Universal Social Charge (USC)
The 2016 Budget announced a reduction in the USC rates, but how will this impact on your payroll?
Annual income for USC purposes of €13,000 or less will be exempt from USC.
The percentage rates USC are calculated at have been reduced from 1.5% and 3.5% by 0.5% to 1% and 3% respectively. In addition, the 7% rate of USC has been reduced by 1.5% to 5.5%. There has been no change to the 8% rate of USC.
For 2016, USC will apply at the following rates for those earning in excess of €13,000:
|PAYE Income||Non-PAYE Income|
|Up to €12,012||1%||1%|
|Balance (in excess of €100,000)||8%||11%|
Medical card holders and individuals aged 70 years and over whose aggregate income does not exceed €60,000 will pay USC at a maximum rate of 3%.
The rate of 8% USC will continue to apply under the Emergency Basis.
See below the impact of Budget 2016 on a single person earning €25,000 and €45,000.