USC Exempt Status v USC Exempt Income
Employers should be wary of the difference between USC exempt status (as per P2C/tax credit certificate) and employees in receipt of USC exempt income.
If an employee expects their income to be less than €10,036 in the tax year they can contact Revenue to make a declaration of same, it is only the employee themselves that can make this declaration. Revenue will update the employees USC status to USC exempt and issue a new P2C/tax credit to the employer. The employer will follow this instruction and USC will not be deducted from the employee accordingly.
If an employee is in receipt of USC exempt income, e.g. Community Employment Participants, Department of Social Protection payments, these employees will not necessarily hold USC exempt status on the P2C/tax credit certificate. The exempt income itself should be flagged as USC exempt within the payroll.
Community Employment Participants are allocated PRSI class A8 or A9. Once A8 or A9 is assigned to the employees record in Revenue Details the user will have the option to indicate the employees income is USC exempt. Simply tick the dedicated field, as shown below.
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Glossary of TermsPayroll Deductions
Universal Social ChargeUniversal Social Charge - CalculationsUSC Exempt Status v USC Exempt IncomePAYEPRSIWeek One or Cumulative BasisEmergency BasisLocal Property Tax (LPT)
Getting startedImporting from previous yearCompanyEmployeesPensionsBenefit in kindProcessing PayrollIllness BenefitMaternity BenefitReverse UpdateHolidaysP45Backup and RestoreReportsCSOP30Year endNotifying ROS of new employeesFeature PayrollLegalLeave EntitlementsSEPA Bank Payment Files
