When budgeting my payslip, should I treat ASC as a tax deduction or a pension contribution

P

PoundMan

Registered User
Messages
232
Hi Folks,

I am wondering if ASC should be classed as a pension contribution or a tax deduction as I will a little unclear on it given that it isn't included as part of the AVC pension contribution limits. I just wanted to get some thoughts on it as I am currently working on budgeting my payslip so wanted to calculate my net pay after tax. I consider pension contributions as part of my savings category.
 
Given that PS pension are unfunded, I suppose it is debateable whether superannuation and the ASC are "taxes" or "pension conts".

I wonder how pension conts and ASC are treated in the national accounts? I'm not sure.



I suggest that you treat the normal 6.5% pension conts and the ASC the same.

Are they savings? I'm not sure.

Wouldn't savings accumulate into an asset? Is there an asset after paying the 6.5% and the ASC?
 
Protocol said:
Are they savings? I'm not sure.

Wouldn't savings accumulate into an asset? Is there an asset after paying the 6.5% and the ASC?
Click to expand...
I was kind of taking the approach that my pension contributions are essentially part of a long-term savings. I don't include the pension deductions on my payslip when calculating my net pay. I generally just take my gross pay figure and subtract PAYE, USC & PRSI to calculate my net pay. But I was curious if I should also be subtracting ASC too and therefore take the view that it is a tax deduction more so than a pension contribution.
 
If I was to start contributing to an AVC, does my contribution limit take into account both the 'Pension Contribution' and 'Lump Sum Contribution' figures from my payslips? Or is it the 'Pension Contribution' figures only? I know that ASC is not factored into it at all, which was why I had been leaning towards classifying it as an additional tax.
 
I don't really understand what you're trying to achieve, or why it's anyway relevant to a budgeting exercise... it's a non-discretionary item. If you're intending on using your "pension" category as a basis for calculating something like scope for AVC contributions then it'd be easier if you separate them, but it seems like a semantic thing otherwise...
 
Dr Strangelove said:
Your net pay is what hits your bank account:)

You can calculate your own version but that’s not net pay!
Click to expand...
I understand what you are saying, perhaps net pay is the wrong wording for it. After-tax pay might be a better description. I prefer not to budget based purely on the money that hits my bank account, since my pay slip includes discretionary deductions for things like health insurance, income protection, trade union fees, etc.
 
PoundMan said:
since my pay slip includes discretionary deductions for things like health insurance, income protection, trade union fees, etc.
Click to expand...
Not what you are asking but you might well be better off looking at getting this separately.

But otherwise ASC, USC, mandatory pension deductions and PRSI are just income taxes.
 
Thanks for the advice @Dr Strangelove I had been classifying the mandatory SPSPS pension deductions as long-term retirement savings when budgeting my payslips, so perhaps instead I should be categorizing those as tax along with PAYE, USC, ASC and PRSI like you are suggesting.
 
You must log in or register to reply here.
Back
Top