Ignoring pension contributions, say you earn €100k per annum
The 10k between 90 and 100k is taxed at 40% but also 4% PRSI and 8% USC
You end up getting €4,800 into your hand
If instead you pay that 10k into an AVG, there's no tax or PRSI
liability but I think USC still need to be paid on it?
So your net income will drop by €4800 + 800 = €5,600 as compared to if
you'd taken the full disposable income into your hand.
Is that right?
The 10k between 90 and 100k is taxed at 40% but also 4% PRSI and 8% USC
You end up getting €4,800 into your hand
If instead you pay that 10k into an AVG, there's no tax or PRSI
liability but I think USC still need to be paid on it?
So your net income will drop by €4800 + 800 = €5,600 as compared to if
you'd taken the full disposable income into your hand.
Is that right?