Create or Manage Employee Statutory Deductions Calculation Card

Use the Statutory Deductions calculation card to review, create, and update employee PAYE, PRSI, USC, and related statutory-deduction information. Each section identifies the calculation-card component, the fields to review or update, and the values to enter or select. The procedure includes Periodic Foreign Tax Credit.

Before you start

Calculation cards are typically created automatically during the new hire process. Create a card manually only when required.

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

Navigation:

My Client Groups->Payroll->Calculation Cards

Here's what to do

Search for and select the employee.
Select the Statutory Deductions calculation card. If no calculation card exists, select Add, choose Statutory Deductions, and continue.
The calculation card contains the following component groups:
1. Social Insurance
2. Taxes

In the Social Insurance component group, select Pay Related Social Insurance.

The component and its details are created automatically. In the calculation component details, review or update the following fields as required:

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 the RPN applies
End Date	Last date of the current tax year. This value is supplied by default.
Information Source	Revenue Payroll Notification
PRSI Class	A is the default contribution class.
Overridden Subclass	Select a subclass to override the value identified by the payroll process.
State Pension Contributory	Set this field to Yes if the employee is drawing down their state pension contributory.

In the Social Insurance component group, select Universal Social Charge. In the calculation component details, review or update the following fields as required:

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 the RPN applies
End Date	Last date of the current tax year. This value is supplied by 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 pay that applies to USC calculation.
USC Deducted to Date Previous Employment	USC paid in previous employment
USC Rate 1 Percent	First USC tax rate.
Yearly USC Rate 1 Cutoff	First income-band upper limit.
USC Rate 2 Percent	Second USC tax rate.
Yearly USC Rate 2 Cutoff	Second income-band upper limit.
USC Rate 3 Percent	Third USC tax rate.
Yearly USC Rate 3 Cutoff	Third income-band upper limit.
USC Rate 4 Percent	Fourth USC tax rate.
Yearly USC Rate 4 Cutoff	Fourth income-band upper limit.

In the Social Insurance component group, select Create in Calculation Components. Select the calculation component and its parent component, then enter the applicable information.

Other calculation components

Calculation Component	Description
Extra Employment Details	Specify whether community employment applies to the employee. You can also specify whether the employee is a proprietary or nonproprietary director.
Insurable Weeks Regular Override	Override the number of contribution weeks for a specified pay period using effective start and end dates. This value overrides the Insurable Weeks Formula value on the Organization Statutory Deductions card. To override insurable weeks for one period only, attach an Override Insurable Weeks nonrecurring element to the employee record for the relevant processing pay period and enter a value. For positive offset payrolls processed outside the calculated pay period, make the override element effective in the processing pay period rather than the calculation pay period.
PRSI Exemption	Indicate an employee’s exemption from PRSI and the exemption reason. Use effective start and end dates to specify the exemption period.

Calculation Component

Description

Extra Employment Details

Specify whether community employment applies to the employee. You can also specify whether the employee is a proprietary or nonproprietary director.

Insurable Weeks Regular Override

Override the number of contribution weeks for a specified pay period using effective start and end dates. This value overrides the Insurable Weeks Formula value on the Organization Statutory Deductions card.

To override insurable weeks for one period only, attach an Override Insurable Weeks nonrecurring element to the employee record for the relevant processing pay period and enter a value.

For positive offset payrolls processed outside the calculated pay period, make the override element effective in the processing pay period rather than the calculation pay period.

PRSI Exemption

Indicate an employee’s exemption from PRSI and the exemption reason. Use effective start and end dates to specify the exemption period.

In the Taxes component group, select Pay As You Earn. The Pay As You Earn component, its effective start date, employer reference, and component details are created automatically. In the calculation component details, review or update the following fields as required.

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 the RPN applies
End Date	Last date of the current tax year. This value is supplied by default.
Information Source	Revenue Payroll Notification
Tax Basis	The default tax basis is Emergency. Available values are Cumulative, Emergency, and Week1.
PAYE Pay to Date Previous Employment	Employee pay that applies to 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 tax rate.
Yearly Rate 1 Cutoff	Standard-rate cutoff point.
Tax Rate 2 Percent	Higher tax rate.

