payback.ie

First, here is an example of how USC is calculated

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

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

These are Bands (DO NOT USE THESE):
2% €10036
4% €5980 (16016-10036)
7% Balance

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

Example 1
An employee has these cut off points set up in Payback


They are Cumulative USC paid monthly. Their USCable Pay per month is €5000
For August:
Cumulate gross pay = €40000 (8 months at €5000/month)

2% cut off point = 8x837 = 6696
4% cut off point = 8x1335 = 10680
7% balance

USC @ 2% = 6696*0.02 = 133.92
USC @ 4% = (10680-6696) * 0.04 = 3984 * 0.04 = 159.36
USC @ 7% = (40000 - 10680) * 0.07 =29320 * 0.07 = 2052.40
Total USC = 133.92 + 159.36 + 2052.40
Total USC = 2345.68

The employee has already paid €2052.47 (for months Jan to Jul)
Total USC for August = 2345.68 - 2052.47 = 293.21

Reasons why your USC may be incorrect.
1. Mixing up Cut off points and bands
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.

2. Rounding cut off points
You may have entered:
2% = 837
instead of using:
2% = 836.34

3. Using an old version of Payback where there was a problem with Monthly paid employees who were on a Month One basis.
Please make sure you are using version 2012.05 or greater. Payback warns the user when there is an update ready. You should update immediately if the warning message appears.