PRSI, Levies and the Universal Social Charge, Finance Act 2012
- LIST OF CHARTS
- 1 PRSI Rates and Income Limits (1983/84–1992/93)
- 1a PRSI Rates and Income Limits (1991/92–1998/99)
- 1b PRSI Rates and Income Limits (1990/00–2006)
- 1c PRSI Rates and Income Limits (2007–2012)
- 2 PRSI Classes
- 3 PRSI Rates for 2012 (Classes A and J)
- 3a PRSI Rates for 2012 (Classes B, C, D and H)
- 3b PRSI Rates for 2012 (Classes E, K, M, S and P)
- 4 Social Insurance Benefits for Each PRSI Class
- 5 Social Insurance Payments
- 6 Social Assistance Payments
- 7 Child Benefit from 1 January 2012
- 8 Family Income Supplement from 5 January 2012
- 9 Social Security Matrix
- 10 Department of Social Protection Information Leaflets
- 11 Department of Social Protection Head Offices
- CHAPTER 1 INTRODUCTION
- 1.1 Historical Background
- 1.2 The Aim of this Book
- 1.3 Administration
- 1.4 Pay Related Social Insurance System
- 1.5 Social Insurance Fund
- 1.6 Social Assistance Payments
- 1.7 Universal Services
- 1.8 Funding of Benefits
- 1.9 Social Welfare Statistics 2010
- 1.10 Legislation
- 1.11 Employment & Training Levy
- 1.12 Health Contribution
- 1.13 The FÁS Apprenticeship Training Levy
- 1.14 National Training Fund
- 1.15 Income Levy
- 1.16 Universal Social Charge
- CHAPTER 4 EMPLOYED CONTRIBUTORS
- 4.0 Employed Contributors
- 4.1 Insurable Employments
- 4.2 Excepted Employments
- 4.3 Modified Insurance
- 4.4 Employment Contributions
- 4.5 Reckonable Earnings
- 4.6 Reckonable Earnings and the Remittance Basis of Taxation
- 4.7 Reckonable Earnings and the Foreign Earnings Deduction
- 4.8 Rates of Contribution
- 4.9 PRSI-Free Allowance for Employees
- 4.10 Earnings Thresholds for PRSI
- 4.11 PRSI Classes
- 4.12 Changes of Class and Recording of Contributions
- 4.13 Employees Over Pensionable Age (currently 66 years)
- 4.14 Employer Job (PRSI) Incentive Scheme
- 4.15 Responsibility for Payment of Contributions of Seconded Employees
- 4.16 Payment of Contributions and Keeping of Records
- 4.17 Lump-Sum Termination Payments
- 4.18 Maintenance Payments
- 4.19 Benefits
- 4.20 Agency Workers
- 4.21 Pension Contributions – PRSI Refunds
- CHAPTER 5 SELF-EMPLOYED CONTRIBUTORS
- 5.0 Self-Employed Contributors
- 5.1 Meaning of “Self-Employed Contributors”
- 5.2 Meaning of “Reckonable Emoluments”
- 5.3 Meaning of “Reckonable Income”
- 5.4 High income earners and the limitation of the use of certain reliefs
- 5.5 Losses
- 5.6 Calculation of “Reckonable Income”
- 5.7 Pension Contributions – PRSI Refunds
- 5.8 Rates of Contribution
- 5.9 De Minimus Exclusion
- 5.10 Credit for Contributions
- 5.11 Excepted Self-Employed Contributors
- 5.12 Preliminary Tax
- 5.13 Married Couples
- 5.14 Regulations Providing for Determination of Contributions Payable
- 5.15 Persons who Commence or Cease to be Self-Employed Contributors During the Course of a Contribution Year
- 5.16 Persons who are both Employed and Self-Employed during the Course of a Contribution Year
- 5.17 Excepted Emoluments
- 5.18 Special Savings Incentive Accounts
- 5.19 Irish Life Policies
- 5.20 Certain Foreign Life Policies
- 5.21 Certain Offshore Funds
- 5.22 Irish Dividends Paid to Non-Residents
- 5.23 Profits or Gains Arising from Dealing in or Developing Residential Development Land
- 5.24 Individuals Liable to Income Tax on Remittance Basis
- 5.25 Non-Resident Directors
- 5.26 Maintenance Payments
