Calculating PRSI and PS pension levy

Yorky

Does anyone know how to definitively manually calculate the PRSI and pension levy payable on a public sector salary?

For PRSI calculation purposes, which of the following should be deducted from the gross salary:

Income levy, Pension levy, Superannuation and Widows and Orphans?

For the pension levy, which should be deducted? How do you allow for tax relief on this also?

I know the rates - First 15k @3%, next 5k at 6% and balance at 10% but how do you actually allow for tax relief and calculate the amount payable each pay period?

Thanks in advance.

Mr. Incognito

God- we could be hear all day.

There is a guide to the Income Levy on www.revenue.ie.

PRSI and the health levy are too complex to bang out unless one knows the specifics and I do not advise posting your specifics on here as I'll have a glut of people doing the same and the forum is NOT going down that route.

If it happens I'll lock the threads.

some things fall to the levy some do not etc.

I'd have a look at some online calculators to do the work for you. A number of these are available online free.

namenotavailablE

My calculator [Excel spreadsheet] at http://taxcalc.eu/monthlyss handles public sector specifics.

If you need assistance with it, either PM me here or email the address shown on the spreadsheet itself.

To answer your PRSI question: No, Yes, Yes and Yes

To answer your pension levy question: You're taxed on the income after deducting all pension related deductions, including the pension levy. that's how the tax relief is given- it reduces your gross income.

However, I'd second the preceding advice re using one of the free calculators (unless you have a specific interest in preparing one yourself).

Yorky

Thanks for the detailed reply.

Anamarie

Hi All,

Can someone tell me how do I calculate PRSI if I am an employer?
Let's say the employee will be working part time, with wages less than 352eur/wk.
Do I just have to apply the 8.5% rate and that's all?

Also, we may be able to give him a commision..and sometimes he can earn more than 352wk... Than I just take off 127eur and apply the rates?

Do I have to keep separate accounts for levy?

I am very very new...sorry it it sounds stupid. Thanks!!!!!

namenotavailablE

Payroll calculations are cumbersome to perform manually if you're not familiar with the myriad rules, thresholds and rates, so your best bet is to buy a payroll application- I'm not sure but you might even be able to get it for free if your staff numbers are small!

Try Sage.ie, Payback.ie or Collsoft.ie . [I'm not affiliated with any of these companies].

You could also try downloading my Excel spreadsheet from http://taxcalc.eu/monthlyss.

It computes PAYE/PRSI (employee and employer) /health Contribution/Income levy calculations for weekly/fortnightly/4-weekly/monthly staff but -although it has been tested quite a lot- it doesn't have any warranty about the 100% accuracy of every conceivable calculation for every conceivable situation- caveat emptor!.

Anamarie

Thanks a lot for oyur reply! I will try them..mybe I'll sort this out eventually:)

TiGeR KiNgS

I done a test on that calculator and found basic PRSI appears to be off by one 1 cent each week/ fortnightly, consistently. Might wanna check that out.