Universal Social Charge - Calculations

Some important points relating to the calculation of the USC:

The Universal Social Charge is collected in the same manner as PAYE and on the same calculation basis
There is no USC relief on pension contributions

The USC is payable on gross income, including Notional Pay, before employee pension contributions.

Employers are notified of the specific USC deduction method for each individual employee in the same manner as they are notified about an employees PAYE deductions, i.e. on the P2C file on an employee by employee basis.

CESSATION OF EMPLOYMENT

The Form P45 includes a dedicated section for the return of USC information and must be completed by all employers when an employee ceases to be employed by them.

EMPLOYEES COMMENCING EMPLOYMENT

When a new employee commences employment with you, you must capture the USC already paid by the employee as per the P45 issued from his previous employer.

The Employee records Previous Employment input screen facilitates the recording of the additional USC information from the P45.

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. The previous pay, tax, pay for USC and USC deducted will be notified to the employer on the P2C issued by Revenue.

USC EXEMPTION MARKER

Where Revenue determine that the employee/pensioner’s total annual earnings (from all USC-able sources) will not exceed the USC exemption threshold (2016: €13,000), the USC exemption will be stated on the P2C issued by Revenue. This USC exemption marker is an instruction to the employer/pension provider not to deduct USC from payments being made.

Where the employer holds a P2C which does not show exemption and the employee/pensioner advises them that USC exemption applies to them, the employee/pensioner should be instructed to contact their local Revenue office to arrange to have a revised P2C issued. While awaiting a revised P2C the employer should continue to use the P2C currently held.

If an employee is exempt from USC the Tax Credit Certificate will show this:

To indicate that an employee holds USC exemption in BrightPay, this is recorded on the Employees Revenue Details record;

USC Exemption

CALCULATING USC ON WEEK 53

Where a week 53 occurs an additional period of USC threshold is allocated to the employee on a week 1 basis.

Need help? Support is available at 01 8352074 or [email protected].

Installing BrightPay

Installing the software on to your PC Setting Up BrightPay for Multiple Users

2016 Budget - Employer Summary Payroll Calendar Minimum Wage Pension Related Deduction (PRD)Ordering for Next Year

Getting Started

Introduction to BrightPay Setting up an employer and its employees using a Revenue P2C File

Importing from Previous Year

Importing from BrightPay 2015 Importing from Thesaurus Payroll Manager

Switching from Thesaurus Payroll Manager to BrightPay mid year Importing employee data from another payroll package

Employee Data that can be Imported into BrightPay Migrating from SAGE Micropay to BrightPay

Adding a New Company Additional Employer Information Setup Initial Rates of pay Adding/ Amending Hourly Rates Adding/ Amending Daily Rates Adding/ Amending Addition Types Adding/ Amending Deduction Types Adding/ Amending Pension Schemes Adding/ Amending Savings Schemes Adding/ Amending Bank Accounts Adding/ Amending Departments

Exporting a P2C file from ROS Importing a P2C file Personal Employment Payment Revenue Details HR CSO

Payroll Deductions

Universal Social Charge Universal Social Charge - Calculations USC Exempt Status v USC Exempt Income PAYE - Pay As You Earn Cumulative Basis/Week 1 Basis/Temporary Basis Emergency Tax Basis Local Property Tax (LPT)PRSI PRSI - 2016 Tables

Processing Weekly Payroll Processing Fortnightly Payroll Processing Monthly Payroll Processing 4-Weekly Payroll Net to Gross Payments Entering Pension Deductions Allocating An Employee's Pay across Departments Importing Pay Data from a CSV File Finalising Payslips Printing Payslips Emailing Payslips Exporting Payslips Paying Employees

Mid-year Starters

Setting up a new employee mid-year Preparing a P45 Part 3 for ROS Preparing a P46 for ROS Submitting a P46/P45 Part 3 to ROS

Issuing a P45 Printing a P45 Reversing a P45 Submitting a P45 to ROS

Adding/ Amending Pension Schemes Entering Normal Pension Deductions Entering a CWPS Pension Entering a NECI Pension Normal Pensions Report CWPS & NECI Reports

Illness Benefit

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 Making adjustments to previously paid illness benefit

Benefit in Kind

Benefit in Kind - General Information Vehicles Loans Accommodation Medical Insurance - Annual Medical Insurance - One-Off Share Based Remuneration Annual Benefits One-Off Benefits

Parenting Leave

Adoptive Leave & Pay Maternity Leave & Pay Paternity Leave and Pay

Holiday Entitlements - Useful Information Public Holiday Entitlements - Useful Information Processing Holiday Pay

Employee Calendar Making Corrections to Payroll

Re-defining Schedule of Periods Re-opening Payslips

Monthly P30 Return Quarterly P30 Return P30 ROS File

Creating a New Report Favourite Reports Audit Trail Report CWPS & NECI Reports Daily Pay Report DSP Benefits Report Hourly Pay Report Notional Pay Report Payroll Summary Report Pensions Report

Backing Up & Restoring Data Files

Backing Up Your Payroll Data Restoring a Payroll Data File

Preparing a P35 ROS File Submitting a P35 to ROS P60s Week 53 Medical Insurance Eligible for Tax Relief

Glossary of Terms - Foreign Language Help Sheets

Cantonese Czech English Hungarian Latvian Lithuanian Mandarin Polish Portuguese Romanian Russian

EHECS (EARNINGS, HOURS & EMPLOYMENT COSTS SURVEY)