- 5.27 Refunds for Self-Employed Contributors who are Insurable for less than 10 Years
- 5.28 Self-Employed Person who becomes Pensionable Age (currently 66 Years) during the Year
- 5.29 Benefits
- CHAPTER 7 HEALTH CONTRIBUTIONS
- 7.0 Health Contributions
- 7.1 Definitions
- 7.2 Reckonable Earnings
- 7.3 Reckonable Emoluments
- 7.4 Reckonable Income
- 7.5 Emoluments
- 7.6 Pension Contributions – Health Levy Refund
- 7.7 Individuals with Reckonable Earnings
- 7.8 Individuals with Reckonable Emoluments
- 7.9 Individuals with Reckonable Income
- 7.10 Preliminary Tax
- 7.11 Married Couples
- 7.12 Income Ceiling
- 7.13 Exemptions from Health Contribution
- 7.14 Deposit Interest
- 7.15 Special Savings Incentive Accounts
- 7.16 Irish Life Policies
- 7.17 Certain Foreign Life Policies
- 7.18 Certain Offshore Funds
- 7.19 Irish Dividends Paid to Non-Residents
- 7.20 Profits or Gains Arising from Dealing in or Developing Residential Development Land
- 7.21 Individuals Liable to Income Tax on Remittance Basis
- 7.22 Miscellaneous Provisions
- CHAPTER 8 BENEFITS-IN-KIND
- 8.1 Background
- 8.2 Reckonable Earnings
- 8.3 Reckonable Emoluments
- 8.4 Reckonable Income
- 8.5 Operation of Arrangements
- 8.6 Income Tax Employment Regulations 2003
- 8.7 Social Welfare (Consolidated Contributions and Insurability) (Amendment) (No. 2) Regulations, 2003
- 8.8 Social Welfare (Consolidated Contributions and Insurability) (Amendment) Regulations 2012
- 8.9 Application of PRSI to Notional Pay
- 8.10 Valuation of Benefits
- 8.11 Excluded Benefits
- 8.12 Salary Sacrifice Arrangements
- 8.13 Minor Benefits
- 8.14 Liability Discharged by Employer
- 8.15 Records
- CHAPTER 9 FOREIGN ASPECTS
- 9.0 Foreign Aspects
- 9.1 European Union Countries
- 9.2 Activities in One Member State Only
- 9.3 Temporary Transfers within the European Union
- 9.4 Activities in Two or More Member States
- 9.5 Exceptions to the EU Regulations
- 9.6 Electronic Exchange of Social Security Information
- 9.7 Transitional Rules
- 9.8 Legal Developments
- 9.9 European Economic Association Countries
- 9.10 Non-European Union Countries with which Ireland has Reciprocal Agreements
- 9.11 Bilateral Agreement with Australia (SI No. 84 of 1992 and SI No. 799 of 2005)
- 9.12 Social Welfare Agreement with Austria (SI No. 307 of 1989)
- 9.13 Social Welfare Agreement with Canada (including Quebec) (SI No. 317 of 1991)
- 9.14 Social Welfare Agreement with Japan (SI No. 527 of 2010)
- 9.15 Social Welfare Agreement with New Zealand (SI No. 57 of 1994)
- 9.16 Social Welfare Agreement with Switzerland (SI No. 206 of 1999)
- 9.17 Social Welfare Agreement with the USA (SI No. 243 of 1993)
- 9.18 Social Welfare Agreement with the Republic of Korea (SI No. 552 of 2008)
- 9.19 Non-EU Countries with which there are no Reciprocal Agreements
- 9.20 Third Country Nationals
- 9.21 Remittance Basis of Taxation
- 9.22 Non-Resident Directors
- 9.23 Irish Dividends Paid to Non-Residents
- 9.24 Special Collection System
- CHAPTER 10 DECISIONS AND APPEALS
- 10.0 Decisions and Appeals
- 10.1 Deciding Officers
- 10.2 Questions to be Decided by a Deciding Officer
- 10.3 Appeals Officers
- 10.4 Procedures for Appeals
- 10.5 Revised Decisions by Chief Appeals Officer and by Appeals Officers
- 10.6 Appeals to the Circuit Court
- 10.7 Appeals to the High Court
- 10.8 Appeals in Relation to Collection and Recovery of Employed and Self-Employed Contributions
