Pay As You Earn (PAYE) is how the majority of employees pay tax.
Pay Related Social Insurance (PRSI) goes to the Social Insurance Fund which helps pay for Social Welfare benefits and pensions.
There are several categories for PRSI but in general an individual would pay 4% on their gross income.
Before 2013, the first €6,604 a year was exempt from PRSI for most tax payers but this was abolished in the 2013 budget.
PRSI is calculated based on gross income plus any benefit in kind.
The Universal Social Charge (USC) was introduced in the 2010 budget to replace the Income Levy and Health Contribution. USC is applied to anyone earning over €13,000 per annum.
The rates are:
- €0 to €12,012 @ 1%
- €12,013 to €18,668 @ 3%
- €18,669 to €70,044 @ 5.5%
- €70,045 to €100,000 @ 8%
- PAYE income in excess of €100,000 @ 8%
- Self-employed income in excess of €100,000 @ 11%
For those with full medical cards or are over 70 and a total income of less than €60,000, the top rate of USC paid is reduced to a maximum of 3%.
The total USC payable is calculated based on gross income, including notional pay, before pension contributions.