Update on Budget 2012 - The Impact on Employers

Deirdre Crowley writes:

This article is an overview of Budget 2012 from Crowley Solicitors in connection with Deloitte & Touche.

1. Introduction

Budget 2012 introduces a number of significant changes for employers and employees alike. For example:

• the standard rate of VAT will increase from 21% to 23%;
• a charge to employee PRSI will apply to rental income, dividends and other investment income from 2013, and
• full PRSI will now be payable on an employer's pension contributions to an employee's pension fund.

This article looks at the implications of another significant development for employers which is the reduction of the redundancy rebate from 1 January 2012 and considers the options