USC for person first year in Ireland-three questions

[nearlyoldfellow]

1. If a person moves in from another EU Country ( in this case , Spain) to an Irish employment , at the middle of September 2025 , earns €12k in that time are they exempt from USC for that 14 week period.?

2. I presume they pay PRSI at 4.2% on the earnings say €504 or €36 per week ( Employer's PRSI €1350 /€96.43)

3. Their Cut Off Point for 2025 is €44000 , their annual tax credit is €4000. Will there total PAYE be:
€12,000 @20% = €600 less annual tax credit Nil. Total PAYE payable Zero or is the tax calculated on a weekly basis?
The advice I am getting on line is different to what my payroll software calculates

Thanks

 

[ClubMan]

The advice I am getting on line is different to what my payroll software calculates

Which is what?

 

[nearlyoldfellow]

Advice I'm getting online is as outlined below :
PAYE NIL
USC NIL
PRSI : E'EE €504 E'R : €1350 Total €1854

 

[S class]

They would only be liable for prsi.
If they have USC or PAYE tax deductions, they can submit a statement of liability in Myaccount and this will give them a refund of deducted USC and PAYE tax.

 

[jpd]

Annual earnings under € 13,000 are exempt from USC
PRSI is 4.2% so € 12,000 x 4.2% = € 504

 

[Towger]

Annual earnings under € 13,000 are exempt from USC

The have to apply to Revenue for the USC exemption, payroll software will not automatically give it.

 

[nearlyoldfellow]

Brilliant , thanks everyone . That tidies it up and gets it right in my head. I'd hate to have advised the guy incorrectly and Revenue came back afterwards looking for a recalculated liability.
Towger , he has received USC exemption so you're spot on with that advice.
The payroll software was initially looking for payment for this.

 

[Towger]

The USC exemption is only if their earnings are below 13k. 1 cent above and whole lot becomes subject to USC.

 

[Hasbeen]

Very interesting post .

Two takeaways I am seeing:

If someone arrives and is employed in Ireland late in the year , they can earn UP to €13,000 and be totally USC exempt.

If someone arrives in Ireland sometime through the year they can earn UP to the total of their tax annual tax credit on the tax deduction certificate and pay ZERO tax even though they could be earning vastly more than than their prorata weekly/monthly tax credit on their Tax Deduction Certificate . I would always have thought that their PAYE would have been calculated on a Week 1 basis.

Everyday is a school day .

 

[Wheelie Bin]

So , in what situation does the Week 1 PAYE calculations apply ?

 

[ClubMan]

in what situation does the Week 1 PAYE calculations apply ?

When you haven't obtained a cumulative Tax Credits Cert?

Week 1 basis

This page explains why you may receive a Tax Credit Certificate (TCC) on the Week 1 basis

www.revenue.ie

 

[Ciru75]

So , in what situation does the Week 1 PAYE calculations apply ?

Generally if credits applied to an employment have reduced e.g. because of social welfare payments or moving credits around.

For a new employment starting mid-year, you have to ask for a cumulative cert I think.