You are here: Home > Reference > Worksheets > Worksheet: One-Parent Family Payment and income from work

Worksheet

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.

Step 1: Find how income from work will affect your One-Parent Family Payment

Find your assessable income from work (see Note 1) €_______

Assessable income is your gross income less PRSI, pension contributions and trade union subscriptions.

Note 1

Take away €130 from your weekly earnings (if earnings are below €130 you will keep your full OFP). Half of your weekly earnings between €130 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.

Step 2: Find your new total gross weekly income

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 €_______

Step 3: Find your new total net 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 2 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

Note 2

You will pay a Universal Social Charge (USC) on your gross income from work.

The USC is 2% of gross income up to €193 per week, 4% from €194 to €308, and 7% on your weekly income above €308. Find out more about the Universal Social Charge.

Note 3
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. (If your income is over €352 you pay 4% on any earnings over €127 per week). You only pay PRSI for the weeks you work.

Note 4

You pay income tax (PAYE) on all your income: that is your Total Gross Income (see Step 2 above).

To calculate hwo much income tax you pay each week, multiply your Total Gross 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) €95.19
Total income tax paid each week €______

Tax Credit for 2012
Personal Tax Credit €1,650
Add One Parent Family Tax Credit €1,650
Add PAYE/Employee Tax Credit €1,650
Total Tax Credit €4,950

Divide by 52 to give a weekly tax credit of €95.19

Extra Benefits

Other Tax Free Allowances
You may be able to claim Mortgage Interest Relief and relief on health and tax relief on medical expences .

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.

Revenue Job Assist provides an additional tax free allowance for unemployed people and lone parents returning to work.

You can get more information about tax credits and reliefs.

Secondary Benefits
If you qualify for Revenue Job Assist then you may also keep your medical card for 3 years from the date you return to work and retain other secondary benefits such as fuel allowance etc for 3 years, provided your income is less than €317.43 weekly. Income from FIS is not taken into account for €317.43 income limit

If you do not qualify for the additional tax allowances (for example, because you were not getting OFP for 12 months or more) then you will be re-assessed on all the secondary benefits you might have had, according to the income guidelines set out for each one.

You should keep your medical card for 3 years from the date you take up employment – check with your local Health Service Executive Area.

Rent Supplement / Mortgage Interest Supplement

You can get a 'Household Income Disregard', this is a certain amount of your household income which is not taken into account. To calculate your Household Income Disregard first take the SWA rate for your household circumstances from your total income. €75 of any ‘additional household income' income above the SWA rate applicable to your household circumstances is also not taken into account. 25% of ‘additional household income’ over €75 is not taken into account. There is no upper limit on the amount that can be disregarded

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.

Back to top