USC cut-offs

[seantheman]

Apologies if this has been covered before, I did a search but the question could have been buried in one of the many USC threads.

"You do not pay the Universal Social Charge if your total income for a year does not exceed €10,036. For example, an individual who is earning €10,030 per year will not pay Universal Social Charge, while an individual who is earning €10,040 per year will pay 2% on that €10,040 or €200.80"

The excerpt above is taken from citizensinformation.ie.
In the example shown, what's to stop the employer from reducing an employees wages by €10p.a, thereby denying the exchequer €200 and
saving the employee €190?

 

[mandelbrot]

Not really much to stop a small employer, but if a larger operation had a rake of part-time staff all within a very close margin of the USC threshold, and where they actually have proper time recording and payroll systems in place, it would be fairly noticeable.

Not really worth the risk for the employer in any case though, as the net cost to them is essentially the same either way (a tenner saving) - why should they risk penalties / prosecution to save an employee a couple of hundred quid.

 

[Mrs Vimes]

I didn't think you could incur penalties / prosecution for cutting an employee's pay? The courts wouldn't be able to cope with the deluge of the last few years!

Surely it would be legal to give everyone in this situation an hour off unpaid before Christmas