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Understanding USC on Bonus / Backpay

  • 09-04-2023 12:05am
    #1
    Fake Tales
    Registered Users Posts: 90 ✭✭


    I'm trying to understand my paycheck better and have a spreadsheet to calculate PAYE, and USC. I can usually recreate what is on my pay slip.

    However I get a yearly bonus and also a week with a pay increase backpay. This puts me into the top band of USC (8%) for that 2 week period because the payroll system thinks that is my standard pay. I am normally in the 3rd band (4.5%) of USC.

    Bonus and backpay included I don't make it into the top rate of USC for the year. So how do companies generally address this? Does it get evened out at the end of the year? D I need to claim taxback?

    Right now I would be better off if I had got my pay increase in January as opposed to the difference all together in one payslip.



Comments

  • #2
    Xander10
    Registered Users, Registered Users 2 Posts: 5,110 ✭✭✭Xander10


    It will even out over the year



  • #3
    SureYWouldntYa
    Registered Users, Registered Users 2 Posts: 7,761 ✭✭✭SureYWouldntYa


    It will even out over the next few payroll returns

    For the next payroll return, the system will see you have overpaid USC and there will either be a reduction in the USC you need to pay for the week or there may possible be a refund of USC due depending how much it is



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