Name two statutory deductions that are taken from an employee’s gross income - Junior Cycle Home Economics - Question 8 - 2013
Question 8
Name two statutory deductions that are taken from an employee’s gross income.
(i)
(ii)
Worked Solution & Example Answer:Name two statutory deductions that are taken from an employee’s gross income - Junior Cycle Home Economics - Question 8 - 2013
Step 1
(i)
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The first statutory deduction that is taken from an employee’s gross income is the Pay Related Social Insurance (PRSI), also known as the Universal Social Charge. This is a social insurance contribution that helps fund various social welfare benefits.
Step 2
(ii)
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The second statutory deduction is the Pay As You Earn (PAYE) tax. Other potential deductions in this category include Income Levy and the Health Levy, which serve to contribute towards the government's funding of public services and healthcare.
Join the Junior Cycle students using SimpleStudy...
