USC thresholds and rates For a detailed breakdown of USC rates and annual earning thresholds, please refer to our USC rates and annual earning thresholds guide. What USC status should I put employee on? Before you begin processing an employee's pay details, you should check their Tax/USC status and USC rates and thresholds are correct within their employee record. In general, this information is imported to each employee record when you retrieve RPNs. This determines how much USC to deduct from employees' pay throughout the year. There are four different Tax/USC statuses - Emergency, Week 1, Normal and Exempt. Manual calculation of Emergency USC Emergency USC is non-cumulative and calculates on a period-by-period basis. This means that all calculations are based purely on payments subject to USC that the employee receives in the current period only. Pay that accumulates from the beginning of the tax year isn't included in the calculation. EXAMPLE: - A weekly-paid employee is receiving a gross wage of €500.00 this pay period.
- This is the second week that you're paying the employee on your payroll.
Based on the rules of emergency USC, the employee must pay USC on all income they receive this pay period at a rate of 8%. 500.00 x 8% = 40.00 Manual calculation of Week 1 USC Week 1 USC is non-cumulative and calculates on a period-by-period basis. This means that all calculations are based purely on payments subject to USC that the employee receives in the current period only. Pay that accumulates from the beginning of the tax year isn't included in the calculation. EXAMPLE: - A monthly-paid employee is receiving a gross wage of €6000.00 this pay period.
- Revenue have advised that following USC thresholds and rates should apply to this employee:
% Rate | Annual Cut-off Point | 0.5% | 12,012.00 | 2% | 20,687.00 | 4.5% | 70,044.00 | 8% | Pay in excess | Before you start calculating Week 1 USC You need to know what the employee's annual threshold values are for the current period. As this pay frequency is monthly, you must divide the annual threshold value by 12. See the table below for more information: | 0.5% | 2% | 4.5% | 8% | Annual threshold | 12012.00 | 20687.00 | 70,044.00 | Any pay over 70,044.01 | Annual threshold divided by 12 = monthly threshold | 1001.00 | 722.92 | 4113.08 | Any pay over 4113.08 | Manual calculation Now that we know how much the employee is earning this period and what USC thresholds and rates apply, we can perform the manual calculation as follows: Gross pay this period: | 6000.00 | | | 0.5% monthly threshold: | 1001.00 | @ 0.5% = | 5.01 | 2% monthly threshold: | 722.92 | @ 2% = | 14.46 | 4.5% monthly threshold: | 4113.08 | @ 4.5% = | 185.09 | 8% monthly threshold: | 163.00 | @ 8% = | 13.04 | Total USC paid this period: | | | 217.60 | Manual calculation of Normal USC Normal USC calculates on a cumulative basis. This means that year to date values are used to calculate USC rather than period values. EXAMPLE: - You're processing your monthly payroll for June - Period 6.
- Including the current period, the employee's cumulative gross pay to date is €40,000.00.
- Up to the current period, the employee has paid €2000.00 in USC this tax year.
- Revenue have advised that following USC thresholds and rates should apply to this employee:
% Rate | Annual Cut-off Point | 0.5% | 12,012.00 | 2% | 20687.00 | 4.5% | 70,044.00 | 8% | Pay in excess | Before you start calculating Normal USC You need to know what the employee's annual threshold values are for the current period. As this pay frequency is monthly, you must divide the annual threshold value by 12. See the table below for more information: | 0.5% | 2% | 4.5% | 8% | Annual threshold | 12012.00 | 20687.00 | 70,044.00 | Any pay over 70,247.01 | Annual threshold divided by 12 = monthly threshold | 1001.00 | 722.92 | 4113.08 | Any pay over 4113.08 | As normal USC status calculates on a cumulative basis, you need to know what the employee's USC threshold values are up to and including the current pay period 6. See the table below for more information about how to do this: | 0.5% | 2% | 4.5% | 8% | Pay period threshold | 1001.00 | 722.92 | 4113.08 | Any pay over 4113.08 | Pay period threshold multiplied by current period | 6006.00 | 4337.52 | 24678.48 | Any pay over 24678.48 | Manual calculation Once you've identified the pay period values to date, the calculations are as follows: Gross pay to date: | 40,000.00 | | | - 0.5% monthly threshold: | 6006.00 | @ 0.5% = | 30.03 | - 2% monthly threshold: | 4337.52 | @ 2% = | 86.75 | - 4.5% monthly threshold: | 24678.48 | @ 4.5% = | 1110.53 | 8% monthly threshold: | 4978.00 | @ 8% = | 398.24 | Total USC due to date: | | | 1625.55 | - Total USC paid in previous periods | | | 2000.00 | USC refunded this period: | | | - 374.45 | |