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Change to USC admin ( Universal Social Charge )

  • 19-11-2011 3:42pm
    #1
    allthedoyles
    Registered Users, Registered Users 2 Posts: 6,893 ✭✭✭


    From January 2012 , employers will no longer apply standard USC thresholds to employees .
    Instead , the certificate of Tax Credits and Standard Rate Cut-off Point issued annually , will be amended to include your individual USC thresholds .

    The calculation will be cumulative , so there will be no refunds due or amendments taking place at year end like before .

    Less paperwork in Government Offices , but is there any other positives / negatives , especially for employees .

    link :
    http://www.revenue.ie/en/tax/usc/index.html


Comments

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


    I think a big point is that where your circumstances change during the year (e.g. you receive a full medical card) or in circumstances where your pay varies (e.g. due to commissions) then refunds will be processed more rapidly (or you won't get a shock demand after the year in respect of underpaid USC).

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



  • #3
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    allthedoyles wrote: »
    From January 2012 , employers will no longer apply standard USC thresholds to employees .
    Instead , the certificate of Tax Credits and Standard Rate Cut-off Point issued annually , will be amended to include your individual USC thresholds .

    The calculation will be cumulative , so there will be no refunds due or amendments taking place at year end like before .

    Less paperwork in Government Offices , but is there any other positives / negatives , especially for employees .

    link :
    http://www.revenue.ie/en/tax/usc/index.html

    Well if the USC band thresholds are going to be prescribed on the TCC, what happens in the case of multiple employments...

    At present each employer will be giving the employee the full threshold. The FAQ sheets on the Revenue webpage linked doesn't mention multiple employments, but I would suppose if your full USC threshold has been allocated to one employer then a subsequent employer will be told to deduct at 7% on everything, no different than if there isn't enough SRCOP issued to an employment.

    So, while the new system will ensure no-one is underpaying (by having 2 jobs both under the 7% threshold), it could result in overpayment (if all the USC band is allocated to a 1-day a week job, instead of a person's main employment)...


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