Guide To Employment Tax Rates 2017

Author:Mr Ronan T. O'Grady
Profession:O'Gradys Solicitors
 
FREE EXCERPT

UNIVERSAL SOCIAL CHARGE

The Universal Social Charge (USC) is a tax payable on gross income, including notional pay, after any relief for applicable capital allowances, but before pension contributions.

Standard Rates of USC applicable to Regular Employees for 2017 are:

Income Rate

Income up to €12,012.00

0.5%

Income from €12,013.01 to €18,772.00

2.5%

Income from €18,773.00 to €70,044.00

5%

Income above €70,044.00

8%

Standard Rates of USC applicable to Self-employed persons for 2017 are:

Income Rate

Income up to €12,012.00

0.5%

Income from €12,013.01 to €18,772.00

2.5%

Income from €18,773.00 to €70,044.00

5%

Income from €70,044.00 to €100,000

8%

Income above €100,000

11%

Reduced Rates and Thresholds of USC are as follows:

2017

Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less.

Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less.

0.5% - Income up to €12,012.00

2.5% - All Income above €12,012.00

Categories exempt from USC:

2017

Where an individual's total income for a year does not exceed €13,000

All Department of Social Protection payments and payments similar in nature to such payments paid by other Government bodies

Income already subjected to DIRT

PAY RELATED SOCIAL INSURANCE

A Pay Related Social Insurance (PRSI) contribution is payable in respect of full-time employees and part-time employees and consists of an employer's and, where due, an employee's share of PRSI. PRSI contributions are paid both by employers and self-employed and are used to pay for Social Welfare benefits and pensions. Self-employed persons are liable in respect of income from a trade, profession or from investment income after deductions of capital allowances. Directors who own or control 50% or more of the shares are deemed to be self-employed and liable to pay PRSI at Class S. PRSI rates payable 2017

Employer

Employee

Class A employees earning:

Less than €376 per week

Greater than €376 per week

8.50%

10.75%

4%

4%

Class S employees, self -employed

N/A

4%

SPECIAL ASSIGNMENT RELIEF PROGRAMME

The Special Assignment Relief Programme (SARP) commenced on the 1st January 2012, and will continue to run up until 2020. The SARP operates as an incentive for individuals coming to work in Ireland for the first time. It is available to individuals who are in employment for a minimum of 12 months if they arrived during 2012-2014, and 6 months if they have arrived...

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