In the Taxes component group, select Create in Calculation Components. Select the calculation component and its parent component, then enter the applicable information.

Other calculation components for taxes

Calculation Component	Description
Exclusion Order	Specify that an exclusion order exists for the employee and enter the start and end dates. An RPN is not available when an employee has a PAYE Exclusion Order.
Legacy Information	Specify the Employer Reference used when a PPS number is unavailable. If the reference was used in the legacy application, replicate it here when no PPS number is present. Keep this information consistent in all Payroll Submission Reports after migration until the PPS number is sent.
Local Property Tax	Specify the original LPT amount received in the RPN response and the deduction start and end dates. Payroll deducts the LPT amount evenly across the pay periods remaining in the tax year. The deduction starts in the next pay period.
PAYE Additional Information	Additional Emergency Tax Periods: Specify additional emergency tax periods when the employee starts in the Emergency Weeks process. Shadow Payroll Indicator: Select Shadow Payroll to indicate and manage tax obligations for an employee working abroad. Important: After you set the Shadow Payroll option, you cannot change it during a payroll period. Calculate the main payroll run and all later payroll runs using the selected option for the entire payroll period. Yearly Foreign Tax Credit: Enter the annual foreign tax credit amount when it applies to the employee. Foreign tax credit is not provided on the RPN. Periodic Foreign Tax Credit: Enter the periodic foreign tax credit amount for an employee eligible for real-time foreign tax credit relief. Payroll uses the periodic amount to reduce the employee’s income tax liability. The calculation returns the foreign tax credit amount with other PAYE results and balances for processing and reporting. Important: Enter a value in either the Yearly Foreign Tax Credit field or the Periodic Foreign Tax Credit field. Do not enter values in both fields at the same time. Foreign tax credit relief processed through PAYE does not replace the employee’s formal foreign tax credit claim through an Irish income tax return after the end of the tax year. Where the employee’s effective tax rate is lower than the foreign effective tax rate, relief is granted partly as a tax credit and partly by reducing the double-taxed income assessed. Section 984 Dispensation: Use this option for an Irish private-sector employer to withhold PAYE on Irish income for employees who do not reside in Ireland. SARP: Select the check box for eligible individuals assigned to work in Ireland from overseas. The relief applies only to PAYE, not USC or PRSI. It can be claimed for up to five years and applies to 30% of income between the lower and upper thresholds. SARP Start Date: Indicate the date from which SARP applies to the employee.

Calculation Component

Description

Exclusion Order

Specify that an exclusion order exists for the employee and enter the start and end dates.

An RPN is not available when an employee has a PAYE Exclusion Order.

Legacy Information

Specify the Employer Reference used when a PPS number is unavailable. If the reference was used in the legacy application, replicate it here when no PPS number is present. Keep this information consistent in all Payroll Submission Reports after migration until the PPS number is sent.

Local Property Tax

Specify the original LPT amount received in the RPN response and the deduction start and end dates.

Payroll deducts the LPT amount evenly across the pay periods remaining in the tax year. The deduction starts in the next pay period.

PAYE Additional Information

Additional Emergency Tax Periods: Specify additional emergency tax periods when the employee starts in the Emergency Weeks process.

Shadow Payroll Indicator: Select Shadow Payroll to indicate and manage tax obligations for an employee working abroad.
Important: After you set the Shadow Payroll option, you cannot change it during a payroll period. Calculate the main payroll run and all later payroll runs using the selected option for the entire payroll period.
Yearly Foreign Tax Credit: Enter the annual foreign tax credit amount when it applies to the employee. Foreign tax credit is not provided on the RPN.
Periodic Foreign Tax Credit:
Enter the periodic foreign tax credit amount for an employee eligible for real-time foreign tax credit relief. Payroll uses the periodic amount to reduce the employee’s income tax liability. The calculation returns the foreign tax credit amount with other PAYE results and balances for processing and reporting.

