FAQ FAQ on Income Levy

Over 65's

Hi

I maintain a small payroll and I'm currently making changes to take account of Income Levy.

I know (from reading this FAQ) that I should treat somebody who turns 65 turning the year as being over 65.

When should the employee be 65 by to be considered over 65.

Is it 65 before the beginning of the payroll year.
Is it 65 before the beginning of the calender year.
Is it 65 before the beginning of the revenue's tax year?

Thanks

Paul
 
Towger said:
If you can formulate the exact questions on Rental Income. I can sent it into the section in Revenue dealing with the Levy's implementation.
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I believe that this whole thing is madness, that it will take Revenue another 6 months to figure it out and meantime maybe the whole thing will be scrapped and we'll have a new budget so it might be better to wait till nearer the tax return deadlines of next year. The guys in Revenue must be going mental with this.
 
A new website for Revenue. I hope they have improved the search function. It would help if the titles of documents would have a higher priority than the number of times the terms occur in them.

A new Version 4 Levy FAQ is now available at http://www.revenue.ie/en/practitioner/law/income-levy.pdf

Unfortunately some of the new changes don't make sense:

Guidelines on the P35 declaration will be changed to reflect inclusions in the relevant
fields.
P35 L
Two additional fields per employee:
1. Gross Pay (including Superannuation)
2. Total Income Levy
P35 LT
Two additional fields per employee:
1. Gross Pay (including Superannuation)
2. Total Income Levy
P35 LF
Two new Parking Levy Fields:
1. Total number of employees that contributed to Parking Levy Fees
2. Total amount contributed to Parking Levy Fees
Three new Income Levy fields:
1. Total Income Levy at 1%
2. Total Income Levy at 2%
3. Total Income Levy at 3%
Form P60 will also be revised in 2009
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Why include "Gross Pay (including Superannuation)", this has nothing to with the amount of Earnings the Income Levy is due on. The likes of social warfare payments etc through the payroll will throw out the two values.
 
1. Total Income Levy at 1%
2. Total Income Levy at 2%
3. Total Income Levy at 3%
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Why? - what's the point in recording this?
A new Version 5 (15 Dec 2008) Levy FAQ is now available
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Simply outrageous. When is version 6 coming out? jan 4th?
 
Why? - what's the point in recording this?
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There is no point. The values are going to be recalculated if the employee has 52 weeks of employment. The only reason I can think of is to make it easier for the civil service to come up with the answer to the Dail question "How much income levy was deducted at 1, 2, 3%"
 
Towger said:
A new Revision 6 (17 Dec 2008) Levy FAQ is now available at http://www.revenue.ie/en/practitioner/law/income-levy.pdf
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From the above:

"4.7 Are social welfare payments added to income to determine whether the income levy will be charged or not? ​

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Social welfare payments are exempt from the levy. "[/FONT]

[FONT=Times New Roman,Times New Roman]So are Social Welfare Payments added to income to determine whether the income levy will be charged or not? I know that welfare payments are exempt from the levy, but the reply given doesn't actually answer the question which was asked.[/FONT]
[/FONT]
 
Am I right in thinking that: if one of a jointly assessed married couple earns above the minimum wage and the other earns the minimum wage, the one on the minimum wage is exempt from the 1% levy.
 
michaelm said:
am i right in thinking that: If one of a jointly assessed married couple earns above the minimum wage and the other earns the minimum wage, the one on the minimum wage is exempt from the 1% levy.
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2.15 are married couples who are jointly assessed allowed double the threshold limits?
[font=times new roman,times new roman]
no. The thresholds apply to each spouse individually and cannot be combined where one spouse is below the thresholds and the other above.
[/font]​
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[font=times new roman,times new roman]​
[/font]
 
Thanks. I understand that the limits can't be combined. I just want to be clear that the earner who is on the minimum wage (jointly assessed with a spouse earning more and subject to the levy) is exempt. I think that is the case but the FAQ doesn't seem to specifically, directly address that.
 
Hello there,

I'm paid in areas, my payslip received last Thursday, 8th January 2009 covers a working period in December 2008. However, the payroll department did apply the 1% income levy.
I think this is incorrect. Does anybody have a similar experience or/and idea how to tackle this one?


Thanks,

cologneboy

> See updated FAQ
 
I read in today's Irish Mail on Sunday that married pensioners who are in receipt of an occupational pension are only being exempted up to €20000, not €40000.

According to the Mail.."The Revenue Commissioners have instructed Government Depts and Private firms to treat all retirees as single people.... Revenue stated that they would refund pensioners in December 2009 if any mistakes are made."

Makes it simple for payroll departments who don't have records of marital status for their staff, but a bit harsh on pensioners, I would have thought!
 
If you take a drop in wage, will the 1% levy be adjusted to your lower earnings.

> See updated FAQ


Thanks. TonyD
 
gipimann said:
According to the Mail.."The Revenue Commissioners have instructed Government Depts and Private firms to treat all retirees as single people.... Revenue stated that they would refund pensioners in December 2009 if any mistakes are made."

Makes it simple for payroll departments who don't have records of marital status for their staff, but a bit harsh on pensioners, I would have thought!
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Revenue seem to have taken this decision them selves. AFAIK there was no lobbying from employers or payroll providers for it to work this way.
 
roker said:
Does social welfare exemptions refere to state pensions ?
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From Revenue's FAQ 2.11
The income levy is not charged on contributory or non-contributory State pensions. This means that a pensioner aged 66 or over and single can have income of almost €32,000 p.a. before they are subject to the income levy (€11,976 State pension and €20,000 occupational pension). A pensioner married couple aged 66 or over can have income of almost €63,000 p.a. before they are subject to the income levy (€22,703 contributory State pensions and €40,000 occupational pension).
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