Thursday 14 December 2017

Net Income Calculator Assumptions

Net Income Calculator is based on the following assumptions:

1. Income

• If employed, income includes salary and benefits in kind but no other income.

• If self employed, only includes income outside of the PAYE system.

• Income taxed at special rates (e.g. deposit interest subject to DIRT) and special tax reliefs (e.g. mortgage interest relief) are not relevant.

• Income excludes all welfare payments.

2. Pension Contributions and Net Take-Home Pay

• Pension contributions paid, along with tax payable, are deducted from gross income to arrive at net take-home pay.

3. Tax Payable Amount

• Includes PRSI, USC and Income tax (but not property taxes).

4. Age

• Aged between 16 and 99 years of age.

5. Children

• Children are dependent children for which you are entitled to child benefit.

6. Single

• If you select this and have children, it is assumed that you do not qualify for the single parent credit or single parent standard rate cut-off band as you are living with your partner.

7. Single Parent

• Your dependent children live with you for part of the year and you are not living with a partner.

8. Married 2-earner

• Income is earned evenly by both earners and comes from the same source (i.e. employed or self-employed).

9. Tax Credits

• The only tax credits included where applicable are the Personal tax credit, PAYE tax credit, Age tax credit and Home Carer credit.

10. Home Carer Tax Credit

• Child benefit is received in respect of dependent children, and the spouse does not earn income in excess of €5,080.

11. PRSI

• The monthly figures assume that PRSI is collected evenly throughout the year.

• Employed persons assumes class A PRSI.

• Self-employed persons assumes class S PRSI.

12. Universal Social Charge (USC)

• Income equal to or less than €10,036 is exempt from USC in 2012 (€4,004 in 2011).

13. Property Tax

• All properties are in the State and one house is your principal private residence.

• Relates solely to NPPR charge and new property tax – payable by the owner of the property and ignores any exemptions available from the new property tax.

14. General

• The calculator is for general information purposes only and is not intended to cover every eventuality. Professional advice should be taken regarding your specific circumstances.

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