Earning less than Euro 500 a week and still paying Health Levy !

the_head

I've just been put on a 3 day week and as I am now earning less than Euro 500
a week it was my understanding that I should be exempt from paying the Health Levy.
However, on my first payslip for my new reduced working week there is a 2% Health Levy deduction.

Even when I was working full time and earning over Euro 500 weekly, my Health Levy deduction was 2%. This was increased from 1% in May 2009.

Now.. what has me baffled about all this is.. shouldn't the Health Levy be 4% (doubled from 2% May 2009) ?

It might have been an oversight on my employer's/his accountant part in making the right calculations/deductions or maybe I'm missing something and 2% is correct.

I'm unsure about what to do.. I want to inform my employer that I should be exempt from Health Levy payments due to my reduced income but I might also be alerting him to the possible fact that for the last.. I don't know long.. he's been making incorrect deductions.

In my attempt to save myself a few quid a week I could end up getting a Health Levy bill for hundreds !!

What are the repercussions of me saying something/not saying anything ?
What would you do ?

Legend100

are you sure its not the income levy you are being deducted because that went from 1% to 2% in May 09 and is payable for income over 289 a week?

If it is not the income levy, then I don't think you should be paying it

the_head

Cheers Legend100.. you're spot on ! It is the Income Levy.
I don't know how I missed it, my heads been all over the place in the last couple of weeks what with calculations, documents, Social Welfare etc..

I've got one more question before I let you go !

When I was full time and earning over Euro 500 weekly, apart from the regular deductions.. 20% PAYE (less Tax Credits), 2% Income Levy, PRSI ( A1 Class.. 4% on the first €127, 8% on the balance ), there doesn't appear to be any accounting for the Health Levy at 4%. Theres no mention of it on my payslip !

Once again, am I missing something ? It's not included in my PRSI contributions, is it ?

Any thoughts ?

MOH

the_head wrote: »

Once again, am I missing something ? It's not included in my PRSI contributions, is it ?

Any thoughts ?

I think it is actually, thought I saw that in something I was reading last week (could be wrong though)

maddogcollins

It is normally calculated as part of your PRSI Contribution.

the_head

Thanks for taking the time out to reply guys.

I really should have been more clued up on these deductions ages ago.
It's only in recent weeks that I've beeen forced to scrutinise my salary income/outgoings.

namenotavailablE

You can check your net pay calculations using my spreadsheet at http://taxcalc.eu/monthlyss