What is USC and PAYE charge? [In simple terms]

arleitiss

Hey, just wondering what is USC and PAYE charge on my payslips?


I keep trying to find out about it but it's all usually written in complex terms.

I mean what does USC and PAYE cover? is it your pension or what?

Do you become more eligible for social welfare in case of unemployment?

Geuze

arleitiss wrote: »

Hey, just wondering what is USC and PAYE charge on my payslips?


I keep trying to find out about it but it's all usually written in complex terms.

I mean what does USC and PAYE cover? is it your pension or what?

Do you become more eligible for social welfare in case of unemployment?

Both are income taxes.

Neither covers your entitlement to welfare benefits, that is paid for by PRSI.

PaddyWilliams

USC is charged on your gross income. There are no allowances, credits etc. for it. With PAYE you do get credits, allowances, pension relief etc.

Spocker

Universal Social Charge: http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax/universal_social_charge.html
USC is a levy/deduction from your wages, and it's purpose is to fund social services

Pay As You Earn: http://www.citizensinformation.ie/en/employment/starting_work_and_changing_job/starting_work/tax_and_starting_work.html
This means that taxes are calculated and deducted automatically from your wages, by your employer, rather than you having to deal with Revenue yourself.

Effectively both of these are used to fund services by the state, such as hospitals, old-age pensions, and the like