USC question.

Scorchio MK7

Hey guys,

Quick question that I hope you can help me with. Sorry if this sort of thing has been answered elsewhere.

I started a new job back at the end March, and for the first 2 months I was charged a seemingly standard rate of USC but this month it has risen greatly. I only got my tax sorted about a week ago but I don't see how that would effect this.

USC charges from April to June.
First month it was 90.26
Second month it was 79.22
This month it is 207.50

My standard yearly wage is 22,000 (Not including commisions) This is the first month ive earned commision as well but it was only around 170 euro.

I don't see any reason from checking through information and tax calculators why it should be this high. I'm just wondering if anybody would know the reason for this or is this actually an error. I'll most likely get in contact with them either way but just to have some sort of information before hand is possible would be handy...

Thanks guys.

ibarelycare

That doesn't sound right. Do you have a copy of your tax credit certificate? It should say what your USC rates are on there. Have a look at this month's payslip and compare it to the rates on your cert.

Scorchio MK7

Will do, thanks for the reply.

I think it would be probly best to give em a call just to get it clarified.

ibarelycare

Yeah I'd speak to whoever looks after your payroll first, they'll be able to tell you exactly where those figures are coming from.

Mongarra

It is difficult to say what the correct deduction is without actual income figures. As previous poster says check your Tax Credit certificate. Just to let you know the first €10,036 of income is charged at 2%, the next €5,980 at 4% and above that (up to €100,000) at 7%.

Obviously with commission there will not be a fixed amount liable each week but the way it would normally be calculated is by taking the annual limits above and dividing them by 52 giving each week: the first €193 at 2%, the next €115 at 4% and the rest at 7%.

Scorchio MK7

I'll fire them off an email too. Cheers!

witchgirl26

I'd check this out with your payroll department first before going to revenue. Were you in a previous job before this & got a P45? Would be worth checking that all is correct on that too. I had terrible trouble last year when my USC was put incorrectly on my P45 which resulted in much hassle for myself, my new company's payroll & revenue to get sorted.

Scorchio MK7

I was actually, went directly from my previous job into this new one. I have handed in my P45 but if that is the case then that might have something to do with it...

Ive emailed my Payroll department either way and await their reply. Once I get in touch with them I will give the Revenue office a call.

Thanks you all for your help and advice.

Pawwed Rig

Is it possible you are on emergency tax?

Your payroll should be able to answer your query. It is most likely some document was not submitted. Either way in the event of overpaying Revenue are pretty good about issuing refunds.

Scorchio MK7

Still waiting for Payroll to get back to me but it seems part of the issue has to do with my previous employer charging my tax incorrectly. Which is causing some of it to be backdated to me now. Although the girl at the revenue did say it is way higher then what it should be either way.

Just gotta wait and see!

witchgirl26

Yeah things like that can take time. My issue was my tax being put the same as my USC on my P45 so I got a massive refund that wasn't actually mine. Took 4 months to sort out a way to pay it back to revenue so that all concerned happy. To be fair to them, they were lovely about it all.
If I was you, I'd ring payroll or walk over to them to talk about it if you don't hear anything back today. It sometimes helps that they see or talk to a real person who's confused as opposed to words on a screen in an email.

Scorchio MK7

The person I talked to on the Revenue side of things was lovely as well. So can't fault em there! I'll pop over to them on my next break and see if there anybody willing to look into it for me

Thanks again

allthedoyles

Or it could be like this :
Lets say you were in a job for first 5 months this year and earned around 8,000e , you may not have paid USC , as first 10,036 is exempt .

So you leave job and start new job , receive P45 , and hand it to your new employer .

Your now find that your earnings are over the 10,000 , and are now liable for USC .

As your employer copied the figures from your P45 to their payroll , and you probably have now received a cumulative tax credit cert from tax office .

Therefore the overall figures are going to come together , and payroll will deduct the correct amount of tax and USC .

Not saying this is your situation , but who knows , it could be you .

Pawwed Rig

allthedoyles wrote: »

Or it could be like this :
Lets say you were in a job for first 5 months this year and earned around 8,000e , you may not have paid USC , as first 10,036 is exempt .

No it isn't
The standard rates of Universal Social Charge are:

2% on the first €10,036

4% on the next €5,980

7% on the balance.

edit - Sorry, I misread. I see what you mean now.
I would assume that payroll gross up your wages for a 52 week period and apply USC based on that rather than waiting on you to break thresholds

allthedoyles

Pawwed Rig wrote: »

No it isn't
The standard rates of Universal Social Charge are:

2% on the first €10,036

4% on the next €5,980

7% on the balance.

edit - Sorry, I misread. I see what you mean now.
I would assume that payroll gross up your wages for a 52 week period and apply USC based on that rather than waiting on you to break thresholds

Payroll should gross up your wages , and do gross up your wages .

However , where an employee has more than one employment in same year , and he fails to reach the thresholds in one of these employments , then when both earnings amounts are added together , he becomes liable for extra USC .

Example :
Job 1 - yearly earnings = 9500 euros
Job 2 - yearly earnings = 24000 euro

This employee would have paid no USC on Job No. 1 , but when he receives a balancing statement , he will be liable for USC on total earnings of 33,500 euro