If you are getting a One-Parent Family Payment (OPF) this worksheet will help you to work out how taking up a job will affect your weekly income.
Find your assessable income from work (see Note 1) €_______
Assessable income is your gross income less PRSI, pension contributions and trade union subscriptions.
Take away €90 from your weekly earnings (if earnings are below €90 you will keep your full OFP). Half of your weekly earnings between €90 and €425 is assessed as income.
New rate of One-Parent Family Payment €_______
To find your new rate of OPF check SW 19 Social Welfare Rates of Payment booklet to find out how much OPF is payable with your means.
Your total weekly income is your new rate of One-Parent Family Payment and your income from work before tax.
New rate of One-Parent Family Payment (see Step
1 above) €_______
Add Gross weekly income from work €_______
Total Gross weekly income €_______
Your total weekly income is your new rate of One-Parent Family Payment and your income from work after tax. From this calculation you will be able to find out if you are financially better off.
Gross weekly income €_______
Less Universal Social Charge - see Note 2 below €_______
Less PRSI paid each week - see Note 3 below €_______
Less income tax paid each week - see Note 4 below €_______
Total net income €_______
Remember, you may have to pay child-minding and travel costs out of your net income
You will pay a Universal Social Charge (USC) on your gross income from work (if your overall income is above €13,000). Find out more about the Universal Social Charge. You do not pay USC on your OFP payment.
You pay PRSI on income from your work only, not on your One-Parent Family Payment. If you earn less than €352 a week you do not pay any PRSI. You only pay PRSI for the weeks you work.
You pay income tax (PAYE) on all your income: that is your gross weekly income (see Step 2 above).
To calculate how much income tax you pay each week, multiply your gross weekly income by 20% to get the gross amount of income tax payable each week.
Total gross income by 20% €_______
Less Weekly Tax Credit (see below for calculation)
Total income tax paid each week €______
(Note that in practice your OFP payment is coded in against your tax credits and rate band by Revenue - this worksheet simply shows you how to work out how income from work will affect your OFP.)
Tax Credit for 2016
Personal Tax Credit: €1,650
Add Single Person Child Carer Tax Credit (if eligible): €1,650
Add PAYE/Employee Tax Credit: €1,650
Total Tax Credit: €4,950
Weekly Tax Credit: €95.19
If you are a tenant in private-rented accommodation, you may be able to claim some tax relief for rent paid.
If you are a widowed parent you can claim a Widowed Parent Tax Credit.
You should keep your medical card for 3 years from the date you take up employment – check with your local Health Service Executive Area.
See worksheet on Calculating Rent Supplement to work out how your Rent Supplement will be affected by income from work.
Family Income Supplement (FIS)
You can claim FIS if you are working at least 19 hours per week, or 38 hours per fortnight, and your income falls below the income threshold for your family size. Family Income Supplement is not taxable and does not affect secondary benefits.
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000. The Phone Service will operate Monday to Friday, 9am to 6pm during January 2017. You can also visit your local Citizens Information Centre.