Important: Enter a value in either the Yearly Foreign Tax Credit field or the Periodic Foreign Tax Credit field. Do not enter values in both fields at the same time. Foreign tax credit relief processed through PAYE does not replace the employee’s formal foreign tax credit claim through an Irish income tax return after the end of the tax year.
Where the employee’s effective tax rate is lower than the foreign effective tax rate, relief is granted partly as a tax credit and partly by reducing the double-taxed income assessed.
Section 984 Dispensation: Use this option for an Irish private-sector employer to withhold PAYE on Irish income for employees who do not reside in Ireland.
SARP: Select the check box for eligible individuals assigned to work in Ireland from overseas. The relief applies only to PAYE, not USC or PRSI. It can be claimed for up to five years and applies to 30% of income between the lower and upper thresholds.
SARP Start Date: Indicate the date from which SARP applies to the employee.

Select Associations. The Associations component group displays the tax reporting unit associated with an automatically created calculation card. If you created the card manually, select Create and associate the card with the relevant tax reporting unit.

Note: If you created a unique reference for batch processing the Run Payroll Submission Request process, select Edit > Correct for the tax reporting unit, set the Tax Reporting Unit Batch value, and save the change.
Select Association Details. Calculation components are associated with assignments. If the employee has more than one assignment, update or correct the associations as needed.
Save and close the record.

What to do next

Withholding Taxes Shadow Payroll and Section 984 Dispensation

As an Irish private-sector employer, you can use Section 984 TCA 1997 to withhold PAYE on income that relates only to Irish workdays. The PAYE calculation-card component and its details include Withholding Taxes for nonresident employees who work both inside and outside Ireland. These employees are taxed only on income from days worked in Ireland.

To use this option:

Create an Information element for Withholding Taxes.
Add an input value named Amount with Special Purpose set to Primary output value and Unit of Measure set to Money.
Add the subclassification rule Information Subject to Section 984 Dispensation. Adding the rule automatically creates balance feeds to Gross Earnings and Gross Pay.
Use the appropriate fast formula to take the Section 984 Dispensation record as input and return it as a run result in payroll for reporting, when required.
On the employee Statutory Deductions calculation card, in PAYE Additional Information Details, select the Section 984 Dispensation option.
Run payroll. The calculated values in the run results details include withholding-tax information for the employee.

Shadow Payroll

Shadow Payroll processing includes withholding net pay for employees with sourced employment income outside Ireland. Payroll calculates statutory deductions as if the employee were paid in Ireland, although the employee does not receive the payment. The application generates a Shadow Payroll Withholding amount element entry that reduces net pay to zero.

Special Assignee Relief Programme SARP

The Special Assignee Relief Programme provides income-tax relief for certain employees assigned to work in Ireland from abroad. The relief can be claimed for up to five consecutive years. It applies only to PAYE, not USC or PRSI, and is calculated as 30% of income between the lower and upper thresholds.

To set up SARP:

Create a recurring or nonrecurring SARP Income Information element. Set the applicable earnings as standard or supplemental to present SARP-relevant income as an Information element, a Standard Earnings element, or a Supplemental Earnings element.
Create one input value named Amount and set its unit of measure to Money.
Create a balance feed from the user-defined element and input value to the predefined SARP Relevant Income balance. Use Amount for an Information element and Pay Value for a Standard Earnings or Supplemental Earnings element.
The SARP balances with the Information category are SARP Relevant Income and SARP Relief.
Use the Element Entries task to attach the SARP Income element. Enter the income applicable to the period in the Amount field. Enter a period amount, not an annual amount.
On the employee Statutory Deductions calculation card, in PAYE Additional Information Details, select SARP and enter the SARP Start Date.
Save the changes and run payroll. Payroll calculates the relief value and uses it to reduce the Gross Taxable Pay balance.

Note: The predefined indirect-result SARP information element stores the calculated relief value returned by the formula. Payroll uses this value to reduce gross taxable pay.