Discover below which income types are exempt from USC calculations.
Cause
Resolution
Income types that are exempt from USC calculations:
If your employee’s yearly gross income is less than €13,000.00
All Department of Social Protection payments. This includes Maternity Benefit, Paternity Benefit, and state pensions
Social welfare payments, including those received from abroad
Payments made as part of Community Employment schemes
The Back to Education Allowance
Student grants and scholarships
Certain salary sacrifice schemes. This includes the TaxSaver Commuter Ticket Scheme and the Cycle to Work scheme
Statutory redundancy payments
NOTE:
If your employee's yearly gross income is less than €13,000 and Revenue hasn’t exempted him, you still need to deduct USC. Revenue will then refund the employee.