Arithmetic I

Question 1

Net Pay or Net Income

Answer 1

Money received after all deductions have been made.

Question 2

Statutory deductions

Answer 2

Payments that must be made to the government. They are taken from gross pay by the employer.

Question 3

Income tax (PAYE)

Answer 3

Payment of public services, e.g. Gardaí, health care, education, etc.

Question 4

Pay-Related Social Insurance (PRSI)

Answer 4

Old-age pensions, jobseeker’s benefit, jobseeker’s allowance, child benefit, etc

Question 5

Universal Social Charge (USC)

Answer 5

Income for the state

Question 6

Non-statutory deductions

Answer 6

Are Voluntary deductions. They are taken from gross pay by the employer at the request of the employee.

Question 7

Standard rate cut-off point

Answer 7

The amount up to which an employee is taxed at the standard rate.

Question 8

Gross tax

Answer 8

The amount of tax owed to the state before tax credits are deducted.

Question 9

Tax credit

Answer 9

A sum deducted from the total amount (gross tax) a taxpayer owes to the state.

Question 10

Tax payable

Answer 10

Gross tax less the tax credit.

Question 11

Gross Pay or Gross Income

Answer 11

Money earned before deductions are made.