What Deductions Are Made From The Gross Pay?
PAYE & USC
- An employer is required to operate PAYE, for each employee on their payroll.
- The employee should register the employment with Revenue using myAccount.
- Revenue will issue tax credits, cut-off points and USC rates (RPN) to the employer which can be downloaded from the Revenue website and imported to a computerised payroll system.
- The Payroll system will calculate the correct tax and USC to deduct. Medical card holder or person aged 70 years or over, whose aggregate annual income does not exceed €60,000 may benefit from reduced rates of USC. > Reduced rates of USC
If a person reaches 70 years at any stage during the year they will benefit from the maximum USC rate of 4% rate for the whole year. If you have not received a Tax Credit Certificate for an Employee you must apply the Emergency USC rate of 8%. The USC charge will not apply to Maternity Benefit.
PRSI
- The PRSI class for privately paid personnel will be the A Class. The computerised Payroll system will calculate the correct PRSI once the correct class is entered for each employee.
- Class A applies to employees under age 66 with reckonable pay of €38 or more per week from all employments.
- Class A also applies to public servants recruited since 6 April 1995 and employees age 66 to 70 (born after 1 January 1958) who are not getting a State Pension (Contributory).
- Class A does not apply to people over 70 years of age and or people in subsidiary employment.
- A small number of employees are insurable at Class J, no matter how much they earn, such as employees aged 70 or over or people in insurable employment.
Taxation of Jobseekers, Illness Benefit and Maternity Benefit
- Illness Benefit, Jobseeker’s Benefit and Maternity Benefit are considered as income for tax purposes and are taxed from the first day of payment, except for payments for qualified child(ren) which are not taxable.
Rates of Pay
- Each employee’s rate of pay is set out in their contract of employment and any changes to this rate of pay must be approved by the Board.
Each individual Board is entitled to make their own arrangements with employees.
If you need any further information please email primary@fssu.ie or phone (01) 9104020.