Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Pay raise

  • 04-02-2011 10:12am
    #1
    MagicSean
    Closed Accounts Posts: 9,897 ✭✭✭


    I was due a pay raise last September. Due to a paperwork problem I didn't get it. I'm due to get it in a few weeks and it will be backdated to September so it will be a large lump sum. I will have to pay the new USC and higher paye rates too. Is there any way to claim that back for the portion that was earned last year before the tax changes?


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    k_mac wrote: »
    I was due a pay raise last September. Due to a paperwork problem I didn't get it. I'm due to get it in a few weeks and it will be backdated to September so it will be a large lump sum. I will have to pay the new USC and higher paye rates too. Is there any way to claim that back for the portion that was earned last year before the tax changes?

    Simple answer - no unfortunately. You are taxed to PAYE etc when you are paid, regardless of when the money is earned.

    However, you'll probably be hit with the top rate of USC, meaning you'll have a refund of USC due to you at/after the end of the year.

    (It's worked out against you, but if this was 5 years ago, after a giveaway budget, with lower taxes in the new year, it would be working out in your favour...)


  • #3
    MagicSean
    Closed Accounts Posts: 9,897 ✭✭✭MagicSean


    How do you claim that refund? Can it be done for prsi and the pension levy.


  • #4
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    k_mac wrote: »
    How do you claim that refund? Can it be done for prsi and the pension levy.

    Presume you are public sector if paying pension levy. You will probably also be hit with a higher rate pension levy in the week of getting the backdated lump sum.

    You shouldn't have to claim the refund yourself though. If you've been working all year for your employer they are supposed to balance the USC and Pension levy in the last payroll run - by looking at your total pay for the year, and total USC / Pension levy deducted, so you should get the refund at Xmas, just when you want it!

    One final caveat before you go off thinking you'll be getting loadsa dosh back; it all depends on what % bracket you normally pay, and what rate the lump sum pushes you into...

    Oh and I nearly forgot, AFAIK there's no reclaim of PRSI, it's always a standalone weekly %, you can't aggregate it at the year end.


  • #5
    MagicSean
    Closed Accounts Posts: 9,897 ✭✭✭MagicSean


    Cheers. I reckon I'll be lucky if I get 30% of my gross pay.


  • #6
    MagicSean
    Closed Accounts Posts: 9,897 ✭✭✭MagicSean


    Just as an update. My calculations are that I should have received just over €5000 in back pay. €1700 was paid to me. Pretty close to my estimation of 30%. What a great country.


  • Advertisement
Advertisement