Previously we had been told that for all practical purposes we could ignore the lower €4004 threshold, however today Revenue stated that the arrangements for the treatment of the lower threshold of Univeral Social Charge (€4004) has been changed so that those earning €4004 are not to be subjected to charge.

This means that if an employees Gross pay for USC does not exceed €77 per week then they will not be subject to the USC, however if the Gross pay for USC goes over the €77 euro limit by even 1 cent then the employee must pay USC on the whole amount, and not just the amount in excess of €77.

The threshold of €4004 equates as follows
  • Weekly             €77
  • Fortnightly        €154
  • Monthly            €334
  • Twice monthly €167 
  • Bimonthly         €667
  • Quarterly          €1001
  • Half Yearly       €2002