- 10.9 Appeals in Respect of Health Contribution
- CHAPTER 13 BENEFITS
- 13.0 General
- 13.1 Rates of Payment
- 13.2 Payments for Dependants
- 13.3 Qualified Adults
- 13.4 Child Dependants
- 13.5 Social Insurance Payments
- 13.6 Qualifying for Social Insurance Payments
- 13.7 Benefit Year and Governing Tax Year
- 13.8 Social Insurance Payments
- 13.9 Child Benefit
- 13.10 Early Childcare Supplement
- 13.11 Early Childhood Care and Education
- 13.12 Respite Care Grant
- 13.13 Family Income Supplement
- 13.14 Social Assistance Payments
- 13.15 Means Test
- CHAPTER 15 INCOME LEVY
- 15.0 Income Levy
- 15.1 Charge to Income Levy
- 15.2 Relevant Emoluments
- 15.3 Relevant Income
- 15.4 Maintenance Payments
- 15.5 Losses
- 15.6 Rate of Income Levy
- 15.7 Excluded Persons
- 15.8 Employers and Income Levy
- 15.9 Income Levy and the Self Assessment System
- 15.10 Married Couples
- 15.11 Preliminary Tax
- 15.12 Refunds of the Income Levy
- 15.13 Share Options and Restricted Shares
- 15.14 The Income Levy and Double Taxation Agreements
- 15.15 The Income Levy - Employees Resident and Working in Non-Double Taxation Agreement Countries
- CHAPTER 16 UNIVERSAL SOCIAL CHARGE
- 16.0 Universal Social Charge
- 16.1 Charge to USC
- 16.2 Relevant Emoluments
- 16.3 Relevant Income
- 16.4 Restrictions on deductions from USC
- 16.5 Maintenance Payments
- 16.6 Losses
- 16.7 Capital Allowances
- 16.8 Rates of USC
- 16.9 Excess Bank Remuneration Charge
- 16.10 Excluded Persons
- 16.11 Employers and USC
- 16.12 USC and the Self-Assessment System
- 16.13 Preliminary Tax
- 16.14 Married Couple
- 16.15 Recovery of unpaid USC
- 16.16 Refunds of the USC
- 16.17 Shares
- 16.18 Foreign Aspects
- 16.19 Regulations
- 16.20 Care and Management
- 16.21 Estimation of USC due
- 16.22 Application of provisions relating to income tax
- 16.23 Property Relief Surcharge
- Appendix I Employer’s Guide to Operating PAYE and PRSI for Certain Benefits
- Chapter 1 Introduction
- 1.1 Introduction
- 1.2 New arrangements
- 1.3 Benefits to which new arrangements do not apply
- 1.4 Use of terms “employees” and “PRSI” in this Guide
- 1.5 Lo-call number for information or assistance
- 1.6 Legal disclaimer
- Chapter 2 Overview of New System
- 2.1 Background
- 2.2 Summary of procedures which apply from 1 January 2004
- 2.3 Small benefits
- Chapter 3 Application of PAYE and PRSI to Benefits
- 3.1 Best estimate
- 3.2 Application of PAYE and PRSI to notional pay
- 3.3 Insufficient money wages or salary in pay period
- 3.4 Employee fails to reimburse employer
- 3.5 Spreading the liability throughout the year
- 3.6 Employer arrangements to discharge employees’ liabilities to tax and PRSI
- Chapter 4 Valuation of Benefits: General
- 4.1 General rule
- 4.2 Payments on behalf of employees – general
- 4.3 Payments of medical insurance/tax relief at source/tax credits
- 4.4 Vouchers
- 4.5 Goods provided by employer
- 4.6 Transfer of assets
- 4.7 Summary table for certain benefits
- 4.8 Specific statutory valuation rules
- Chapter 5 Private Use of Company Cars
- 5.1 General
- 5.2 Ready reckoners
- 5.3 Meaning of “car”
- 5.4 Cars in “car-pools”
- 5.5 Calculation of “cash equivalent”
- 5.6 Three-steps to calculating “notional pay” for company car
- 5.7 Alternative basis for certain employees with low business mileage
- 5.8 Company car not available for full year
