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PRSI / PAYE questions

  • 25-07-2012 10:14am
    #1
    Registered Users, Registered Users 2 Posts: 367 ✭✭


    Hi,

    When calculating PRSI should I deduct my pension contribution from gross first or start with the gross figure.

    example - if my gross weekly pay is €500 and my pension contribution is €50 with the weekly cut-ff being €127:

    Is my weekly PRSI contribution (500 - 127) * .04 = 14.92

    or is it [(500 - 50) - 127] *.04 = 12.92

    Also, I read online that my tax credit as a single person is 1650 / year, which is 137.50 / month.

    On my payslips it's down as 292.50? Is this incorrect or am I missing something?


Comments

  • Registered Users, Registered Users 2 Posts: 59,712 ✭✭✭✭namenotavailablE


    Employee PRSI is now calculated before deducting pension contributions. You used to deduct such contributions from gross pay and then deduct the €127 before applying the relevant percentage PRSI (which depends on your "PRSI class"- most employees are class A1 but in the specific example you outlined you'd be a class AL employee). The new rules applied effective 1 January this year.

    For a tax calculator, see my spreadsheet linked in my signature (only viewable if you're logged in) or available on the 'About me' tab of my profile


  • Registered Users, Registered Users 2 Posts: 367 ✭✭jimmurt


    Thanks for the reply.

    I got a 'service temporarily unavailable' when I clicked on that link.

    I'm ok on calculating all my taxes, just need to know about the tax credit bit which is confusing me.


  • Registered Users, Registered Users 2 Posts: 59,712 ✭✭✭✭namenotavailablE


    The typical tax credits for a single person, employee (not a company director) would be €3300 per year (€275 per month).

    As you're getting an extra €17.50 per month (€210 per year) it must be because of something specific to your employment or circumstances.

    It's probably easiest if you request a copy of your certificate of tax credits from the tax office to see how the total is computed.

    That calculator should generally be available most of the day- the hosting site occasionally is offline but reverts back pretty quickly.


  • Registered Users, Registered Users 2 Posts: 367 ✭✭jimmurt


    Ok, thanks.


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