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Important notes about cumulative USC:

  • Only the rates as advised on the P2C should be used. Users should not apply exemptions or reduced rates (Medical card holders etc) without a valid P2C.
  • Generally, USC should be on the same basis as PAYE. We have included a warning that will alert the user if the basis for USC calculation differs to that of PAYE.
  • The ceiling for USC exemption has risen from €4,004 to €10,036 for 2012. Employees will only be exempt from USC if this is what is in the P2C. Payback does not automatically apply this exemption. The onus is on the employee/pensioner (not the employer), to advise Revenue if their annual earnings will exceed the exemption threshold.

USC rates can be changed in the following ways in Payback:
1. Loading a new P2C file from ROS.
2. When standard USC rate are being used: By ticking 'USC Exempt', 'Medical Card', 'Age over 70' or 'Emergency' in the PRSI/USC tab in the employee screen.
3. When standard USC rates are not being used: by clicking the 'Change' button under the USC rates grid in the PRSI/USC tab in the employee screen. A new screen appears where you can enter your own rate bands, or revert back to Standard Rates.

Click the 'Change' button (under the USC rates grid in the PRSI/USC tab in the employee screen) if you want to either use Standard USC rates, or when you want to manually enter USC rates.

'USC Exempt', 'Medical Card', 'Age over 70' or 'Emergency' can only be used with Standard USC Rates.


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How to make an employee USC exempt
- Go to the Employee Screen and select the employee
- Select the PRSI/USC tab
- Click 'Change' that appears under the USC rates table, a new screen will appear.
- Click the 'Standard Rates' button on this new screen
- Click 'Yes' when the message "Clear USC rates and use standard rates" appears.
- The new screen will disappear
- Tick the 'USC Exempt' tick box on the employee screen.
- Click 'Update Employee'

How to make an employee pay reduced standard rates
- Go to the Employee Screen and select the employee
- Select the PRSI/USC tab
- Click 'Change' that appears under the USC rates table, a new screen will appear.
- Click the 'Standard Rates' button on this new screen
- Click 'Yes' when the message "Clear USC rates and use standard rates" appears.
- The new screen will disappear
- Tick either the 'Medical card' or 'Age over 70' tick box on the employee screen.
- Click 'Update Employee'


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I have an employee that has USC exemption, but they breached the threshold for one or more payments, what should I do?

The onus is now on the employee to inform Revenue whether or not they are USC exempt for the year.

Payback no longer automatically makes people exempt from USC, and this is by design.
This will of course cause problems, but these are the instructions from Revenue.


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Revenue have introduced confusion by their use of terminology.
P2C files and paper certificates use Cut Off Points.
Revenue helpdesk and other internal systems use Bands.

When entering USC rates in Payback, please use Cut Off Points and not Bands.

For Example, these are Cut off Points:
2% €10036
4% €16016
7% Balance.

These are Bands:
2% €10036
4% €5980 (16016-10036)
7% Balance

Always use Cut off points, and not Bands when entering USC rates into Payback.


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Example:
One rate at 2% - the balance not liable to USC


- In the PRSI/USC tab in the employee screen, click the 'Change' button to bring up the USC dialogue.
- Select 2 USC bands
- Enter the figures for the first (2%) band.
- Click save.

In the PRSI/USC tab, the USC rates should look like this:
Code:
%   Weekly   Monthly   Annual
2   193      836.33    10036
0   Balance  Balance   Balance


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PostPosted:  
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Example:
My figures do not match my accountant's figures


Please make sure your rates are entered exactly the same as your accountant's. For example:
You may have entered:
2% = 837
but your accountant is using:
2% = 836.34

If the figures do not match, then the USC will be calculated differently.


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