Taxsaver ticket on payslip?

ION08

Hi all,

I'm hoping somebody here could help clarify as it is my first time availing of this scheme through my employer.

I opted for a Monthly Dublin Bus Ticket (€123)

In "theory" I understand how it should work, however, I received my payslip today and it looks like the €123 was just deducted from my pay along with PAYE, PRSI and USC

I was expecting to see my gross salary on the left hand side minus €123 and then PAYE,PRSI,USC being deducted on the right hand side.

Obviously failing to see the benefit I emailed my Payroll dept who said it is deducted from Gross pay and as a result I am paying less PAYE in a nutshell.

Is this right? How do I know I'm actually paying less PAYE as a result of this ticket?

How does it appear your payslip?

Thanks for any clarification on this.

LXFlyer

You would have to do the calculations yourself or get HR to show you what it would have been.

The presentation is perfectly correct.

The cost of the taxsaver ticket is shown as a reduction of your gross pay, and consequently, your PAYE, PRSI and USC is based on the revised gross salary, and are all reduced as a result.

ION08

lxflyer wrote: »

You would have to do the calculations yourself or get HR to show you what it would have been.

The presentation is perfectly correct.

The cost of the taxsaver ticket is shown as a reduction of your gross pay, and consequently, your PAYE, PRSI and USC is based on the revised gross salary, and are all reduced as a result.

Thanks a lot for this. I guess I just wanted to make sure that the presentation is perfectly correct as you put it before breaking out the calculator!

Spanish Eyes

ION08 wrote: »

Thanks a lot for this. I guess I just wanted to make sure that the presentation is perfectly correct as you put it before breaking out the calculator!

Whatever about the presentation, the end result should be that the ticket cost is reduced by your taxation level.. I dont know what yours is.... So!

Anyhow, have a look at last months payslip. Look at your net pay. Now look at your net pay after ticket price deducted. The difference should be the net cost of your TAXSAVER ticket. (why does txsav always end up in caps!).

At least I think that's how it works!

My annual bus ticket worked out at around a tenner a week net. Fan bloody tastic IMV.

ION08

Ticket works out at €59.04 ... Nice!

Csalem

One of the people I work with got the taxsaver bus ticket at my prompting and as such they dropped a tax-band and saved a lot. I personally do not know how the financial element of it works but I do know I pay less tax and it is cheaper for me than the old monthly tickets I bought.

ION08

Csalem wrote: »

One of the people I work with got the taxsaver bus ticket at my prompting and as such they dropped a tax-band and saved a lot. I personally do not know how the financial element of it works but I do know I pay less tax and it is cheaper for me than the old monthly tickets I bought.

Makes no difference to my Tax band but still, I'm kicking myself for only availing of it now!

Oh, also according to my HR dept all travel tickets will be moving over to the Leap Card system in/before May 2014

pervertedcoffee

Hi guys,

Jumping in here as I have no idea how this works and even reading the above, I'm still mystified.

So is the main benefit of the taxsaver ticket that you pay less tax on your payslip and that's where the savings lie - it does not impact the cost of the actual ticket itself?

(I realise this probably is self evident to everyone else but I am very numerically challenged and I just don't get it at all)

Thanks in advance.

apeking

pervertedcoffee wrote: »

Hi guys,

Jumping in here as I have no idea how this works and even reading the above, I'm still mystified.

So is the main benefit of the taxsaver ticket that you pay less tax on your payslip and that's where the savings lie - it does not impact the cost of the actual ticket itself?

(I realise this probably is self evident to everyone else but I am very numerically challenged and I just don't get it at all)

Thanks in advance.

Yes the benefit is you pay less tax

Here is an example of how it works:

If your monthly gross pay is 2000 you pay tax on the 2000 @ say 41% (for simplicity) = tax of €820 net pay €1,180 (2,000-820)

If you have a tax saver ticket which costs 130 a month and your pay is 2000 you pay tax on €1,870 (2000 - 130) @ say 41% = tax of €766 net pay €1104 (2,000 - 766 - 130 for the ticket)

Diffrence in net pays:
€1180
€1104 with tax saver
€76

Cost of ticket was €130 but it is only really costing you €76.

LXFlyer

apeking wrote: »

Yes the benefit is you pay less tax

Here is an example of how it works:

If your monthly gross pay is 2000 you pay tax on the 2000 @ say 41% (for simplicity) = tax of €820 net pay €1,180 (2,000-820)

If you have a tax saver ticket which costs 130 a month and your pay is 2000 you pay tax on €1,870 (2000 - 130) @ say 41% = tax of €766 net pay €1104 (2,000 - 766 - 130 for the ticket)

Diffrence in net pays:
€1180
€1104 with tax saver
€76

Cost of ticket was €130 but it is only really costing you €76.

An excellent example!


Just to re-emphasise that you also save on your PRSI and USC charge as they are based on your reduced gross pay.

ION08

apeking wrote: »

Yes the benefit is you pay less tax

Here is an example of how it works:

If your monthly gross pay is 2000 you pay tax on the 2000 @ say 41% (for simplicity) = tax of €820 net pay €1,180 (2,000-820)

If you have a tax saver ticket which costs 130 a month and your pay is 2000 you pay tax on €1,870 (2000 - 130) @ say 41% = tax of €766 net pay €1104 (2,000 - 766 - 130 for the ticket)

Diffrence in net pays:
€1180
€1104 with tax saver
€76

Cost of ticket was €130 but it is only really costing you €76.

Great description of how it works, if only it were that clear from looking at it on your payslip

pervertedcoffee

Thank you so much apeking! I really wasn't getting it at all and am helping my boss introduce the scheme where I work. I really appreciate you taking the time to break it down for me.

Is it any wonder I scored in the lowest percentile for numerical literacy in my DATS :pac: