Working for Work : Chapter 5 : Income Tax & Social Insurance

Introduction

As a result of the introduction of the Universal Social Charge (USC) in this year's Budget, every person with means in excess of E77 a week now enters the tax net. In addition, the shrinking of tax credits and tax rates and bands will affect the income of those in work and those taking up a job.

The Universal Social Charge (USC), which applied from January 1st, replaces the Health Levy and the Income Levy, both of which have been abolished.

In this chapter we help you calculate:

• How much income tax, social insurance and USC you will pay?
• How much your 'take-home' pay will be after those deductions?

Gross Pay: Salary/wages before any deductions

Net Pay: Salary/wages after deductions (Tax, PRSI, USC, etc.)

This chapter is intended as a guide only, so it is very important that you check with your local tax office to make sure you are claiming all the tax relief/credits that you are entitled to, as you may be able to claim additional allowances or credits depending on your circumstances.

You will find contact details for the Revenue Commissioners in Chapter 7. You can access a comprehensive directory of Revenue Offices on the Revenue website: www.revenue.ie.

Last Updated: 01/09/2011 ^ back to top