Additional Superannuation Contribution (ASC)
Additional Superannuation Contribution (ASC) was introduced on 1st January 2019, it replaced the Pension Related Deduction (PRD). Whereas PRD was a temporary emergency measure, ASC is a permanent contribution in respect of pensionable remuneration.
Application of ASC
ASC will apply only to individuals who are in receipt of pensionable pay and applies to a person who:
(a) is a member of a public service pension scheme or
(b) receives a payment-in-lieu of pension or
(c) is entitled to an ex-gratia retirement gratuity (annual or lump sum) on retirement
Unlike PRD, ASC is only chargeable on pensionable remuneration. Pensionable remuneration includes:
- Basic Pay (excluding non-pensionable overtime) due to the public servant in respect of that period, and
- Allowances, emoluments and premium pay (or it's equivalent) which are treated as pensionable pay
ASC qualifies for tax relief but not Universal Social Charge (USC) relief. There is employer PRSI relief in respect of ASC, it does not qualify for employee PRSI relief.
ASC Rates and Thresholds
Please note: Thesaurus Payroll Manager caters for Standard Accrual Group and Single Scheme Group. It does not cater for Fast Accrual Group.
Setting up the ASC Deduction in Thesaurus Payroll Manager
To access this utility go to Process ICON no. 1 OR Employees > Add/Amend employee details > Deductions Tab
- Select the employee to whom the deduction will apply.
- The ASC must be entered into the “Other Allowable Deduction” field as indicated.
- To enter the ASC simply type “ASC” into this dedicated narrative field, once you start to type the narrative the program will automatically complete the field for you.
Please note: you must use this default narrative of “ASC”, otherwise the deduction will not be recognised as the ASC deduction by the program and will not be applied accordingly.
The amount of the deduction to be applied does not need to be entered within the “Deductions” screen as the program will automatically apply the published rates and bands to the employee’s earnings as they fluctuate. Therefore the nominal amount can be left as zero.
Payslips > Weekly/Fortnightly/Monthly Input >
- Select the employee from the drop down list to whose earnings the ASC applies.
- Select “Deductions”. The ASC deduction will automatically calculate in line with the rates and bands and this automated deduction amount will be shown.
- To view the calculation of the ASC simply double click on the amount. A breakdown of earnings across each band and with the applicable rate will be shown.
Please note: the default ASC deduction is the Standard Accrual Group. To change to Singe Scheme Group, double click on the amount and select 'tick if member of the single scheme'.
Adjusting the ASC (override)
Should you disagree with the automated calculation of the ASC calculated by the program then simply type the desired deduction over the automated deduction amount. This manually entered amount will now be applied to the employee’s salary.
Alternatively, you can enter an overriding ASC percentage to apply on a week one/month one basis e.g. 10%.
Additional Superannuation Contribution will display separately on the Employees Payslip as ASC under the deductions section.