Pensions, PAYE PRSI and USC Flashcards
what number is tax relief of pension contributions set against
net relevant earnings
what are net relevant earnings
case I / II income less
- trading loss
- capital allowances
- charges
renumeration from non pensionable employment
how is relief for contribution to pensions determined
age and net relevant earnings
how is pension contribution cummulative
if amount paid is greater than the limit calculated then carry forward the balance
steps to calc relief on pension contribution
- calculate net relevant earnings
- if exceeds 115k, use 115k
- find percentage for the persons age
- calculate % * NRE
- use this fig to reduce pension contribution
- carry balance forward to next year
three basis for operation of PAYE
cumulative basis (normal)
week one (or month one) basis
emergency basis
who calculates your PAYE for you
employer
how does cumulative basis for PAYE work
Everything divided into 12
Standard rate cut off point divided into 12
Income one month could be below the SRCOP, the excess is carried forward to add to the SRCOP for the following month
Unused tax credits also accumulate in the same way
how does the week one basis work for PAYE
if you don’t use tax credits or some of SRCOP, you lose it
it doesn’t get carried forward or accumulate
when is someone assessed at an emergency basis
employer doesn’t have PPSN so cannot contact revenue for you
at what rate is all income taxed for emergency tax
marginal rate 40%
why is emergency tax so harsh
to encourage people to get their tax sorted
refunded once sorted
what does USC stand for
universal social charge
on what income is USC charged
gross income
what income is USC excempt
DIRT
social welfare payments
tax exempt termination payments
income that does not exceed 13000
are maintenance payments made deducted before or after USC
before
when is USC calculated for trading income
after capital allowances and trading losses
before pension relief
what do rates for USC depend on
age
income
if you have a medical card or not
what is PRSI calculated on
how much you earn per week or month
what class is used for PRSI for self employed people
class s
under what income ( for self employed ) do not have to pay PRSI
5000 per year
on what income is PRSI calculated on
gross income
less capital allowances
before pension contributions
what does PRSI payments go towards
state pensions, social welfare payments etc
how to tell in exam if PRSI and USC should be calculated
she’ll be clear about it
under what weekly income does not have to pay PRSI
352
what can weekly PRSI contributions be reducted by
€12 max
how to calculate PRSI reduction
- difference between weekly earnings and €352.01
- that/6
- 12 - that
