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.