PRSI & USC Changes from 01st February 2020

Within the last 7 days we received 2 notifications, one from the Department of Employment and Social Affairs and another from the Department of Finance and Public expenditure and Reform.

Both announcements reflect changes to the Quantum Payroll Calculation for 2020 as a result of the increase in the minimum wage to €10.10 which will come into effect on the 1st February 2020 and affect both the PRSI and USC calculation.

In terms of PRSI the Class A weekly threshold of €385 will increase to €395 from 1 February 2020. This requires a programming change.

In terms of the USC the changes will be implemented through changes in the USC bands.

The amendment to section 531AN of the Taxes Consolidation Act, 1997 that will be included in Finance Bill 2020 will apply as follows:


Part of aggregate income Rate of USC
The first €12,012 0.5%
The next €8,472 2%
The next €49,560 4.5%
The remainder 8%

Quantum Payroll will issue an update to reflect these changes, we would ask all users to implement this update prior to running February 2020 payrolls. This version is currently in test therefore we expect this to be available within the next few days.

Kind regards

Michael Alken

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