Personal Tax Liability

What is your ‘tax liability’?

• The amount of tax you are required to pay

• the amount of tax you should be paid

• The amount of paid you are required to tax

Tax is a compulsory payment to the government in Ireland.

• TRUE

• FALSE

Match the following

• Direct Tax

• PRSI

• Direct Tax

• PAYE

• Indirect Tax

• Tax Credits

• Reduces the amount of tax you pay

• VAT

What is the difference between statutory and non-statutory deductions in a payslip?

If Danielle earns €12 per hour, how much does she earn in 1 week if she works 4o hours?

Mathematical Equivalence

OFF

Do you think €12 an hour is a suitable wage in 2025? (Why / why not)

Joanne earns €40,000 a year. She pays PRSI at 4%.

How much PRSI does she pay?

(Write down your answer on page - need for next question)

Mathematical Equivalence

ON

Joanne earns €40,000 a year. She pays USC at 3%. How much USC does she pay?

(Write down your answer on page - need for next question)

Mathematical Equivalence

ON

What is the ‘Standard Rate Cut Off Point’ (SRCOP). Explain in your own words.

For Joanne’s PAYE tax liability the SRCOP tax rate is 20%.

The Standard Rate Cut Off Point amount is €35,000.

Joanne earns €40,000 per year.

How much tax must she pay at the lower rate of 20%?

(Write down your answer on page - need for next question)

Mathematical Equivalence

ON