UNIVERSAL SOCIAL CHARGE (USC)

Kotek Besar · 07-12-2010 5:46pm #1

So the USC replaces the Health Levy and Income Levy (which medical card holders were exempt from)..

Will medical card holders be exempt from having to pay the USC?

Leiva · 07-12-2010 5:57pm

Kotek Besar wrote: »

So the USC replaces the Health Levy and Income Levy (which medical card holders were exempt from)..

Will medical card holders be exempt from having to pay the USC?

Here are Rates ...

0% < €4,004
2% €0 to €10,036
4% €10,037 to €16,016
7% > €16,016

Can anyone please do a comparison to what we are paying today ?

BoB_BoT · 07-12-2010 5:57pm

just to keep it neat, on B6 of the summary document, am I to take those numbers as, if I earn more than €16016, I pay 7% on that in the USC tax?

Kotek Besar · 07-12-2010 6:00pm

mixednuts wrote: »

Here are Rates ...

0% < €4,004
2% €0 to €10,036
4% €10,037 to €16,016
7% > €16,016

I see the rates. My question is, are medical card holders subject to USC, being that they were exempt from the income levy?

Leiva · 07-12-2010 6:01pm

BoB_BoT wrote: »

just to keep it neat, on B6 of the summary document, am I to take those numbers as, if I earn more than €16016, I pay 7% on that in the USC tax?

Yep .

But what i would like is is a comparison on what i am paying today .

(eg)
PRSI + INCOME LEVY = 5% TODAY

USC = 7%

_______________________________
= Im down another 2 %

Fishyfreak · 07-12-2010 6:02pm

My last pay slip i paid 8.16% on Income Levy & PRSI.

BoB_BoT · 07-12-2010 6:02pm

no idea, in fact, those numbers don't make sense.
2% €0 to €10,036
yet
0% < €4,004

Leiva · 07-12-2010 6:02pm

Kotek Besar wrote: »

I see the rates. My question is, are medical card holders subject to USC, being that they were exempt from the income levy?

Are Medical card holders exempt from PRSI & Income levy ?:

If not then No .

johnnyskeleton · 07-12-2010 6:03pm

Kotek Besar wrote: »

So the USC replaces the Health Levy and Income Levy (which medical card holders were exempt from)..

Will medical card holders be exempt from having to pay the USC?

Self employed now pay the same rate as the employed, but unlike the employed they get nothing in return (ok, maybe a state pension but most will die of overwork and starvation related disease before then).

dvpower · 07-12-2010 6:04pm

Fishyfreak wrote: »

My last pay slip i paid 8.16% on Income Levy & PRSI.

The new charge is in addition to PRSI
It replaces the levies only

_michelle_ · 07-12-2010 6:05pm

Kotek Besar wrote: »

So the USC replaces the Health Levy and Income Levy (which medical card holders were exempt from)..

Will medical card holders be exempt from having to pay the USC?

If it is brought in that medical card holders are liable for it I think it is appaling! Why as per usual are low income earners being targeted?? :mad:

BoB_BoT · 07-12-2010 6:06pm

johnnyskeleton wrote: »

Self employed now pay the same rate as the employed, but unlike the employed they get nothing in return (ok, maybe a state pension but most will die of overwork and starvation related disease before then).

exactly, they want us to pay the same and get nothing in return in times of hardship, a farce as usual.

Kotek Besar · 07-12-2010 6:08pm

mixednuts wrote: »

Are Medical card holders exempt from PRSI & Income levy ?:

If not then No .

Medical Card holders are exempt from the Income Levy but pay PRSI.

So, are medical card holders subject to USC or will they be exempt, being that they were exempt from the income levy?

loyatemu · 07-12-2010 6:08pm

current charge is 4% Health levy (5% over 100K) and 2% income levy (4% over 100K)

so if you earn under 100K you'll be paying slightly more (allowing for the banding effect) and if you earn over 100K you'll be paying slightly less than the old levies but this'll be offset by the removal of the PRSI cap.

Leiva · 07-12-2010 6:10pm

dvpower wrote: »

The new charge is in addition to PRSI
It replaces the levies only

Holy **** ..

That means :

existing rates:
PRSI = 8% average
OLD LEVYS = 2%
________________________
10 %

new rates:
PRSI = 8% average
USC = 7%
________________________
15%

+5% :mad:

Am i missing something ?

wicorthered · 07-12-2010 6:12pm

mixednuts wrote: »

Holy **** ..

That means :

existing rates:
PRSI = 8% average
OLD LEVYS = 2%
________________________
10 %

new rates:
PRSI = 8% average
USC = 7%
________________________
15%

+5% :mad:

Am i missing something ?

