First pay of 2013 - what tax???

Hello Lady!

Hi folks,

I get paid every fortnight on a Thursday for the preceeding two weeks (Thurs - Wed). So this year we will get paid on the 3rd of Jan for work carried out from 20 Dec 12 - 2nd Jan 13 - so all but 2 days of that pay period will be for work carried out in 2012.

Will we be on the new PRSI rates in that pay period for the whole payment? or will it just apply to the dates in 2013?

I work in a small office and the payroll is done through a programme. The boss runs the payroll, but doesn't really understand tax etc, he literally just puts the figures in the programme and prints the payslips, so he can't answer my question.

Sorry if this seems stupid - we were just wondering as some of us will have a bit of overtime over Christmas which will get paid in New Year - but if we are going to get hit with higher PRSI for it we think we might choose to take time off in lieu.

many thanks everybody!

Itchianus

Hello Lady! wrote: »

Hi folks,

I get paid every fortnight on a Thursday for the preceeding two weeks (Thurs - Wed). So this year we will get paid on the 3rd of Jan for work carried out from 20 Dec 12 - 2nd Jan 13 - so all but 2 days of that pay period will be for work carried out in 2012.

Will we be on the new PRSI rates in that pay period for the whole payment? or will it just apply to the dates in 2013?

I work in a small office and the payroll is done through a programme. The boss runs the payroll, but doesn't really understand tax etc, he literally just puts the figures in the programme and prints the payslips, so he can't answer my question.

Sorry if this seems stupid - we were just wondering as some of us will have a bit of overtime over Christmas which will get paid in New Year - but if we are going to get hit with higher PRSI for it we think we might choose to take time off in lieu.

many thanks everybody!

You're thinking about the overtime thing the wrong way.

When you get paid on 3rd January you'll now pay PRSI on the first €254 of your wages, unless the gross fortnightly pay without overtime is less than 712.

So unless the overtime is going to push a person's gross pay over 712 for the fortnight the "extra PRSI" shouldn't affect their thinking any more than it does when there's been overtime up to now.

Hello Lady!

yes, my pay for the fortnight will be over €712, and it isn't normally. I usually work part time, but for the week before Christmas I will be working fulltime, plus extra hours, plus I'll get paid for the 2 bank holidays. So with this my wages will be about €1250 gross.

So my original question still stands - will my first pay packet in 2013 be at the new rates, eventhough it will mostly be payment for work done in 2012?

Itchianus

Hello Lady! wrote: »

yes, my pay for the fortnight will be over €712, and it isn't normally. I usually work part time, but for the week before Christmas I will be working fulltime, plus extra hours, plus I'll get paid for the 2 bank holidays. So with this my wages will be about €1250 gross.

So my original question still stands - will my first pay packet in 2013 be at the new rates, eventhough it will mostly be payment for work done in 2012?

Sorry, I should have made it clear, yes is the answer to your question.

Anyone who would turn down that much extra work/pay in order to avoid paying €10.16 in PRSI obviously doesn't need the work and should let someone who needs the money get the hours..!

Hello Lady!

well I was going to say thanks when I read your first line, but when I read the second I reconsidered.

Careful you don't fall off that pompus high horse of yours.

Actually, these two weeks are the only two weeks when I will get a decent wages. I normally only get about 15 hours, so usually my wages are usually less than €375 gross. Hence my ignorance when it comes to PRSI as this is not a situation that I have ever been in before.

You don't know me, or my circumstances. For all you know that €10.16 could mean the difference between paying a bill outright or being in arrears. How dare you judge my need or want for work?? What an ignorant and snide thing to say.

Itchianus

Hello Lady! wrote: »

well I was going to say thanks when I read your first line, but when I read the second I reconsidered.

Careful you don't fall off that pompus high horse of yours.

Actually, these two weeks are the only two weeks when I will get a decent wages. I normally only get about 15 hours, so usually my wages are usually less than €375 gross. Hence my ignorance when it comes to PRSI as this is not a situation that I have ever been in before.

You don't know me, or my circumstances. For all you know that €10.16 could mean the difference between paying a bill outright or being in arrears. How dare you judge my need or want for work?? What an ignorant and snide thing to say.

Apologies for any offence caused!

But what I've said is basic common sense - if you were stuck for money you wouldn't be wondering whether or not to take the work or not; at the end of the day it is extra cash, albeit that you might get less per hour into your hand...

Which is why my partner has just left the house after working her 9.00 - 5.00 already today, to drive the 10miles back into work to do 1.5hours of extra work. Take the cost of petrol out of it and she's effectively given her whole night up for less than €15. BUT WE NEED THE MONEY! And if you don't want those hours the week leading up to Christmas, she'd take your arm off for them...

Hello Lady!

Fair enough, apology accepted. I am in the same situation as your wife. We are saving like crazy people at the moment, and literally every €1 is of huge benefit to us. If you read my original post, at no time did I say I would refuse the work, it was just suggested to me by one of the other workers that it might be more benefit to me to take some of the extra time as time in lieu instead of paid overtime (its about 10 hours overtime in total at double rate).

Because of what I usually earn, I don't pay PRSI. But with the extra hours, it will cost me (I have been told) about €50. As I say, I'm a bit clueless about PRSI etc cos I don't normally pay it...so when a co-worker said 'with the new budget rules' I might be better off taking a few of the hours as time in lieu I thought I might ask on here what the story would be.

Thanks for your advice anyway.

Shane732

Hello Lady! wrote: »

well I was going to say thanks when I read your first line, but when I read the second I reconsidered.

Careful you don't fall off that pompus high horse of yours.

Actually, these two weeks are the only two weeks when I will get a decent wages. I normally only get about 15 hours, so usually my wages are usually less than €375 gross. Hence my ignorance when it comes to PRSI as this is not a situation that I have ever been in before.

You don't know me, or my circumstances. For all you know that €10.16 could mean the difference between paying a bill outright or being in arrears. How dare you judge my need or want for work?? What an ignorant and snide thing to say.

You have received an infraction for this post.

Attack the post, not the poster.

I'm slightly bewildered by your post in any event.

You say that €10.16 could potentially be the difference between paying a bill outright or going into arrears. Am I correct in saying that normally you wouldn't pay the €10.16 per fortnight as your wages are under €712?

Compare this to the position you have now where you are going to be paying the additional €10.16. Your only paying the €10.16 because you're earning more. Therefore, is your example of the €10.16 not completely incorrect? The net position is that you earn more money as a result of doing the extra hours, therefore in your example you would have over the €10.16 required to pay the bill up front.