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Legislation for the 2022 tax year

Created on  | Last modified on  Highlight Matches

Summary

This guide provides the key changes to legisation for 2022 tax year, as used in Sage Payroll.

Description

Employment Wage Subsidary scheme (EWSS) and Employment Wage Subsidy Scheme for Public Health Restrictions (EWSS-PHR)

All payroll related Covid-19 subsidy schemes have now ended, with the last of them, the extended scheme EWSS-PHR, ending on the 31 May 2022.

You can follow the steps in this handy guide to Disable all employees from Covid-19 subsidy schemes.


National minimum wage (NMW)

From 1 January 2022, the NMW rate increases from €10.20 to €10.50. Our useful guide tells you more.


Pay related social insurance (PRSI)

The PRSI upper threshold for AX increases from €398 to €410 and the lower threshold for AL increases from €398.01 to €410.01.


Pay as you earn (PAYE)

Standard Rate Cut Off Point (SRCOP) increases from 35300 to 36800 for a single person and tax credits increase from 3300 to 3400.

The SRCOP applicable under the Emergency Basis of tax increases from €679 to €708 per week, from €1,358 to €1,416 per fortnight and from €2,942 to €3,067 per month. 


Universal Social Charge (USC)

The second rate 2% upper threshold increases from 20,687 to 21,295.


Parent's leave

This increases to 7 weeks per year.


What do I need to do in Sage Payroll?

Legislation changes

The legislation changes are included in your payroll year end update, so all you need to do is install it. It includes:

  • National minimum wage
  • Emergency tax SRCOP
  • Extension to EWSS
  • PRSI threshold changes

 NOTE: For full details about legislation changes for 2022, you can view Revenue's Budget 2022 PDF guide. 


Changes to employees

You must import these via your 2022 tax year RPNs. These are issued by Revenue and, if applicable, include the following:

  • USC
  • PAYE tax credits

You can then start processing your payroll in Sage Payroll 2022.