News

Universal Social Charge to move to Cumulative Basis for 2012

2011-10-30 19:15 by Genesis

Important Change to Payroll 2012 Calculations

Revenue advises that the basis of deduction for the Universal Social Charge (USC) will change from week-one to a cumulative basis for the tax year 2012. As a consequence, for 2012, employers’ copies of the Tax Credit Certificate (P2C) will display USC thresholds as Cut-off-points, as well as the applicable rates of USC to be charged. In addition, employees’ Tax Credit Certificates will display USC thresholds in a similar manner to how PAYE Cut-off-points are displayed. The P45 Form will also contain data on USC deductions to enable subsequent employers to operate USC on a cumulative basis where there is a change in employment. The move to a cumulative basis will be underpinned by the publication of Regulations on the Operation of Cumulative USC.

Preparations are in train to ensure that all stakeholders are made aware of the consequences of the change and Revenue has recently consulted with payroll practitioners and software developers to ensure that employers have the necessary systems available to operate USC on a cumulative basis from next year. Moreover, Revenue will provide an extensive frequently asked questions (FAQ) document on its website detailing how USC will operate on a cumulative basis. It is also intended to issue a notification to all employers informing them of the change and referring them to the FAQ document for more information.

You can be assured that Sage Quickpay and Micropay Solutions will incorporate this important change.

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