- 5.9 Change of car during tax year
- 5.10 Lump sum contributions by employees
- 5.11 End of year adjustment
- 5.12 Car allowances
- Chapter 6 Private Use of Company Vans
- 6.1 Private use of company van
- 6.2 Travel to and from work
- 6.3 Meaning of “van”
- 6.4 Cash equivalent of private use of van
- 6.5 Van with subsequent modifications
- 6.6 Employee makes good to employer
- 6.7 Vans in “van- pools”
- 6.8 Van Allowances
- Chapter 7 Free or Subsidised Accommodation
- 7.1 Employer-owned accommodation
- 7.2 Employee required to live on premises
- 7.3 Rented accommodation
- 7.4 Associated costs
- 7.5 Furniture
- Chapter 8 Free Use of Assets (other than accommodation, company cars or vans)
- 8.1 Calculation of taxable benefit
- 8.2 Examples of calculations
- 8.3 Loan of art objects
- Chapter 9 Benefit of Preferential Loans
- 9.1 Preferential loans
- 9.2 Specified rates
- 9.3 Taxable benefit to which PAYE and PRSI applies
- Chapter 10 Other Benefits
- 10.1 Company shares
- 10.2 Pension contributions
- 10.3 Meals and meal vouchers
- 10.4 Crèche/childcare facilities
- 10.5 Sports and recreational facilities
- 10.6 “En Bloc” payments
- 10.7 In-house medical plans/corporate general practitioner services
- 10.8 Staff discounts
- 10.9 Christmas parties and other inclusive events
- 10.10 Travel passes
- 10.11 Car parking
- 10.12 Work-related supplies
- 10.13 Laptops
- 10.14 Mobile phone provided by employer
- 10.15 Home high-speed internet connection
- 10.16 Computers and other equipment provided in employee’s home
- 10.17 Home telephone provided by an employer
- 10.18 Corporate charge cards
- 10.19 Medical check-ups
- 10.20 Course or exam fees
- 10.21 Professional subscriptions
- 10.22 Provision of newspapers, periodicals etc.
- 10.23 Examination awards
- 10.24 Exceptional performance awards
- 10.25 Staff suggestion schemes
- 10.26 Long service awards
- Chapter 11 Records to be kept – Audit of Records
- 11.1 Records to be kept
- 11.2 Completion of forms P35, P45 and P60
- 11.3 Form P11D
- Appendix 1 Ready Reckoners
- Appendix 2 Leaflet IT 51 – Employees’ Motoring Expenses
- Appendix 3 Leaflet IT 69 – e-Working and Tax
- Appendix 4(i) Removal Expenses – Statement of Practice SP IT/1/91
- Appendix 4(ii) Removal Expenses – Tax Briefing Issue 31
- Appendix 5 Exemption for Monthly/Annual Bus or Train Passes
- Appendix II Code of Practice for Determining Employment or Self-Employment Status of Individuals
- Appendix III Income Tax - Statement of Practice SP – IT/1/07
- PART A
- A.1 General
- A.2 Events giving rise to a charge to tax under unapproved share option schemes
- A.3 Tax consequences of the grant of an unapproved share option
- A.3.1 Tax charging provisions relating to the grant of an unapproved share option
- A.3.2 Gain arising on the grant of an unapproved share option
- A.4 Tax consequences of the exercise, assignment or release of share options under an unapproved share option scheme
- A.4.1 Tax charging provision relating to the exercise, assignment or release of share options under an unapproved share option scheme
- A.4.2 Gain arising on the exercise, assignment or release of share options under an unapproved share option scheme
- A.5 Calculating the gain chargeable to income tax
- A.5.1 General
- A.5.2 Example of the income tax treatment of a ‘short option’.
- A.5.3 Example of the income tax treatment of a ‘long option’.
