How is usc calculated 2017

The Universal Social Charge is tax you pay on gross income, including notional pay notional pay is a non-cash benefit, such as benefit-in-kind , after any relief for certain capital allowances.

The USC is payable on pension contributions. For married couples or civil partners, each spouse or civil partner is treated individually by their employer or pension provider throughout the year. Liability for the USC depends on the date of the payment rather than on when the income was earned. Although you may have not have to pay income tax based on your entitlement to tax credits or by use of losses or capital allowances, you may still have to pay the Universal Social Charge on your income.

Some sources of income are exempt from income tax but are liable to the Universal Social Charge. These include income from:. Similar payments, such as payments made as part of Community Employment schemes or the Back to Education Allowance , are exempt. Social welfare or similar payments made from abroad are exempt.

Student grants and scholarships are also exempt. You can find more information about USC exemptions on revenue. Statutory redundancy payments are exempt from the charge. In addition, redundancy payments above the statutory redundancy amount are exempt from the Universal Social Charge, up to certain limits. How maintenance payments are treated for Universal Social Charge purposes depends on whether they are voluntary payments or legally enforceable payments.

In the case of a legally enforceable maintenance arrangement, where a separated couple has jointly elected to be treated as a married couple for income tax purposes, the spouse making the payments does not receive exemption from the Universal Social Charge on the portion of their income that they pay as maintenance.

The spouse who receives the payments is not subject to the Universal Social Charge on the maintenance payments that they receive. Up to 31 December , these contributions were subject to USC.

Occupational pensions are subject to the Universal Social Charge, but Department of Social Protection pensions or similar pensions from abroad are not.

You must hold a full medical card or a Health Amendment Act Card to qualify for the reduced rate. If you hold Northern Ireland medical card, you are not treated as holding a full medical card and will not qualify for a reduced rate. The Previous Employment utility of the employee record facilitates the recording of the additional USC information from the P This section should only be completed when the P45 is for the current tax year.

Where the Week 1 basis is used, the tax credits and cut off points both tax and USC information on the P45 can be used on a week 1 basis but the previous pay, tax, pay for USC and USC deducted should not be used to operate the cumulative system.

Once a new P2C is used to the employer which indicates that USC exemption is to be operated then any previous USC deducted will be refunded to the employee on the subsequent payslip. Where a week 53 occurs an additional period of USC threshold is allocated to the employee on a week 1 basis.

Please note: if an employee's normal pay day has changed during this tax year or the preceding tax year, the additional USC cut off points do not apply. You will need to instruct the software if the additional USC cut off points are not applicable to an employee.

Illness Benefit - General Employer does not pay employee while out sick Employer pays employee while out sick but employee retains the illness benefit Employer pays employee while out sick and receives the illness benefit. All rights reserved. Which payroll software do you currently use? We welcome your feedback and you can help us to continue to improve our website by turning survey cookies on.

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