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Questions and Answers
What are the two main types of deductions from pay shown on a payslip?
What are the two main types of deductions from pay shown on a payslip?
Statutory deductions and Non Statutory deductions
What are statutory deductions?
What are statutory deductions?
Compulsory deductions required by law
Give three examples of statutory deductions.
Give three examples of statutory deductions.
Pay As You Earn (PAYE) income tax, Pay Related Social Insurance (PRSI), Universal Social Charge (USC)
Give three examples of non statutory deductions.
Give three examples of non statutory deductions.
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What are non statutory deductions?
What are non statutory deductions?
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What is the purpose of the Pay As You Earn (PAYE) income tax system?
What is the purpose of the Pay As You Earn (PAYE) income tax system?
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What benefits can employees claim in the future through Pay Related Social Insurance (PRSI)?
What benefits can employees claim in the future through Pay Related Social Insurance (PRSI)?
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Who is required by law to pay statutory deductions?
Who is required by law to pay statutory deductions?
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What is the Universal Social Charge (USC) used to fund?
What is the Universal Social Charge (USC) used to fund?
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What is the difference between net pay and gross pay?
What is the difference between net pay and gross pay?
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Study Notes
Deductions from Pay
- There are two main types of deductions from pay: Statutory deductions and Non-Statutory deductions.
- Statutory deductions are compulsory and required by law.
Statutory Deductions
- Pay As You Earn (PAYE) income tax system: tax is paid on income as it is earned.
- Pay Related Social Insurance (PRSI): allows employees to claim certain benefits in the future, e.g. state pension.
- Universal Social Charge (USC): applies to all workers whose income is above a certain limit and is used to fund government spending.
Non-Statutory Deductions
- Not compulsory, but workers may choose to pay them.
- Examples: Health Insurance, Pensions, Trade Union Subscriptions, and Credit Union savings.
Gross Pay and Net Pay
- Gross pay: total pay before any deductions are taken.
- Net pay: Gross pay - Total deductions.
- Net pay is also called "take home" pay, which is the actual money received.
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Description
Test your knowledge on deductions from pay with this quiz! Learn about the two main types of deductions shown on a payslip: pay statutory deductions and non-statutory deductions. Understand the importance of compulsory deductions such as PAYE and PRSI.