Payback Version 2023.01

PMOD Changes

  • No PAYE Modernisation changes

Budget Changes

PAYE
The new PAYE rates are:

PAYE Rates Cut Off Points Tax Credits
2022 2023 2022 2023
Annual 36800 40000 1700 1775
Month 3067 3334 142 148
Week 708 770 33 35

PRSI
Class A rate of employer PRSI is increasing from €410 to €441 per week. The tapered employee credit of €12 per week applies to earnings up to €424 (no longer including class AL)

 

USC

The standard rates of Universal Social Charge are:
2018 Rate 2019 Rate 2020 Rate 2021 Rate 2022 Rate 2023 Rate
On the first €12,012 0.5% On the first €12,012 0.5% On the first €12,012 0.5% On the first €12,012 0.5% On the first €12,012 0.5% On the first €12,012 0.5%
On the next €7,360 2% On the next €7,862 2% On the next €8,472 2% On the next €8,675 2% On the next €9,283 2% On the next €10,908 2%
On the next €50,672 4.75% On the next €50,170 4.5% On the next €49,560 4.5% On the next €49,357 4.5% On the next €48,749 4.5% On the next €47,124 4.5%
On the balance 8% On the balance 8% On the balance 8% On the balance 8% On the balance 8% On the balance 8%

 

The Reduced rates of Universal Social Charge are:
2011 & 2012 2013 & 2014 2015 2016 2017

2018 to 2023
Individual aged 70 years or over. Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less. Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less.
Individuals who hold a full medical card (regardless of age). Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less. Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less.
2% - on the first €10,036 2% - on the first €10,036 1.5% - on the first €12,012 1% - on the first €12,012 0.5% - on the first €12,012 0.5% - on the first €12,012
The 4% rate applies to all income over €10,036 The 4% rate applies to all income over €10,036 The 3.5% rate applies to all income over €12,012 The 3% rate applies to all income over €12,012 The 2.5% rate applies to all income over €12,012 The 2% rate applies to all income over €12,012

Emergency Tax

Like pervious years, employees on emergency tax with a PPS Number will not receive any tax credits. They will also only get 4 weeks or one month of standard rate cut off point. 

Employer PRSA contributions from 1 Jan 2023

For Payments prior to 1 Jan 2023, while the employer contribution may be considered a taxable BIK – a tax charge only arises where the combined contributions (employee + employer) exceeds the age-related limits, and any tax due is payable through self-assessment, not payroll.

From 1 Jan 2023, there is no charge to BIK on Employer contributions to PRSAs. Therefore, the charge to tax as BIK that would previously arise under section 112 by virtue of section 118 where the employer makes a contribution to a PRSA, no longer applies. PRSI is only charged through the PAYE system on emoluments that are taxed under PAYE. As the employer PRSA contributions would no longer be a taxable BIK, they are not taxed under PAYE and therefore not chargeable to PRSI under the PAYE system.

Note that none of the above has any impact on how PRSAs are operated in Payback. This explanation is included in the release notes for reference only.

Statutory Sick Pay (SSP)

Statutory Sick pay has been introduced from 1 Jan 2023

Entitlement:

  • Where someone changes job - entitlement is granted per employment, provided they meet the other eligibility criteria (i.e., minimum service)
  • The number of SSP days for 2023 will be 3.
  • Maximum Daily rate will be 70% of the employee's daily rate or €110, whichever is the lower.

Taxation:

  • Sick pay is taxable and should be included in gross pay
  • The employee's normal PRSI class used for SSP payments

A new SSP (sick pay) Element type is now available. Selecting this will allow the user to record statutory sick pay.

Payback Version 2023.02

New Changes

New BIK Rates

The new rates for 2023 including the 8% van rate and electric car rates.

RPN Import for prior years

Following Revenue disabling importing RPNs for years prior to 2023, the RPN year dropdown is now restricted to 2023