Employee pay day - calculating Income Tax and Universal Social Charge (USC)

Overview

Each employee is entitled to tax credits and tax and USC cut-off points depending on personal circumstances. The total amounts are outlined in the employer copy of the Tax Credit Certificate (P2C).

The P2C will also show whether these should be given on a cumulative basis or a week 1 or month 1 basis. If you do not have a P2C for an employee, you must calculate tax on a temporary basis or emergency basis.

Next: Weekly, fortnightly, four-weekly and monthly pay periods