- A.6 Individuals leaving Ireland -Income Tax
- A.7 Share options acquired prior to the individual becoming Irish resident for tax purposes - position re Section 128 TCA 1997 prior to the date of effect of Section 16 Finance Act 2005
- A.8 Section 16 Finance Act 2000
- A.9 Post commencement of Section 16 Finance Act 2005 - Non-resident individuals none of whose duties of employment are exercised in the State
- A.10 Section 15 Finance Act 2006 and share options acquired before, on or after 1 January 2006
- A.11 Relevant Tax on a Share Option (RTSO)
- PART B
- B.1 Interpretation of relevant provisions of Irish Double Taxation Treaties (DTAs) based on OECD Model Tax Convention
- B.2 DTA character of gains from the exercise, assignment or release of share options
- B.3 Income from Employment Articles of DTAs
- B.3.1 Employment Income
- B.3.2 Period of employment for which share options have been granted
- B.3.3 Share option granted when resident of Ireland and exercised when resident of a DTA country
- B.3.4 Share options granted to an employee while a resident of a DTA country and part of referable employment exercised in Ireland
- B.3.5 Share options granted in respect of an Irish employment but part of the period of employment for which the share option was granted was exercised in a non-DTA country
- B.4 Capitals Gains Tax (CGT) on disposal of shares acquired
- B.5 Directors’ Fees Article
- B.6 Long Option - Credit where charge to income tax imposed the date of grant
- B.7 Maximum Double Taxation Relief
- B.8 Relevant Tax on Share Options (RTSO)
- B.8.1 Interaction of RTSO and double taxation relief
- Appendix
- Revenue eBrief No. 17/11
- Revenue eBrief No. 24/11
- Appendix IV SW14 – Main PRSI Changes from 2 July 2011
- Appendix V Universal Social Charge FAQ’S
- 1. Universal Social Charge (USC) General Provisions
- 1.1 What is the Universal Social Charge?
- 1.2 Who is liable for the Universal Social Charge?
- 1.3 Are there special treatments for older persons?
- 1.3A Are there special treatments for full medical card holders?
- 1.4 What is exempt from the Universal Social Charge?
- 1.5 Will the Universal Social Charge apply to non-domiciles?
- 1.6 I am a non-resident director – will I be liable to pay Universal Social Charge?
- 1.7 What are the rates and thresholds of the Universal Social Charge?
- 1.8 Are the higher rates being charged on all earnings or just on the earnings over the relevant threshold?
- 1.9 How is the Universal Social Charge collected?
- 1.10 What income is liable for the Universal Social Charge?
- 1.11 Will redundancy payments be subject to the charge?
- 1.12 I am separated from my spouse or civil partner, and paying maintenance payments. How are these payments treated for Universal Social Charge purposes?
- 1.13 Are share option gains, chargeable to income tax under section 128 of the Taxes Consolidation Act 1997, liable to the Universal Social Charge?
- 1.14 In the case of “restricted shares” to which section 128D Taxes Consolidation Act 1997 applies, is the Universal Social Charge payable on the gross amount chargeable to income tax or on the abated amount?
- 1.15 Is my employer’s contribution to an approved retirement benefit scheme liable to Universal Social Charge?
- 1.16 I earn interest from a deposit account but have been exempted from DIRT because I am aged 65 years and will have total income from all sources of less than €18,000 for 2011. Do I have to pay USC on my interest income?
- 1.17 I am a public servant who paid Pensions Related Deduction (PRD) in 2010 that will be refunded in 2011. Will this refund be chargeable to USC?
- 1.18 Where can I find the Regulations governing the Universal Social Charge?
- 1.19 Does USC apply to the Public Service Pension Reduction (PSPR)?
- 2.PAYE Taxpayers and the Universal Social Charge
- 2.1 Are the first €10,036 p.a. (€4,004 in 2011) earnings exempt?
- 2.2 I’m over 70 years and my income is €25,000 - is the first €10,036 exempt?
- 2.3 My spouse or civil partner and I are both over 65 and taxed under joint assessment–are we exempt from the Universal Social Charge?
- 2.4 I have a medical card – do I pay Universal Social Charge on my wages?
- 2.5 Given that my employer/pension provider records my Dept of Social Protection Illness Benefit after 6 weeks for tax purposes [Note: this 6 weeks tax exemption is abolished with effect from 1 January 2012], will I now have to pay the Universal Social Charge on this benefit?
- 2.6 I earn €50,000 per annum – what rate of Universal Social Charge will I pay?
- 2.7 I earn €70,000 and my spouse or civil partner earns €120,000 (employment income) - what rate will we pay?
- 2.8 I am 45 years old and paid weekly. If I get a bonus of €6,000 will the Universal Social Charge apply at the 7% rate?
- 2.9 Are Occupational Pensions subject to the Universal Social Charge?
- 2.10 Will the Universal Social Charge affect tax credits?
- 2.11 Am I allowed a deduction for pension contributions?
- 2.12 My medical expenses are greater than my taxable income. Can I set the excess expenses against Universal Social Charge to reduce my liability to it?
- 2.13 Are couples in a marriage or in a civil partnership, who are jointly assessed, allowed double the threshold limits?
