Know Your Rights
Question: Has there been any change to the Universal Social Charge in Budget 2012? Answer: The Universal Social Charge (USC) is a tax payable on your gross income. It is also payable on notional income (benefit-in-kind payments) and it is deducted before pension contributions. All Department of Social Protection payments (including State pensions and Child Benefit) and similar payments (for example, CE schemes and Back to Education Allowance) and income on which DIRT has been paid are exempt from the USC. Everyone (including medical card holders) is liable to pay the USC if their gross income is over a certain threshold in a year. For 2012, the income threshold has increased from E4,004 to E10,036. If your income is over E10,036 you pay the USC on all your income. There is no change to the rates of the USC which are: * 2% on the first E10,036 * 4% on the next E5,980 * 7% on the balance People over 70 are not liable for the 7% rate but pay at 2% on income up to E10,036 and at 4% on all their income above E10,036. Where a new employee is paying PAYE on an emergency basis, the emergency basis rate of the USC that applies is 7% and it applies to all of the salary/wage. For 2012 the deduction of the USC has changed to a cumulative basis, similar to the manner in which PAYE is deducted. As with PAYE tax credits and rate bands, the USC rates and thresholds to be applied to employees will be issued to employers by the Revenue Commissioners on Employer Tax Credit Certificates (P2CS). Further information is available from the Citizens Information Centre below. Killarney - 076) 107 7820 Email: killarney@citinfo.ie Tralee - 076) 107 7860 Email: tralee@citinfo.ie e Caherciveen - 076) 107 7780 Email: caherciveen@citinfo.ie Castleisland - 076) 107 7790 Email: castleisland@citinfo.ie Kenmare - 076) 107 7810
Email: kenmare@citinfo.ie Killorglin - 076) 107 7830 Email: killorglin@citinfo.ie Listowel - 076) 107 7840
Email: listowel@citinfo.ie Lo-call No: 1890 777 121 or 076 1074000. Web Site: www.citizensinformation.ie