Calculating Tax

godtabh

How do you do it.

If I earn over €30k single how do I calculate my P.A.Y.E and P.R.S.I?

kluivert

Simple,
(a)
What ever you earn up to 32000 tax it at 20%
What ever you earn over 32000 tax it at 42%.

(b)
Find out how much your tax free credits is a year.
Standard single working person is:
Paye Credit 1490.
Single Person 1630.

Take (a) from (b) equals total paye tax.

Calculation of Prsi depends on which group you fall under.
Normally this is Schedule A for us working class people. But depends on how much your earn per week. Ill assume you earn more than 440e a week therefore you should come under Sch. A1

Per Week ok:
(a)
First €127 taxed at 2% equals 2.54
(b)
Balance taxed at 6%. So what ever you earn each week before tax, take 127 away from it and tax that at 6%

Now add (a) and (b) together and mutliple by 52 weeks (52 weeks in the year)

Now add your total from Paye and Prsi answer and take that away from your annual salary.

Bingo, your now a payroll clerk!

godtabh

good stuff!

ALl i know about pay rolls is it comes in at the end of the month and then i try and spend it as fast as I can

Edit: Just read over it & I cant get it to work. A chance some one could spell it out for me with an example for 32K?

kluivert

Paye Calculation:

32000 @ 20% = 6400 Paye Tax

Less: Tax Credits

Single Person = 1630
Paye =1490
Total 3120

Total Paye Tax Paid is 3280

Prsi Calculation:

32000 a year is the same as 615.39 a week

First 127 taxed at 2% = 2.54
Balance (488.39) taxed at 6% = 29.30

Total Prsi per week is 31.84
Total Prsi per year ie 52 weeks is 1655.68

Summary of above:

Salary is 32000 a year
Paye Tax is 3280 a year
Prsi Tax is 1655.68 a year

Net annual income is 27064.32
Per week that is 520.48.

Is that clear enough, if not give me a buzz.

godtabh

kluivert wrote:

Paye Calculation:

32000 @ 20% = 6400 Paye Tax

Less: Tax Credits

Single Person = 1630
Paye =1490
Total 3120

Total Paye Tax Paid is 3280

Prsi Calculation:

32000 a year is the same as 615.39 a week

First 127 taxed at 2% = 2.54
Balance (488.39) taxed at 6% = 29.30

Total Prsi per week is 31.84
Total Prsi per year ie 52 weeks is 1655.68

Summary of above:

Salary is 32000 a year
Paye Tax is 3280 a year
Prsi Tax is 1655.68 a year

Net annual income is 27064.32
Per week that is 520.48.

Is that clear enough, if not give me a buzz.

Yeah its a bit more clear now.

I never took into account over time. If I go above the 32k the balance is taxed at 42% for PAYE and PRSI is calculated the same way. Is this correct?

dguldbrandsen

There is a handy taxation tool here:
http://www.esatclear.ie/%7Egrabe/TaxCalc/TaxCalc.html

Cheers,
Daniel

godtabh

dguldbrandsen wrote:

There is a handy taxation tool here:
http://www.esatclear.ie/%7Egrabe/TaxCalc/TaxCalc.html

Cheers,
Daniel

Thanks.

Will give this a bash later and comapre it to my sums!

py2006

kluivert wrote:

What ever you earn up to 32000 tax it at 20%

Hi Kluivert, I thought it was up to 28,000 at 20% ??

indiewindy

py2006 wrote:

Hi Kluivert, I thought it was up to 28,000 at 20% ??

Assuming you are single here are the figures direct from the Revenue site.
It was €28,000 in 2004


Personal Circumstances Tax Year 2006
Single/Widowed
without dependent children

32,000 @ 20%
Balance @ 42%