Michael Healy-Rae (Kerry South, Independent)
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Question 139: To ask the Minister for Finance if a person (details supplied) will be entitled to a refund of the universal social charge; and if he will make a statement on the matter. [31486/11]

Michael Noonan (Limerick City, Fine Gael)
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The Universal Social Charge (USC), which came into effect on 1 January 2011, is a tax payable on gross income (after any relief for certain trading losses and capital allowances, but before pension contributions). An individual is liable to pay the USC if his/her gross income exceeds the threshold of €4,004 per annum. USC is not levied on payments from the Department of Social Protection. For 2011, the rates are:

· 2% on the first €10,036

· 4% on the next €5,980

· 7% on the balance

Currently, the USC is calculated on a pay period by pay period basis. This means that, where an individual's income from employment exceeds €77 per week, the employer will compute and deduct USC from the gross income due to the employee. The rate at which it is deducted will depend on the gross income payable for that week.

Where USC has been deducted and, either, the individual's gross income is below the threshold amount, or, the USC should have been charged at a lower rate, an overpayment will arise.

If after the end of the year the taxpayer, who is the subject of the question, believes they have overpaid USC, they should contact their local Revenue office for a review of their USC deductions. Following such review, any amount overpaid will be refunded to the taxpayer.