Calculating Wages/Tax & PRSI

becca boop

Hi,
Could someone explain to me step by step how to calculate wages tax and prsi please.

i would be very grateful if you could help me out? I need to calculate my wages over a 4 wk period.. i am a single parent in receipt of lone parents allowance of 12378.00 per year which is taxable- this has reduced my srcop to 28022.00per year - so this is the amount of my income that is taxable @ 20%.

I have been offered a part time job of 20hrs a week and really need to work out my wages/tax/prsi etc...


would be very grateful if you could show me how to work out my wages over a 4wk period? i need the weekly breakdown say starting a week 1, 2, etc ...


Weekly hours worked = 20pw @ 8.65per hour

my tax cert is as follows:

weekly tax credits = €59.52pw

Std rate cut off = €538.89pw


My PRSI Code: A0 (i think)

thanks a million for any help

demijose

Per year Per week

New rate*of One-Parent Family Payment 12378 per year i.e 238.04 per week
Add*Gross weekly income from work 8.65 @ 20pw 173.00
Total*Gross Weekly Income* (a) 411.04

Less Income Levy @2% of Gross income(b) 8.22

Less PRSI
4% 127.00 5.08
8% 284.04 22.72

Less Paye @ 20% on Gross Weekly Income (d) 82.21

Total Of all taxes (b + C + d) 118.23

Less tax Credit -59.52

Net Tax to be paid (e) 58.71

Net salary after tax (a - e) 352.33


I do not know whether you have to pay Pension Levy...if then your tax might rise to another 15 Euro.

Hope this will help.. i am new to ireland and it has been only a month since my arrival. To all tax experts please correct the figures If i am worng...
Thanks

becca boop

thanks for your help.

My PRSI code is AO - do i have to pay prsi on lone parents allowance? i didn't think so? if i'm right, then should i be paying prsi on the balance?

also - does everyone, regardless of earnings have to pay the income levy?

thanks for response

millyvanilli

as far as I know there is no levy on social welfare payments .levy is only payable when you earn over 289 euro . but when you earn over 146 euro ,the one parent family payment is reduced by half of the amont over the 146 ,checK on www.welfare.ie and for the levy on www.revenue.ie ,hope this helps
MV

demijose

Sorry since i am new to this tax laws. i was wrong with the above calculations.

You need not pay PRSI on your lone parent allowance.
And since your weekly other income does not exceed 352 you need not pay any PRSI.

for income Levy : your gross weekly income is 173/- which is less than 289/- and hence does not apply for income levy.

Overall only the PAye is applied on your income @ 20% less tax credit.

Thanks and sorry for the earlier response.

here is the link to the page which explains all this

http://www.citizensinformation.ie/References/worksheets/worksheet-one-parent-family-payment-and-income-from-work

Thanks

becca boop

thank you both for your responses.

I don't know anything about payroll - but partly guess i was right about the prsi and levy..

so to sum up i will pay tax on my earnings (€173) less my tax credit?

(i did ring the revenue before posting here and was told me i will only pay tax if i earn over 295.55pw? - was getting really confused so just said - thanks and hung up...

millyvanilli

you say your tax credit is 59.52 per week so you will pay no tax on 173 ..(173 @20% = 34.60 and as this is less than your tax credit ..no tax !) but as I said earlier your one parent family may be reduced by 13 or 14 euro (50% of excess over 146 euro ) and maybe let welfare know that you are taking a part time job .mv

becca boop

thanks, I really do appreciate u all taking the time to help me out.

I'll ring Social Welfare before my start date.

for future reference if i want to try to calculate earnings (take home etc)

is there a guide i should use?

for example:

Gross
minus Levy (if applicable)
minus prsi (if app)
minus tax @ 20%
plus tax credit?

thanks

millyvanilli

Example of Calculation of Wages






Gross Wages (per week)

€ 360.00

Deductions



Tax (PAYE)( see below)
€ 13.00


PRSI (see below)
€ 9.32


Levy @ 2%
€ 7.20


total deductions -

€ 29.52





Net Wages

€ 330.48









PAYE Working



360 @ 20%
€ 72.00


less weekly tax credit
-€ 59.00



€ 13.00






PRSI Working



Class AL



First 127 -nil
€ -


Balance 233 @ 4%
€ 9.32






ie 127 + 233 = 360







your employer will also pay 10.75% prsi on your wages


I did this example as if your wages from employment was 360 and used 52 even as a tax credit ..hope you can follow it .You can find the different rates for prsi on www.welfare.ie .hope this helps
I copied and pasted from word so hope its ok

becca boop

millyvanilli wrote: »

Example of Calculation of Wages






Gross Wages (per week)

€ 360.00

Deductions



Tax (PAYE)( see below)
€ 13.00


PRSI (see below)
€ 9.32


Levy @ 2%
€ 7.20


total deductions -

€ 29.52





Net Wages

€ 330.48









PAYE Working



360 @ 20%
€ 72.00


less weekly tax credit
-€ 59.00



€ 13.00






PRSI Working



Class AL



First 127 -nil
€ -


Balance 233 @ 4%
€ 9.32






ie 127 + 233 = 360







your employer will also pay 10.75% prsi on your wages


I did this example as if your wages from employment was 360 and used 52 even as a tax credit ..hope you can follow it .You can find the different rates for prsi on www.welfare.ie .hope this helps
I copied and pasted from word so hope its ok

thanks for that you've been very helpful, really appreciate it

honeymonster

Is there an online calculator some where?