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Notional Pay and USC

  • 15-02-2014 11:03am
    #1
    Decorus
    Registered Users, Registered Users 2 Posts: 127 ✭✭


    Hi All,

    I work part-time and might not exceed gross income of €10,036 per year, however I am paying USC every week, is that the way it suppose to be?

    And the second thing I am not sure what "Notional Pay" is (tried to search but still not clear)? I just realised yesterday that I paid certain amount of it first time ever and not sure why.

    Thank you!


Comments

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


    Decorus wrote: »
    Hi All,

    I work part-time and might not exceed gross income of €10,036 per year, however I am paying USC every week, is that the way it suppose to be?

    And the second thing I am not sure what "Notional Pay" is (tried to search but still not clear)? I just realised yesterday that I paid certain amount of it first time ever and not sure why.

    Thank you!

    Does your employer provide you with any perks or benefits - VHI or a company car being the most common ones...?


  • #3
    Decorus
    Registered Users, Registered Users 2 Posts: 127 ✭✭Decorus


    barneystinson wrote: »
    Does your employer provide you with any perks or benefits - VHI or a company car being the most common ones...?

    No, nothing like this at all.


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


    Decorus wrote: »
    No, nothing like this at all.

    Then are you sure you're reading the payslip correctly? If its a printed copy sometimes the lines are off...


  • #5
    Decorus
    Registered Users, Registered Users 2 Posts: 127 ✭✭Decorus


    barneystinson wrote: »
    Then are you sure you're reading the payslip correctly? If its a printed copy sometimes the lines are off...

    You are right, thank you! Looks like by mistake PAYE was printed in the line of notional pay.


  • #6
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Decorus wrote: »
    Hi All,

    I work part-time and might not exceed gross income of €10,036 per year, however I am paying USC every week, is that the way it suppose to be?

    And the second thing I am not sure what "Notional Pay" is (tried to search but still not clear)? I just realised yesterday that I paid certain amount of it first time ever and not sure why.

    Thank you!

    If you ring revenue to tell them that you won't earn 10036 they can mark you as usc exempt otherwise you can claim it back at the end of the year.


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  • #7
    Decorus
    Registered Users, Registered Users 2 Posts: 127 ✭✭Decorus


    I will do! Thank you!


  • #8
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    CIARAN_BOYLE wrote: »
    If you ring revenue to tell them that you won't earn 10036 they can mark you as usc exempt otherwise you can claim it back at the end of the year.

    USC is (supposed to be) calculated cumulatively, so I don't see why / how Revenue would be going to mark someone exempt - it's up to the employer to reimburse through payroll as necessary...


  • #9
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    barneystinson wrote: »
    USC is (supposed to be) calculated cumulatively, so I don't see why / how Revenue would be going to mark someone exempt - it's up to the employer to reimburse through payroll as necessary...

    If you are not going to earn 10036 in a year you are exempt from USC. Revenue will change the P2C to reflect this. I started in a new job in September (my first btw) as a trainee accountant wasn't going to earn 10036 during the rest of the year, I explained that to revenue and when they allocated my tax credits they marked me as exempt.

    Your employer doesn't know what other sources of income you have so won't reimburse you if you earn less than 10036 during the year.


  • #10
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    CIARAN_BOYLE wrote: »
    If you are not going to earn 10036 in a year you are exempt from USC. Revenue will change the P2C to reflect this. I started in a new job in September (my first btw) as a trainee accountant wasn't going to earn 10036 during the rest of the year, I explained that to revenue and when they allocated my tax credits they marked me as exempt.

    Your employer doesn't know what other sources of income you have so won't reimburse you if you earn less than 10036 during the year.

    But your employer doesn't need to know what other earnings you have - your P2C gives cumulative USC bands on it and that is what they are to operate payroll based on. I.e. if in Week 1 you earn 500 then they deduct, and then if you only earn 50 p.w. from then on they'll be repaying, based on the cumulative calculation. No different than would be also happening with the tax deducted in that first week...

    A person would want to pretty certain about their likely earnings for the year before asking Revenue to mark them exempt, as it could get pretty messy if tey do go over the 10k, and particularly if the exempt marker stays on for a couple of years in error and income goes up...

    Hence I said it'd be safer to simply make sure the employer is on the ball with operating the cumulative USC correctly.


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