As a result of the recent enactment of the 2011 Finance Act, there has been a significant change to the USC For an individual holding a current Full Medical Card the maximum rate of USC is now 4% instead of the previous 7%. The employer must satisfy themselves that the employee hold such a card before implementing the change. This change is backdated to 1 January 2011.

In cases where an employee holds a current Full Medical Card, and have paid USC at the 7% rate, that employee is entitled to a full refund immediately rather than waiting until the end of the tax year.
Please note that once an employee has held a Full Medical Card for any period during the course of current (2011) tax year the maximum rate of 4% applies for the full tax year, even if the employee loses the medical card during the year. Equally if an employee gains a full medical card, in June for example, then the maximum USC rate is 4% for the whole tax year and a refund maybe due depending on earnings.
Rates for individuals in possession of a Full Medical Card are as follows:
  • Income up to €10,036 (€193 per week or €837 per month)                      2%
  • Income above €10,036 (€193 per week or €837 per month)                    4%
These rates are the same as those applying to employees aged 70 and over.
For further details on the operation of the USC, please consult the Revenue website at ww.revenue.ie and in particular the USC FAQs (frequently asked Questions) at www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf  The FAQs are being continually updated and are a required read.
USC & Full Medical Card
To make these changes in EuroPayX, the following steps are necessary for relevant employees:-
1                     View Modify Employee Details or choose employee from left-hand panel
2                     Open relevant Employee
3                     Go to USC tab
4                     Tick the new Full Medical Card check box
5                     Save and Exit employee screen
The rest is automatic. Once this check box is turned on the maximum rate of USC applied to this employee will be 4% and on the next payroll calculation run, the employee will get a refund if one is due.