Helath levy is part of PRSI, so this should reduce I think

Fishyfreak · 07-12-2010 6:13pm

dvpower wrote: »

The new charge is in addition to PRSI
It replaces the levies only

Cheers for that

Ok I paid 6.24% so

TouchingVirus · 07-12-2010 6:14pm

Not quite loyatemu - the annexes to the summary of measures lists the following example which would be close to many people I know:

Single, no children, unmarried earning €25k with a pension contribution of €1500

Old System: Health Levy = €0, Income Levy = €500
New System (USC): €1069

And the tax is increased from €1040 to €1400 to boot.

That's a net decrease of -4.7%, the highest of all categories examined. Even the people on 100k a year are only facing a net deduction of -3.4%

loyatemu · 07-12-2010 6:15pm

old (assuming your on less than 100K)

4% - PRSI
4% - Health
2% - Income
10%

New

4% - PRSI
7% - USC
11%

TouchingVirus · 07-12-2010 6:17pm

I don't pay any PRSI contributions, I also don't pay Health. I'm just under the exemption limit for those.

But now I'm going to be creased with the USC

dvpower · 07-12-2010 6:19pm

wicorthered wrote: »

Helath levy is part of PRSI, so this should reduce I think

PRSI is 4% I think.

So instead of paying PRSI(4%) + Income Levy (2%) + Health Levy (1%), you will pay USC (7%) + PRSI (4%).

That's my reading; I might be mistaken.

Edit: TouchingVirus is closer to the mark

loyatemu · 07-12-2010 6:19pm

TouchingVirus wrote: »

Not quite loyatemu - the annexes to the summary of measures lists the following example which would be close to many people I know:

Single, no children, unmarried earning €25k with a pension contribution of €1500

not disputing this, but why wouldn't a single person on 25K have to pay the health levy - I though it was universal?

[EDIT] - OK its not universal, it only applies above (slightly under) 25K.

youcancallmeal · 07-12-2010 6:33pm

I'm very confused with this. From looking at my payslip it looks like I'm paying 6.94% PRSI, 2.05% income levy and no health leavy. So does that mean I will have to an extra 5% tax not including changes to the tax credits!?

dvpower · 07-12-2010 6:38pm

youcancallme>al wrote: »

I'm very confused with this. From looking at my payslip it looks like I'm paying 6.94% PRSI, 2.05% income levy and no health leavy. So does that mean I will have to an extra 5% tax not including changes to the tax credits!?

My payslip has my health levy included in the PRSI deduction. There is an excemption on part of your earnings.
This explains why it isn't exactly 8% (but also allows everyone here work out how much you get paid):)

Laminations · 07-12-2010 6:43pm

How is this 7% USC progressive when you pay 7% regardless of whether you are on €20,000 or €200,000. It doesn't increase incrementally like the levies did and it cushions the blow for the very well paid.

Look at http://taxcalc.ie/calculator/ and mess around with some figures. The lower paid are bearing the brunt

JamesBond2010 · 07-12-2010 7:03pm

mixednuts wrote: »

Holy **** ..

That means :

existing rates:
PRSI = 8% average
OLD LEVYS = 2%
________________________
10 %

new rates:
PRSI = 8% average
USC = 7%
________________________
15%

+5% :mad:

Am i missing something ?

Laminations wrote: »

How is this 7% USC progressive when you pay 7% regardless of whether you are on €20,000 or €200,000. It doesn't increase incrementally like the levies did and it cushions the blow for the very well paid.

Look at http://taxcalc.ie/calculator/ and mess around with some figures. The lower paid are bearing the brunt

yes you are right. the rich are getting away with murder again

people on the lower end are losing nearly as much as the high end

JamesBond2010 · 07-12-2010 7:09pm

2010 2011 difference

Net 110,317.40 106,452.16 -3,865.24a person on 200,000

Net 18,724.16 17,364.16 -1,360.00a person on 20,000

Padkir · 07-12-2010 7:10pm

JamesBond2010 wrote: »

2010 2011 difference

Net 110,317.40 106,452.16 -3,865.24a person on 200,000

Net 18,724.16 17,364.16 -1,360.00a person on 20,000

They're paying 3 times more tax on your example...?? What more do you want????

JamesBond2010 · 07-12-2010 7:14pm

there is a big difference between 200,000 and 20,000. i just was just showing this example

ParkRunner · 07-12-2010 7:22pm

I'm pretty sure it's 1% up from income levy + health levy = 6% to 7% universal charge

JamesBond2010 · 07-12-2010 7:25pm

susie05 wrote: »

S0 can anyone answer this for definate yet..will med card holders have to pay the usc?

the Ans is no , No one can give a def ans

UNIVERSAL SOCIAL CHARGE (USC)

Comments