Please note that our EWSS upgrade is now available. This includes a July/August Sweepback utility. It is important that you ensure you have registered for EWSS using Manage Tax Registrations (under Other Services) in the main ROS screen. EWSS registrations cannot be backdated. The qualifying criteria for claiming EWSS can be found here.

Oct 2013


October tax tip - Investing in a pension

The average life expectancy in Ireland is rising; people are living longer so it’s important to plan for your future.  If a pension scheme or product is approved by the Revenue Commissioners you will receive Tax Relief on contributions to it.  By contributing some of your salary to a Pension Scheme those earnings are not subject to PAYE.  Tax Relief is allowed at the marginal rate of tax so if you pay tax at 41% you will get tax relief at 41% i.e. if you pay tax at 41% it will cost you €59 to contribute €100 to your pension

AVC refers to any Additional Voluntary Contribution made to a Pension Scheme and would be worth considering for any bonus received to save paying 41% tax on it!

Pension contributions are subject to USC & PRSI.

The maximum allowable contributions for tax purposes are as follows:

Age                                                      % of Net Relevant Earnings

Under 30 years of age                         15%

30-39 years of age                               20%

40-49 years of age                               25%

50-54 years of age                               30%

55-59 years of age                               35%

60 years of age & over                        40%

It’s never too early to start a pension, think about it today.  For help on processing pensions please refer to the online help file for Thesaurus Payroll Manager/BrightPay or telephone the support team who will be happy to assist you.

Posted byAudrey MooneyinPayroll Software