Indigo: Primed and Ready for the New Year

Starting 2022 in line with the last Budget

When we said we’ve got your back, we meant it! As another year draws to an end and everyone gets ready for some seasonal festivities, Shireburn’s Indigo is on hand to make the transition to the new year run smoothly.

Here are the ways Indigo will help you comply with the measures announced in the Budget for 2022.

Budget 2022 MeasuresIndigo’s Approach
Part-time Tax Reduction from 15% to 10%
  • The standard part-time tax rate has been set to automatically switch to the new rate as of 1st January 2022, without users having to do anything on their end.
  • The tax codes and descriptions in our system have been updated for more clarity.
First €10,000 Overtime Taxed at 15% for non-managerial employees with an annual basic salary up to €20,000
  • We have updated the support file in the pay item taxation profile to have a value-based capping of €10,000.
  • There is a new field for value in the Employee Previous Main Employment screen.
SSC rates updated.
  • The new rates for 2022 will be applied automatically in Indigo on 1st January 2022.

Part-time Tax Reduction from 15% to 10%

In the 2022 Budget, the government gave part-timers news of a tax reduction from 15 percent down to 10 percent. Indigo has been programmed to apply this new tax rate as of 1st January 2022, getting on with the extra work so you can get on with your payrolls without missing a beat.

We have also taken this opportunity to rename the part-time tax codes and update their descriptions to make selecting the correct tax rate easier for you.

Automatic switch to a value-driven Overtime Concession

Once again we’ve made sure Indigo will take care of your overtime taxation needs, thanks to the updated support file in the pay item taxation profiles. This now caters to the new value-based overtime concession and will kick in automatically on 1st January 2022 without you having to lift a finger. This means that Indigo will automatically apply the 15 percent tax rate for non-managerial employees with an annual basic salary up to €20,000 up to the first €10,000 worth of overtime worked.

To help you keep up to date throughout our system, we have included new fields for OT Concession Value in the Employees Previous Employment tab, in the sections for ‘Employee Previous Main Employment’ and ‘Employment Details To Date’, for ease of reference.

Updated SSC and maternity fund rates are standing by for 2022

Social security and maternity fund contributions have been adjusted, in line with advice from the Commissioner of Inland Revenue.

At the time of publication the rates in Indigo are correct, as we requested them from CfR; however we strongly recommend you confirm these rates with CfR before calculation of payrolls.

The Cost of Living Allowance (COLA) has also been raised to €1.75 per week, and you can apply this across the board or to selected employees using our helpful Global Basic Pay Adjustments Utility.

Now that we’ve set your Budget-2022 worries to rest, tuck in to a mince pie and raise a toast with us to the new year!