Create or Manage Employee Statutory Deductions Calculation Card

Typically, calculation cards are created automatically as part of the new hire process. However, you can create a calculation for an employee, if required

Before you start

Complete these tasks before you create a statutory deductions card manually.

1. Complete the new hire process for the employee.
2. Ensure that the employee has a payroll relationship and assigned to a payroll.

Fastpath:

My Client Groups->Payroll->Calculation Cards

Here's what to do

1. Search for and select the employee
2. Select the Statutory Deductions calculation card for the employee. If no calculation card, you can create one now.
   The calculation card contains these components and component details:

   1. Social Insurance
   2. Taxes
3. In the Social Insurance component group, these components are automatically created.
   • Pay Related Social Insurance component with the employer reference, component effective start date, and calculation component details:

     Social insurance component group fields

     Pay Related Social Insurance	Description
     RPN Number	A reference number shared with the employer to reference the employee’s RPN information.
     RPN Issue Date	Date when the RPN was issued
     Start Date	First date on which RPN applies
     End Date	Last date of the current tax year (default)
     Information Source	Revenue Payroll Notification
     PRSI Class	A (default contribution class)
     Overridden Subclass	Select a Subclass to override the value identify by the payroll process
     State Pension Contributory	Set this field to Yes if the employee is drawing down their state pension contributory.

   • Universal Social Charge component with the employer reference, component effective start and end dates, and calculation component details:

     USC component group fields

     Universal Social Charge	Description
     RPN Number	A reference number shared with the employer to reference the employee’s RPN information.
     RPN Issue Date	Date when the RPN was issued
     Start Date	First date on which RPN applies
     End Date	Last date of the current tax year (default)
     Information Source	Revenue Payroll Notification
     USC Status	The default value is Ordinary. Select Exempt for an employee with an exemption order.
     USC Pay to Date Previous Employment	Employee’s pay that’s applicable for USC calculation
     USC Deducted to Date Previous Employment	USC paid in previous employment
     USC Rate 1 Percent	First tax rate of USC
     Yearly USC Rate 1 Cutoff	First Income band upper limit
     USC Rate 2 Percent	Second tax rate of USC
     Yearly USC Rate 2 Cutoff	Second income band upper limit
     USC Rate 3 Percent	Third tax rate of USC
     Yearly USC Rate 3 Cutoff	Third income band upper limit
     USC Rate 4 Percent	Fourth tax rate of USC
     Yearly USC Rate 4 Cutoff	Fourth income band upper limit

4. You can create other calculation components for Social Insurance as described below, if required. Select the calculation component and parent component.

   Other calculation components

   Calculation Component	Description
   Extra Employment Details	Specify whether community employment applies to the employee. Or you can specify if the employee is a proprietary or non-proprietary director.
   Insurable Weeks Regular Override	Override the number contributory weeks for a given pay period. You can specify the period using the effective start and end dates. If you've specified the Insurable Weeks formula in the Organization Statutory Deductions card, this overrides that value. To override insurable weeks for only one period, then attach an Override Insurable Weeks non-recurring element to the employee’s record in the relevant pay period and ensure that a value is entered. For positive offset payrolls where the processing occurs outside the pay period being calculated, ensure that the override element is effective in the processing pay period rather than the calculation pay period.
   PRSI Exemption	Indicate an employee’s exemption from paying PRSI and the exemption reason. You can use the effective start and end dates to specify the period.

5. In the Taxes component group, the Pay As You Earn component with effective start date, employer reference, and component details are automatically created.

   Pay as you earn component group fields

   Pay As You Earn	Description
   RPN Number	A reference number shared with the employer to reference the employee’s RPN information.
   RPN Issue Date	Date when the RPN was issued
   Start Date	First date on which RPN applies
   End Date	Last date of the current tax year (default)
   Information Source	Revenue Payroll Notification
   Tax Basis	The default tax basis is Emergency. Cumulative, Emergency, Week1
   PAYE Pay to Date Previous Employment	Employee’s pay that’s applicable for PAYE calculation
   PAYE Tax to Date Previous Employment	Tax paid in previous employment
   Yearly Tax Credit	Tax credit amount for the year
   Tax Rate 1 Percent	Standard rate of tax
   Yearly Rate 1 Cutoff	Standard rate cut off point
   Tax Rate 2 Percent	Higher rate of tax

6. You can create other calculation components for Taxes as described below, if required. Select the calculation component and parent component.

   Other calculation components for taxes

   Calculation Component	Description
   Exclusion Order	Specify that an exclusion order exists for this employee and enter the start and end dates. An RPN won’t be available where there’s a PAYE Exclusion Order for an employee.
   Legacy Information	Specify a legacy employer reference.
   Local Property Tax	Specify the original amount of LPT as received from RPN response with the start and end dates for the deductions. The LPT amount is deducted evenly over the pay periods up to the end of the tax year. The deduction starts from the next pay period.
   PAYE Additional Information	Specify the other emergency tax periods where the employee starts in the Emergency Weeks process. Select Shadow Payroll to indicate and manage tax obligations for an employee working abroad.

7. The Associations component group displays the tax reporting unit to which the automatically created calculation card is attached. If you’re manually creating the calculation card, you need to create the association with the relevant tax reporting unit.
8. The calculation components are associated with the assignments. If the employee has more than one assignment, you can review the Association Details and make updates or corrections.
9. Save and close the record.