme to 30th September 2025. There is a lot of information that needs to be clear, so Employers and Employees understand the scheme.
BIK – Vehicles - The relief of €10,000 to the original market value (OMV) of a vehicle has been extended to 31st December 2025. This means when calculating BIK on allowable vehicles – €10,000 can be taken off the OMV when applying the calculation
The €35,000 OMV reduction for electric vehicles (EVs)in place at the moment has been extended for 2025.
The 4,000 km reduction in the highest mileage band has been extended to 31st December 2025
The Maternity Protection (Amendment) and Miscellaneous Provisions Bill 2024 introduces a provision allowing mothers who need treatment for a severe illness to delay their maternity leave for a specified period of time.
The Statutory Sick Days set to go from 5 Days in 2024 to 7 Days in 2025 but it is still at 5 days as it hasnt been signed into effect yet - This is the National Sick Pay Scheme to pay at 70% rate as per legislation - a general right to statutory sick pay in Ireland.
2024 (Year 2)
5 employer-paid sick leave days per year
2025 (Year 3)
5 employer-paid sick leave days per year (could move to 7 when government decide)
2026 (Year 4)
10 employer-paid sick leave days per year
The employee must present a medical certificate and they must have completed 13 weeks’ service to avail of statutory sick pay.
Employers will pay sick pay at a rate of 70% of an employee's wage, subject to a maximum limit of €110 per day. There will be no top-up of salary by the State
Parents Leave has increased from 1st August 2024 – this has been an amendment to the Parents Leave and Benefit Act 2019 which means ha the leave went from 7 weeks to 9 weeks leave. This leave can be taken during the first 2 years of a child’s life and is unpaid by the employer – the employee can claim this from the department of social protection
As always feel free to email or call Karen if you need any more information.
