payback.ie

You may notice that in the 2012 version of Payback employees who are paid less than €10,036 are sometimes liable to USC.

The ceiling for USC exemption has risen from €4,004 to €10,036 for 2012.
However Payback does not automatically apply this exemption. It is not a bug, this is by design.

Revenue have advised us that only the rates as advised on the P2C (Tax credits certificate) should be used. Users should not apply exemptions or reduced rates (Medical card holders etc) without a valid P2C.
The onus is on the employee/pensioner (not the employer), to advise Revenue if their annual earnings will exceed the exemption threshold.

We understand that this will probably cause problems for employers. We have provided the facility for employers to make employees USC exempt.
To make an employee USC exempt.

1. Go to the Employee screen.
2. Select the employee you wish to make USC exempt.
3. Click the PRSI/USC tab
4. If the 'USC Exempt' check box is visible, tick this and click update employee

5. If you can not see a 'USC Exempt' check box:
5a. Click the 'Change' button under the USC rates grid and a new screen will appear.
5b. Click 'Standard Rates' in the new screen. Click 'Yes' when the message 'Clear USC Rates and use standard rates' appears.
5c. The 'USC Exempt' should now be visible. Tick this and click 'Update Employee'.

More information about the USC can be found here:
http://www.revenue.ie/en/tax/usc/univer ... e-faqs.pdf