PRSI & New Levy Clarification

ari101

Cant find any consensus on tax calcs so I'm going to do my own but I need a little clarification re: changes to the levies and prsi.

I'm going to make my question specific in Class A.

2010: 2% Inc. Levy and PRSI AL (Nil & 4%)
2011: Is new levy calculated at 7% on all income if income is above 16016 or is it incremental [(4004*0%)+((10036-4004)*2%)+((16016-10036)*4%)+((annual gross-16016)*7%] and is PRSI still at Nil & 4% ?

2010: 2% Inc Levy and PRSI A1 (4%, 8% & 9%)
2011: levy question same as above and will this PRSI class be returned to 2%, 6% & 6.5% as before the introduction of the health levy if the new levy is to incorporate the health levy or will it still be charged at 4%, 8% & 9%?

Thanks a million!

namenotavailablE

Is new levy calculated at 7% on all income if income is above 16016 or is it incrementa?

It is incremental. However, once you earn over €4004 you pay it at 2% up to income of €10036, then 4% on the next 4980 and 7% on the remainder. Your formula is slightly incorrect for the first €4004.

Re your PRSI query, I don't think the % rates have changed.The main change was that the €75036 ceiling has been abolished.

ari101

Thank some random deity for that - I saw people calculating it as 7% on full amount and was very worried.

That just leave my PRSI query - can anyone confirm the rates for AL and A1 for 2011?

Stheno

It's not changed, it's still 4% after the first €127 per week from what I can see, but the ceiling has been abolished.

ari101

Cheers, it's annoying that it's so unclear - it would be extremely unfair on the A1s to make them pay what amounts to 2 health levies hidden in the social charge and the prsi.

joeyla

From the example calculations does look like the €127 has stayed the same.

Slight correction on above comment "4% on the next 4980", should read "4% on the next 5980"

3 Dollar Bill

http://www.welfare.ie/EN/Publications/Advanced2011/Documents/anprsi2011.pdf

Paddyo

Everyone will pay the USC on a week1/month basis- even those under 4004 per year - however it should be rebated for these people at the end of year from the payroll system.

Paddyo

Paddyo

As of yesterday the rules for the 4004 have changed. Ignore my previous post. The exemption will now be based on the week/month etc equivalent of the 4004 and should be processed by the payrol systems each pay period.

I love a decisive department of finance :mad: