Calculating Income Tax and Deductions

The video tutorial explains how to calculate take-home pay using a 2018 question. It covers the calculation of gross pay, PAYE, PRSI, and USC, including the application of tax credits. The tutorial also discusses common errors students make and provides guidance on the marking scheme.

What is the first step in calculating take-home pay according to the 2018 question?

• Calculate the total deductions

• Determine the gross income

• Identify the tax credits

• Compute the USC

How does the holiday voucher affect Ben's taxable income?

• It has no effect on his taxable income

• It decreases his taxable income

• It increases his taxable income

• It is not considered in the taxable income

What is the total gross income for Ben including his salary and holiday voucher?

• €50,000

• €65,000

• €55,000

• €60,000

What percentage is applied to the first €34,550 of Ben's income for PAYE?

• 20%

• 10%

• 40%

• 30%

How much tax is calculated at the higher rate for Ben's income?

• €13,720

• €17,090

• €10,180

• €6,910

What is the total PAYE tax after applying credits?

• €17,090

• €6,910

• €13,720

• €10,180

What is the percentage rate for PRSI on Ben's gross income?

• 4%

• 5%

• 2%

• 3%

How much is the PRSI calculated on Ben's gross income?

• €3,600

• €1,200

• €2,400

• €4,800

What is the USC rate applied to the first €12,012 of Ben's income?

• 3.5%

• 2.5%

• 1.5%

• 0.5%

What is the USC rate for the next €7,360 of Ben's income?

• 2%

• 4%

• 1%

• 3%