Taxes Consolidation Act, 1997 (Number 39 of 1997)
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531AO Deduction and payment of universal social charge on relevant emoluments.
(1) An employer shall be liable in the first instance to pay universal social charge due in respect of any payment of relevant emoluments.
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(2) As respects any payment of relevant emoluments made to or on behalf of an employee on or after 1 January 2011, universal social charge shall be deducted from such emoluments by the employer at any or all of the following rates:
(a) zero per cent where the amount of the relevant emoluments does not exceed €77, in the case where the period in respect of which the payment is being made is a week, or a corresponding amount where the period is greater or less than a week;
(b) 2 per cent on the full amount of the relevant emoluments where that amount exceeds €77 but does not exceed €193, in the case where the period in respect of which the payment is being made is a week, or a corresponding amount where the period is greater or less than a week;
(c) 4 per cent on the amount of the excess—
(i) where the amount of the relevant emoluments exceeds €193, but does not exceed €308,
(ii) where, in the case of an employee who is aged 70 years or over at any time during the tax year, the amount of the relevant emoluments exceeds €193, or
(iii) where, in the case of an employee who is aged under 70 years and has full eligibility for services under Part IV of the Health Act 1970, by virtue of sections 45 and 45A of that Act or Council Regulation (EEC) No. 1408/71 of 14 June 19711, the amount of the relevant emoluments exceeds €193,
in the case where the period in respect of which the payment is being made is a week, or a corresponding amount where the period is greater or less than a week;
(d) 7 per cent on the amount of the excess—
(i) where, in the case of an employee who is not aged 70 years or over at any time during the tax year, the amount of the relevant emoluments exceeds €308, or
(ii) where, in the case of an employee who does not have full eligibility for services under Part IV of the Health Act 1970, by virtue of sections 45 and 45A of that Act or Council Regulation (EEC) No. 1408/71 of 14 June 1971, the amount of the relevant emoluments exceeds €308,
in the case where the period in respect of which payment is being made is a week, or a corresponding amount where the period is greater or less than a week,
and notwithstanding that the relevant emoluments are in whole or in part for some tax year other than that during which the payment is made.
(3) The provisions of Part 4 of the PAYE Regulations, with any necessary modifications, shall apply to universal social charge in respect of relevant emoluments and universal social charge payable by an employee shall only be recoverable from him or her by his or her employer by deduction in accordance with those provisions.
(4) Within 14 days of the end of every income tax month the employer shall remit to the Collector-General the total of all amounts of universal social charge that the employer was liable to deduct from relevant emoluments paid by the employer during that income tax month.
(5) The Collector-General may, in writing, and unless the employer objects, authorise the employer to remit to the Collector-General, within 14 days from the end of such longer period (if any) than the period specified in subsection (4) but not exceeding one year, as may be so authorised, the total of all amounts of universal social charge which the employer was liable to deduct from relevant emoluments paid by the employer during that longer period.
(6) Where a remittance referred to in subsection (4) is made by such electronic means (within the meaning of section 917EA) as are approved by the Revenue Commissioners, that subsection shall apply and have effect as if ‘within 23 days of the end of every income tax month’ were substituted for ‘within 14 days of the end of every income tax month’ but, where that remittance is not made within that period of 23 days, subsection (4) shall apply and have effect without regard to the provisions of this subsection.
(7) On payment of universal social charge, the Collector-General may send, make available or cause to be made available to the employer concerned a receipt in respect of the payment which shall consist of whichever of the following the Collector-General considers appropriate, namely—
(a) a separate receipt in respect of each such payment, or
(b) a receipt for all such payments made within the period specified in the receipt.
(8) Within 46 days from the end of a tax year, or from the date the employer ceases permanently to be an employer to whom Regulation 7(1) of the PAYE Regulations applies, whichever is the earlier, the employer shall send to the Collector-General—
(a) a return, in a form provided or approved by the Revenue Commissioners, in respect of each individual to whom payment of relevant emoluments was made during the tax year showing—
(i) the total amount of universal social charge payable as respects the individual in the tax year,
(ii) the dates of commencement and cessation within the tax year of the employment of the individual, where applicable,
(iii) the rate of universal social charge payable as respects the individual, and
(iv) the total relevant emoluments paid to the individual in the tax year,
and
(b) a statement, declaration and certificate in such form as may be provided or approved by the Revenue Commissioners, showing the total amount of universal social charge which the employer was liable to remit in respect of every individual to whom payment of relevant emoluments was made in the tax year.
(9) Where the employer is a body corporate, the declaration and certificate referred to in subsection (8)(b) shall be signed either by the secretary or a director of the body corporate.
(10) (a) Within 46 days from the end of a tax year, the employer shall give to every employee who is in the employer’s employment on the last day of the tax year and from whose relevant emoluments any universal social charge has been deducted during that tax year, a certificate showing—
(i) the total amount of universal social charge deducted from the relevant emoluments of the employee during that tax year,
(ii) the date of commencement within that tax year of the employment of the employee, where applicable,
(iii) the rate of universal social charge payable as respects the employee, and
(iv) the total relevant emoluments paid to the employee in that tax year.
(b) The certificate specified in paragraph (a) shall be in such form as may be provided or approved by the Revenue Commissioners.
(11) (a) An employer shall, in the case of an employee to whom he or she makes a payment of relevant emoluments, give to the employee, on the cessation of the period of employment to which the payment of universal social charge in respect of the employee relates, a certificate showing—
(i) the total universal social charge as respects the employee which the employer was liable to remit for the tax year in which the cessation occurs up to and including the date of cessation,
(ii) the dates of commencement (where applicable) and cessation within that tax year of the employment of the individual,
(iii) the rate of universal social charge payable as respects the employee, and
(iv) the total relevant emoluments paid to the employee in that tax year up to and including the date of cessation.
(b) The certificate specified in paragraph (a) shall be in such form as may be provided or approved by the Revenue Commissioners.
(12) This section shall cease to have effect upon the coming into operation of the regulations made under section 531AAB.
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(1A) Where—
(a) an employer pays relevant emoluments to an employee in the form of shares (including stock), or
(b) an employee realises a gain by the exercise of a right in accordance with the provisions of a scheme approved under Schedule 12A,
and where, by reason of an insufficiency of payments actually made to or on behalf of the employee, the employer is unable to deduct the amount (or full amount) of the universal social charge required to be deducted under this Part and regulations made under this Part in respect of those shares or that gain, as the case may be, that employer shall be entitled to withhold and to realise sufficient shares to meet that universal social charge liability.
(1B) Where subsection (1A) applies—
(a) the employee shall allow such withholding as is referred to in that subsection, and
(b) the employer shall be acquitted and discharged of so much of the universal social charge liability as is represented by the shares withheld as if the value of those shares had been paid to the employee.
(1C) Subsection (1A) shall not apply where the employee has otherwise made good to the employer the amount of the universal social charge required to be deducted under this Part and regulations made under this Part in respect of those shares or that gain, as the case may be, as is referred to in that subsection.
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Footnote
1 OJ No. L149, 5.7.1971, p.2
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Inserted by FA11 s3(1)(a). Applies for the year of assessment 2011 and each subsequent year of assessment.
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Deleted by FA12 s2(4)(a). Deemed to have come into force and takes effect on and from 1 January 2012.
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Inserted by FA12 s2(4)(b). Deemed to have come into force and takes effect on and from 1 January 2012.