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PAYE silly question

  • 06-05-2011 2:44pm
    #1
    sammalone
    Registered Users, Registered Users 2 Posts: 110 ✭✭


    Hello all,

    I'm just trying to figure out the changes in paye deductions in this year's wages compared to last year. Am I correct in saying someone paying class A1 prsi ends up paying less prsi because they now pay usc?
    Are the cut off points kept at th esame rates?
    Is the income levy still the same or is it incorporated into the usc too?
    Sorry but I'm totally clueless and just trying to make sense of it all


Comments

  • #2
    namenotavailablE
    Registered Users, Registered Users 2 Posts: 59,703 ✭✭✭✭namenotavailablE


    The deductions from your pay for the USC (which replaces the Income Levy and the Health Levy) depend on your gross pay. The thresholds (using annual pay values) are as follows for employees:

    From €0 to €10036 ===== 2%
    From €10037 to €16016 = 4%
    Thereafter =========== 7%

    Notes: The rates vary if you have a medical card or are aged over 70 (you pay 4% instead of 7%). Additionally, if you are self-employed, you pay 3% extra on everything over €100000 (irrespective of whether you have a medical card/ are over 70).

    Compared to 2010, if your 2011 gross earnings are between approx €26000 and €32000 the USC actually is lower than the old PRSI/ Health Levy/ Income Levy so you'd be coming out ahead of 2010. Basically, the 'old way' was extremely harsh on anyone who earned over €26000 pa- they were charged the Health Levy on the full annual pay, whereas if they earned €25999 they didn't pay ANY health levy. It meant that a payrise could actually result in a decline in net income!

    Source: My PAYE calculator at http://taxcalc.eu/monthlyss

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



  • #3
    Alan_K
    Registered Users, Registered Users 2 Posts: 7 ✭Alan_K


    with regards PAYE, it is calculated in the same way as last year, (20% & 41%)
    but everyones tax credits have gone down by 10% since last year.

    so you will prob see higher paye this year than last, but as the previous post said if you earn between 26- 32k per year, you will see an slight increase in your salary, (unless you have a pension)


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