Universal Social Charge

legend365

The rates of Universal Social Charge are:

• 0% on the first €4,004
• 2% on the next €6,032
• 4% on the next €5,980
• 7% on the balance.

So for example say one week i make 500. This would have me down as making near 2k a month. The next week however i could make only 240. In reality i make near 1200 - 1400 a month.

Per Year Up to €10,036.00
Per Week Up to €193.00
Per Month Up to €837.00
Rate of Universal Social Charge 2%

Y From €10,036.01 to €16,016.00 inclusive
W From €193.01 to €308.00 inclusive
M From €837.01 to €1335.00 inclusive
Rate of Universal Social Charge 4%

Y In excess of €16,016.00
W In excess of €308.00
M In excess of €1335.00
Rate of Universal Social Charge 7%

The way i see it is that i am being taxed at 7% week in week out when my overall income is under or just over the threshold for each month and for the year.

Am i being over taxed?

Legend100

The system works in similar ways to the income levy of the last two years. You will have weekly thresholds and will pay the relative percentages on these weekly amounts.

In week 52, your company's payroll package should refund you any excess of USC charge for the year. If it does not (or you leave the job mid year) you will get a USC certificate which you can use to reclaim overpayment of the USC.

legend365

Legend100 wrote: »

The system works in similar ways to the income levy of the last two years. You will have weekly thresholds and will pay the relative percentages on these weekly amounts.

Then why have monthly or yearly thresholds?

Legend100 wrote: »

If it does not (or you leave the job mid year) you will get a USC certificate which you can use to reclaim overpayment of the USC.

How do you know if you did?

Legend100

The monthly thresholds is for those on a monthly payroll system.

The annual thresholds is how you will be judged on claiming a repayment. When you get your USC certificate around this time next year, if your income is below the annual thresholds and you have paid the USC at a higher rate, you can apply for a refund. (If your company uses a computerised payroll package, you will more than likely get any USC overpaid back in week 52 of 2011)

You asked how will you know - on your USC cert it will say gross income for USC and USC paid. Go to the thresholds figures and multiply them out

• 2% on the first €10,036
• 4% on the next €5,980
• 7% on the balance.

So if you earn more than 16016 in the year, you will pay 7% on any amount over this. (as i mentioned, your company's payroll system should fix it in week 52 if you are still working there)

I know it is a pain that you may be overpaying one week when you get a better wage but it is the sytem we are stuck with!

legend365

I hope it works that way and not based soley on my weekly wage.

I have another query.

I made around 16400 last year.

According to taxCalc that works out at me paying 3280 in income tax. I had 3851 credits for the year.

I paid near 300 in income tax for the year. Am i due it back?

superrdave

legend365 wrote: »

I hope it works that way and not based soley on my weekly wage.

I have another query.

I made around 16400 last year.

According to taxCalc that works out at me paying 3280 in income tax. I had 3851 credits for the year.

I paid near 300 in income tax for the year. Am i due it back?

You should be. You will be liable for the income levy though, 2% on all income, equals around 328 euro. If you haven't paid any of this, you still have to.

legend365

As far as i know, income levy is calculated weekly, just like PRSI for instance.

I've paid the income levy only on wages over €289 per week even though i was over the exemption for the year.

I've paid PRSI on wages over €352 per week even though im under that exemption for the year.

Do i owe income levy even though i've paid it most weeks?

superrdave

legend365 wrote: »

As far as i know, income levy is calculated weekly, just like PRSI for instance.

I've paid the income levy only on wages over €289 per week even though i was over the exemption for the year.

I've paid PRSI on wages over €352 per week even though im under that exemption for the year.

Do i owe income levy even though i've paid it most weeks?

Levy is calculated weekly, but paid on the basis of annual earnings. If you earn of 15028 you pay 2% of everything. As you have said you earned 16,400, you should owe 328 in levy. You should get an Income Levy Certificate with your p60. See how much it says you paid. In any event, your employer should sort this all out in your final pay packet. If you have overpaid or underpaid over the course of the whole year, they should make the relevant adjustments in the last pay packet.