- 2.14 Short-term working arrangement Job Seeker’s Benefit is not taxable. Will I now have to pay the Universal Social Charge on it?
- 2.15 Should I pay the Universal Social Charge on travel expenses, etc?
- 2.16 If I change employment during the year and earn €50,000 with my first employer/pension provider and €100,000 with my second employer/pension provider will the higher Universal Social Charge rates automatically kick in?
- 2.17 Is it true that although I am exempt from income tax, I may still have to pay the Universal Social Charge?
- 2.18 I am a single person and will be 70 years old in June 2011. Will I benefit from the maximum 4% rate for all of 2011?
- 2.19 I have just left employment and my employer/pension provider has given me a Universal Social Charge Certificate along with my form P45. What do I do with the Universal Social Charge Certificate?
- 2.20 What if I have overpaid the Universal Social Charge? How can I claim a refund?
- 2.21 My employer makes a contribution on my behalf to my Personal Retirement Savings Account (PRSA). Is the charge payable in respect of this contribution given it qualifies for tax relief as a pension contribution?
- 2.22 I have overpaid the Universal Social Charge in 2011. How can I claim a refund?
- 2.23 I am employed in a bank and receive performance-related payments. Am I affected by the special tax on bank bonuses?
- 2.24 Does the Universal Social Charge have to be paid on pension lump sums?
- 2.25 I have made a gain on the exercise of share options. How do I pay USC on this gain?
- 2.26 I am a participant on a Community Employment Scheme and also earn €9,000 per year in a part-time employment. How will USC apply in my case?
- 2.27 I am a participant on a Community Employment Scheme and also earn €11,000 per year in a part-time employment. How will USC apply in my case?
- 3.Self-Assessed Taxpayers and the Universal Social Charge
- 3.1 How will the Universal Social Charge be collected?
- 3.2 I am self-employed – how do I calculate gross income for the purposes of the Universal Social Charge?
- 3.3 Can expenses be deducted?
- 3.4 Am I allowed to deduct capital allowances or losses?
- 3.5 Are exempt sources of income liable for the Universal Social Charge?
- 3.6 What Universal Social Charge should I include in my preliminary tax for 2011?
- 3.7 I have a medical card. Will this affect my liability for Universal Social Charge?
- 3.8 I am aged 60 and (in 2011) have self-employment income of €120,000 and also PAYE employment income of €60,000. What Universal Social Charge will I pay?
- 3.9 Is foreign employment income on which Transborder Relief is due, liable to the Universal Social Charge?
- 4.Employers/pension providers and the Universal Social Charge
- 4.1 As an employer/pension provider, what are my responsibilities in relation to the collection and remittance of the Universal Social Charge?
- 4.2 Who is responsible for deducting and returning the Universal Social Charge?
- 4.3 I am an employer/pension provider – when do I pay this Universal Social Charge?
- 4.4 If the employer/pension provider is responsible, what will the penalty be if the Universal Social Charge is not correctly administered?
- 4.5 Will there be an interest charge for late payment of the Universal Social Charge?
- 4.6 If all earnings are taken into account, how does an employer/pension provider know what an employee may earn in another employment to determine which Universal Social Charge % should be applied?
- 4.7 Are Dept of Social Protection payments added to income to determine whether the Universal Social Charge will be charged or not?
- 4.8 Is calculation of the USC different from calculation of PAYE and PRSI?
- 4.9 For employer/pension providers using Direct Debit, should their amounts be increased, to take account of the Universal Social Charge?
- 4.10 What records should employer/pension providers keep regarding the USC?
- 4.11 Should pay-slips record the Universal Social Charge details separately?
- 4.12 What revisions to forms have been made to cater for the Universal Social Charge?
- 4.13 What is the weekly/monthly, etc. breakdown of the Universal Social Charge thresholds?
- 4.14 Where a payment is made for a period of less than, or more than, a week/month/etc., have the weekly/monthly/etc. threshold amounts to be adjusted accordingly?
- 4.15 Circumstances in which employers/pension providers should make adjustments to the Universal Social Charge liabilities at the end of 2011
- 4.16 How is the Universal Social Charge applied to holiday pay paid in advance of the usual pay day?
- 4.17 A four-weekly paid employee is receiving holiday pay paid in advance in respect of two weeks holidays. How is the Universal Social Charge applied in this case?
- 4.18 A weekly paid employee is receiving holiday pay paid in advance in respect of 4 weeks holidays. How is the Universal Social Charge applied in this case?
