What % is the new Universal Social C tax?

WilburWild

Just received my first paycheck with the new tax which seems to be 3 times higher the last years income levy. Does anyone know how this is calculated? I can't seem to find out exactly what % of salary this is meant to be.

loobylou

The charge is 2% on your first €10,036, then 4% on income up to €16,016 and 7% on all income thereafter.
However the charge is being aggregated over your weekly/monthly pay, eg if you are paid weekly you will be paying 2% on the first €193, 4% on the next€115 and 7% on the balance.

Gingersnaps

The USC also includes the Health Levy which used to be lumped in with your PRSI. The USC is the Health Levy plus the Income Levy.

loobylou

loobylou wrote: »

The charge is 2% on your first €10,036, then 4% on income up to €16,016 and 7% on all income thereafter.
However the charge is being aggregated over your weekly/monthly pay, eg if you are paid weekly you will be paying 2% on the first €193, 4% on the next€115 and 7% on the balance.

So someone on €400 a week would pay:

2% of 193: €3.86
4% of 308 (193+115): 12.32
7% of 400: 28

So a grand total of 44.18

Is that right? Or is it that it's

2% of 193: 3.86
4% of 115: 4.60
7% of 92: 6.44
Grand total of 14.19

I presume it's the second one, which doesn't sound that bad.

MagicSean

How much extra money is this expected to raise?

digme

k_mac wrote: »

How much extra money is this expected to raise?

get back to work slave :mad:

WilburWild

loobylou wrote: »

The charge is 2% on your first €10,036, then 4% on income up to €16,016 and 7% on all income thereafter.
However the charge is being aggregated over your weekly/monthly pay, eg if you are paid weekly you will be paying 2% on the first €193, 4% on the next€115 and 7% on the balance.

Do you know if this is on your gross or net salary?
I worked it out at gross and it was still below what was taken.
It was mentioned in the thread below that the 2% levy is bundled in so I added it onto my calculations and it got within 20 euro.

That's assuming the 2, 4 & 7% is taken from gross and the 2% levy is taken from net.

Kristopherus

Its on the gross, before even pension or superannuation contributions are deducted. These were allowed in previous years.

loobylou

WilburWild wrote: »

That's assuming the 2, 4 & 7% is taken from gross and the 2% levy is taken from net.

The health and income levies no longer exist, or rather they are now incorporated into the USC.
Your deductions should be PAYE, PRSI and the USC based on the figures above.
Papa Smuts second calculation above is correct.

later12

Papa Smut wrote: »

I presume it's the second one, which doesn't sound that bad.

Yes, it's the second one.

Except it adds up to be €14.90 and not €14.19/ forgive my pedantry.

Noffles

I seem to of payed more than €120 more PAYE this month for some reason, would anyone know why this would be... and that 7% has taken an extra €150 out of my pay!!!!

BOHSBOHS

noffles
there was a 10% reduction in tax credits
the amount at which u begin paying 41% tax was brought down to 32,800
rent credit was reduced to 320
some credits are abolished service charges , union subs etc

which is probably why you are seeing a higher paye amount:eek: