Lower USC Threshold Hasn’t Been Hit, But It’s Still Been Deducted

Questions: USC Threshold Hasn’t Been Hit, But It’s Still Been Deducted

Hi
Query in relation to wages, the system stopping 2% USC despite the fact that the employee earns less than 193 Euro per week and will never hit the yearly threshold.
Answer

Lower USC is charged for everyone, regardless of whether they will hit the Lower USC threshold for the year. The employee claims back the overpayment of USC at the end of the year from Revenue. Only in the case where an application has been made to the revenue commissioners and approved by them is USC not charged to the employee (and the exemption appears in their tax credit certificate/P2C file).

PS. The information relating to this can be found on http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf page 39:

Exemption
Individuals are exempt from paying the Lower USC where their total income does not exceed €10,036. Where Revenue determine that the exemption applies, it will be advised on the P2C. Employers are to operate strictly on the figures advised on the P2C. Where individuals have not been granted USC exemption on the P2C, and have earned less than €10,036 and have paid USC throughout the year, they can apply to Revenue for a refund at the end of the year.