- 4.19 An employee is due to receive back pay in 2011. Even though the back pay relates to an earlier year(s), will the payment be subject to the Universal Social Charge?
- 4.20. Does the USC reduce the gross pay for PAYE/PRSI purposes?
- 4.21 An employee reaches 70 years of age during the year after having paid the higher rate of 7% on some of their earnings. What is the employer to do?
- 4.22 Universal Social Charge Certificate (2011) on cessation of employment
- 4.23 How is the Universal Social Charge applied in cases where an exclusion order has been issued?
- 4.24 Are employees within the Employer PRSI Exemption scheme exempt from the Universal Social Charge?
- 4.25 Is Maternity Benefit subject to the Universal Social Charge?
- 4.26 How are employers to treat payments arising in week 53 for Universal Social Charge purposes – given the particular arrangements set out in the Employment Regulations on how such income is treated for deduction of PAYE purposes?
- 4.27 Where an employee has two sources of income, one or both of which is under the exemption threshold of €10,036 p.a. (€4,004 in 2011), but which when combined will exceed the threshold, can the employee opt to pay the Universal Social Charge at a rate higher than the gross pay would suggest?
- 4.28 How are employee contributions and employer contributions to a Permanent Health Insurance scheme treated for USC purposes?
- 4.29 My employer makes a contribution on my behalf to my Permanent Health Insurance Scheme. Is this contribution subject to the USC?
- 4.30 How is the Universal Social Charge applied in cases where an individual holds a full medical card?
- 4.31 How are arrears of pay due to an employee who has ceased employment treated for USC purposes?
- 4.32 As and from 1 January 2012, the deduction of USC has changed from a week 1 basis (as applied in 2011) to a cumulative basis – similar to the manner in which PAYE is deducted. What are the main changes for employers?
- 4.33 What are employers to do where they have not received 2012 P2Cs in time to run January 2012 payroll(s)?
- 4.34 How will the emergency basis of USC operate?
- 4.35 An employee commences employment in 2012 and hands in a 2011 P45. As there is no USC details shown on pre-2012 P45’s, how is the new employer to calculate USC deductions?
- 4.36 Revenue provides an electronic Tax Deduction Card (eTDC) at www.revenue.ie/en/business/paye/e-tax-deduction-card.html. Has this eTDC been revised to accommodate cumulative USC?
- 4.37 How will the USC information be shown on the paper version of employer 2012 Tax Credit Certificates (P2Cs)?
- 4.38 How will the USC Exemption Marker on 2012 Employer Tax Credit Certificates (P2Cs) work?
- 4.39 On the Employer Tax Credit Certificate (P2C) - What is the difference between the Income Tax (PAYE) Exemption marker and the USC Exemption marker?
- 4.40 – The basis of deduction (cumulative or week 1) is stated on the 2012 P2C – will the same basis of deduction apply to both PAYE and USC?
- 4.41 What changes have been made to the P45
- 4.42 What is the employer to do when a new employee gives them a P45?
- 4.43 Where a P2C indicates the employee is exempt from USC, if the employee has paid USC already in the tax year, should this USC be refunded?
- 4.44 The employer tax credit certificate (P2C) shows employees’ yearly, monthly and weekly USC cut-off points. What cut-off points are used for fortnightly and four-weekly paid employees?
- 4.45 Where Revenue determine that an employee is exempt from paying USC, the P2C issues showing an exemption marker and no USC cut-off points. If this employee subsequently ceases employment how does the employer complete the USC fields on the P45?
- 4.46 Payments such as DSP payments, payments paid under the Community Employment Schemes, Back to Education Allowance, etc. [See Appendix A for further examples] are exempt from USC. How are these payments to be treated in payroll?
- Appendix A List of Social-Welfare-Like Payments
- Appendix B Exempt Income Sources
- Appendix C Capital allowances for buildings
- Appendix D Universal Social Charge (USC) Certificate 2011
- Appendix E 2012 Employer Tax Credit Certificate (paper) - P2C
- Appendix F 2012 Form P45 - Part 1
- Appendix G LoCall phone numbers for PAYE employees
- Appendix VI Revenue eBrief No. 81/11
- Revenue eBrief No. 82/11
- Appendix VII Tax Treatment of Flight Crew Members
- Appendix VIII Recent Statutory Instruments