Yellow fields must have a value to be able to calculate.  
Payments
€ Value
T
P
U
Total Payments      
Deductions
€ Value
T
P
U
Total Deductions      
Brought Forward
Gross Pay
PAYE Tax Gross
PAYE Tax Paid
Gross PRSI
PRSI ER
PRSI EE
USC Gross
USC Paid

 

Frequency
Tax Year
Period
Basis
Withhold PAYE/USC Refunds
if Pay is Zero?

 
 


PPS No. has been supplied?
 
Marginal Relief?

 
 
Annual USC Cut Off 1
Annual USC Cut Off 2
Annual USC Cut Off 3
Reduced Rate?

PRSI Category
PRSI Class

 
 
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Tax Year
By default shows the current tax year but you can also select previous years when available.

Frequency
Depending on the employees pay frequency, this can be Monthly, Weekly, Fortnightly (2 weekly) or Lunar (4 weekly).

Pay Period
Monthly pay periods range from 1 to 12 with pay period 1 starting on the 1st of Jan and ending on the last day of the month. Weekly pay periods range from 01 to 52 with pay period 1 starting on the 1st of January and ending on the 7th of January. If the first pay period of the year is on a Thursday subsequent weekly pay period will always start on a Thursday and end on a Monday.

Fortnightly pay periods start from 02 to 54 in steps of two. Period 54 is calculated using week 2 basis. Lunar pay periods start from 04 to 56 in steps of four, pay period 56 is calculated using week 4 basis.

Basis
There are three options, ‘cumulative’, ‘week 1/month’ and ‘emergence’; cumulative being the standard basis. You will find the basis to use clearly given on the employee’s tax certificate. You can change the default basis in the options.

Cumulative basis uses figures to date plus this period to calculate PAYE tax and Universal Social Charge (USC), whereas ‘week 1/month 1’ uses only the figures for this period. There are no rebates given when using ‘week 1/month 1’ basis.

Emergency basis uses a set of periodic tax credits and standard rate cut off points for PAYE tax, distributed over a set number of periods. The number of periods should be supplied in the 'Month/Weeks on Emergency basis" text box.

If the employee has not supplied there PPS number, there are no tax credits and all earnings are taxed on the higher rate. You should put a tick in the "PPS No. has been supplied" tick box.

Emergency basis is non-cumulative so no rebates are given. USC is affected by emergency basis, calculated on a no-cumulative higher rate.

If an employee is on temporary basis, then basis should be set to week 1/month 1 and the tax credits and standard rate cut off should be used from the employees P45. A refund should not be made where an employee is operating on a temporary basis.

Withhold PAYE/USC Refunds where Pay Zero
This option will treat any minus values in PAYE tax and USC as zero where the employee’s was not paid in the period, e.g. the employee did not work that period.

Annual Tax Credits
This figure should be entered from the employee’s Tax credit certificate.

Annual Standard Rate Cut Off (SRCO)
This figure should be entered from the employee’s Tax credit certificate.

Marginal Relief
When ticked, PAYE tax at the higher rate is set to the marginal rate instead of the standard higher rate, for example if the standard higher rate was 41% then the marginal rate is 40%.

On the other hand If the employee is entitled to tax exception, the tax’ able(T) tick box should be un-ticked on the payments section of the payslip screen, against all elements in the list.

The decision regarding any individual’s entitlement to exemption and marginal relief is made by Revenue – not by the employer. The employer must operate PAYE in accordance with the tax credit certificate issued.

Annual Universal Social Charge Cut Off (USCCO)
The values in both USCCO1 and USCCO2 are set by the revenue, and should not be altered. The system will select the correct values depending on the basis, frequency and the reduced rate tick box.

Reduced Rate
If you are 70 or over or a medical card holder under 70 and your aggregate income for the year is €60,000 or less you pay a reduced rate of USC.

Income exempt from the USC
You do not pay the Universal Social Charge if your total income for a year is under €10,036.

All Department of Social Protection payments, including Maternity Benefit and State pensions, are exempt from the Universal Social Charge. Similar payments, such as payments made as part of Community Employment schemes or the Back to Education Allowance, are exempt. Social welfare or similar payments made from abroad are exempt. Student grants and scholarships are also exempt.

Income where DIRT (Deposit Interest Retention Tax) has already been paid is exempt from the USC.
There are a number of other exemptions. These include:

  • Certain salary sacrifice schemes, such as the TaxSaver Commuter Ticket Scheme and the Cycle to Work scheme.
  • Statutory redundancy payments.
  • Foster care payments.
  • Child Benefit.
  • Rent a Room Relief.

To select USC Exception for a payment, un-tick the USC’ able tick-box(U) on that payment in the payments list.

PRSI Category.
Here you select the category that the employee falls under; the class will then be displayed in class below.

Selecting Payments
Click on a row in the description column and type a description.

  • If the payment is PAYE tax’ able, put a tick in the PAYE tax’ able tick-box (T).
  • If the payment is PRSI’ able, put a tick in the PRSI’ able tick-box (P).
  • If the payment is USC’ able, put a tick in the USC’ able tick-box (U).

Then enter a value for the payment.

Selecting Deductions
Click on a row in the description column and enter a description.

  • If you want the deduction to be deducted before PAYE tax is deducted, put a tick in the PAYE tax’ able tick-box (T).
  • If you want the deduction to be deducted before PRSI is deducted, put a tick in the PRSI’ able tick-box (P).
  • If you want the deduction to be deducted before USC is deducted, put a tick in the USC’ able tick-box (U).

Then enter a value for the deduction.

Brought Forwards
This is where you can enter your P45 or totals from the previous period if the Employee started after period 01.

 

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