Quick tax question

NoQuarter

Hi guys,

What is the net amount one would get if they were to earn €2200 a month for only 2 months. It is an internship and so there is only 2 months work, I assume I am still in the first tax bracket. Is USC still paid on this? I assume it is. Could anyone do a quick calculation for a tax luddite!

Thanks.

namenotavailablE

It will depend on your specific circumstances but there are many free calculators out there

Try my Excel 2007 spreadsheet- see my signature below (when you're logged in) or the About me section of 'My profile' for the address to download it from (the moderator doesn't like direct links to such calculators in the text of a reply)

NoQuarter

namenotavailabl wrote: »

It will depend on your specific circumstnaces but there are many free calculators out there

Try my Excel 2007 spreadsheet- see my signature below (when you're logged in) or the About me section of 'My profile' for the address to download it from (the moderator doesn't like direct links to such calculators in the text of a reply)

Thanks namenotavailable,

It probably says a lot more about the state of my old laptop than your file but it put my computer into meltdown mode,which isnt difficult I'm afraid to say!

I had it in my head to say that I am a single adult with no dependents so it will be the most straightforward calculation. My tax credits are the standard for a single adult.

I'm just not sure how it is calculated considering the 2200 is for 2 months only. So is it just 2200 at the standard tax rate and apply the normal USC? I'm terrible at tax! I'd just like to know the net pay from 2200!

namenotavailablE

OK- assuming that you haven't worked this year at all (no P45 to hand in or no second job since January) and that you're starting in either July or August earning €2200 for that month and the next as a private sector employee with no deductions other than taxes & compulsory levies I calculate as follows:

Gross per month: 2200
PAYE per month: Nil
PRSI per month: 88
USC per month: Nil
Net per month: 2112

Best of luck with the position- hope it leads to something positive down the road

NoQuarter

namenotavailabl wrote: »

OK- assuming that you haven't worked this year at all (no P45 to hand in or no second job since January) and that you're starting in either July or August earning €2200 for that month and the next as a private sector employee with no deductions other than taxes & compulsory levies I calculate as follows:

Gross per month: 2200
PAYE per month: Nil
PRSI per month: 88
USC per month: Nil
Net per month: 2112

Best of luck with the position- hope it leads to something positive down the road

So do I, I have my fingers crossed I will be kept on!

Thanks a million for the calculations.

Can you tell me at what point would PAYE and USC kick in if I was to go full time after the 2 months?

namenotavailablE

Again, it depends on which month you started working.

PAYE won't be an issue if you started in either July or August.
€239 USC will be deducted in December (if you start in August).

If you started in July, there'll be a deduction of €185 in October going back to €72 in both November and December. The reason for the big October deduction is that by that stage you'll have come within the USC net- the €10036 exemption is spread out over the year. By October, it means that if you earned over €8363 [ie €10036 x 10/12] then you are liable on all income. Since you'll have earned €8800 by that stage (4 x €2200) you get a nasty shock in October but it eases then in November and December.

NoQuarter

Thanks a million for the explanation, its starting to sink in.

Just one final question if you dont mind.

If, for example, you started a job in january and your salary was 120k for ease sake. Are you taxed at 20% for the first 3 months or so until you have earned the higher tax bracket and then all of a sudden you go into the higher 41% bracket from April or so onward and from that time your tax is doubled or is your salary considered first and so each month you get 20% of the first 32k approx and the 41% on the rest spread evenly across 12 months?

srsly78

If you start in january everything is normalised (spread out) so your paycheck should be the same every month. When the system is operated correctly there should be no "jumps" in the tax you pay.