The Finance Bill 2024 was published on 10th October 2024, introducing key legislative measures following the announcements in Budget 2025. This Bill clarifies and expands on specific payroll provisions that will directly impact employers. Our Payroll and Pensions teams break down the crucial areas of the Bill and how they will affect your business operations.

Our Payroll team have examined the detail of the Bill and have set out below changes that have already come into effect and what changes employers will have to implement in 2025. 

LOOKING AT THE REMAINDER OF 2024 

Enhanced Reporting requirements: 

Employers are required to report details of certain expenses or benefits made to employees and directors. 

What Information do you need to report? 

Phase 1 will apply to any payments you make to an employee or director under the categories listed below. 

• Small benefit exemption 

You must submit details of the date paid and value of this benefit.

• Remote working daily allowance 

When you are paying a Remote Working daily allowance, you must report the: 

• total number of days 
• amount paid and 
• date paid 

• Travel and subsistence 

You must submit the following travel and subsistence items, including the date paid and amount of each payment, for: 

• travel vouched 
• travel unvouched 
• subsistence vouched 
• subsistence unvouched 
• site-based employees (including 'Country money') 
• emergency travel 
• eating on site 
• advance payment 

• PRSI Increases 

0.1% increase in all PRSI rates for all PRSI Classes from 1 October 2024, with the exception of those classes or subclasses which have a Nil liability. 

• Gender Pay Gap Reporting: 

Requires employers to report information on pay by references to gender to determine if a gap exists. 

Who needs to report:

• 2024 - Employers who have more than 150 employees 
• 2025 - Employers who have more than 50 
• Employers with less than 50 employees will not to need to provide a report 

What must they publish:

• Details of the GPG 
• The employers reasons for the GPG in their opinion 
• Measures being taken or proposed by the employer to eliminate/reduce the GPG 
• This required information must be published on or before December of each year 
• Findings will be published on the employers website, and must be available to both employees and the public

WHAT YOU NEED TO KNOW FOR 2025: 

The below changes come into effect from 1st January 2025. 

• Minimum Wage: 

Will increase from €12.70 per hour to €13.50 per hour 

• BIK 

The €10,000 temporary reduction on the OMV of company vans and category A to D company cars will be extended to 31st December 2025. 

For electric vehicles the additional temporary reduction of €35,000 will also remain in place giving a total reduction of €45,000. 

• Small Benefit Exemption: 

The limit will be increased from €1,000 to €1,500 and a number of benefits can be awarded increasing from 2 to 5 not exceeding the €1,500. 

• Personal Taxes: 

The following tax credits will increase by €125 to €2,000:

• Personal tax credit 
• Employee tax credit 
• Earned income tax credit 

Other tax credits will also increase: 

• Blind tax credit by €300 to €1,950 
• Dependent relative credit, by €60 to €305 
• Home carer credit, by €150 to €1,950 
• Incapacitated child credit, by €300 to €3,800 
• Single person child carer credit, by €150 to €1,900 

The rent tax credit is increased for 2024 and 2025, by €250 to €1,000. 

• Universal Social Charge (USC) 

The 4% rate of USC will be reduced to 3%. 

The entry point for this rate will increase by €1,622, in line with the increase to the national minimum wage, so it will apply to income between €27,382 and €70,044.

• Standard Rate Cut-Off Point (SRCOP): 

The standard rate tax band (the amount you can earn before you start to pay the higher rate of tax) will be increased by €2,000 to €44,000 for a single person, with proportionate increases for married couples and civil partners. 

• PRSI: 

Further 0.1% increase which will commence from October 2025.

'My Future Fund':  Auto-Enrolment Retirement Savings System 

The Finance Bill, published on 10 October 2024, includes more information on the Auto-Enrolment Pension Scheme, now called 'My Future Fund".  This has given some clarity to how the Scheme will work.  It has also given the start date of the scheme as the 30th September 2025. See detailed article here.

How can RBK help? 

If you wish to discuss any aspect of payroll reporting please reach out to our Payroll Team: 

• Rose Bracken, Payroll Solutions Director, (090) 6480600
• Mary Byrne, Payroll Solutions Senior Manager, (060) 6480600

Disclaimer: While every effort has been made to ensure the accuracy of information within this publication is correct at the time of going to print, RBK do not accept any responsibility for any errors, omissions or misinformation whatsoever in this publication and shall have no liability whatsoever. The information contained in this publication is not intended to be an advice on any particular matter. No reader should act on the basis of any matter contained in this publication without appropriate professional advice.