Pay USC & PRSI?

who_ru

hi all

i got my December payslip today.

first thing in noticed was that all income above 31,800 is taxable @ 41%!!! for god sake that is ridiculous.

also i paid the new Universal Social Charge,but also paid PRSI. i thought the USC was replacing PRSI - should i really be paying both?

Riskymove

who_ru wrote: »

also i paid the new Universal Social Charge,but also paid PRSI. i thought the USC was replacing PRSI - should i really be paying both?

unfortunately yes you pay USC and PRSI

the USI replaced the income levy and health levy

the health levy may have been paid as part of your prsi previously, so you may see a reduced prsi amount

noodler

Why were you charged on on December payslip for the USC?

Thought the tax bands decrease and USC were no applicable until January first - didn't realise it would be backdated.

markpb

AFAIK your tax is calculated based on the payment date, not the period it applies to. If you're paid now for work done in December, you pay tax at 2011 rates.

who_ru

turns out that the USC works out @ 5.4% of my gross pay - does this sound right?

noodler

who_ru wrote: »

turns out that the USC works out @ 5.4% of my gross pay - does this sound right?

Different rates on the different portions of your salary I believe.

http://www.budget.gov.ie/budgets/2011/Documents/Part%20C%20-%20Annexes%20to%20SBM%20FINAL.pdf

See if that is any help to you.

Aard

If you're paying 5.4% on gross pay, then your annual income should be in the region of 45,000. (Assuming you work the same hours every month.)

Also, the marginal income tax rate is on anything over 32,800 I had thought.