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

A few quick PAYE tax questions

  • 29-07-2014 10:18pm
    #1
    Helpneeded86
    Registered Users, Registered Users 2 Posts: 523 ✭✭✭


    I have just received my first wage slip and I am curious about certain aspects.

    1 - USC - I see 3 bands. Is it a case of if my earnings are over 16k that I pay 7% or that I pay 2% on the first XXXXX and 4% on the next XXXXX and the 7% there after?

    I assume from my wage slip that I pay 7% on everything from 0 up. I have a medical card so I assume once I sort it with the tax office I will be taxed at 4%.

    2 - PRSI - I am in the 4% band but my salary due to been out of work will fall below the threshold if you take the yearly figure in to account. Will I get a refund in January?

    3 - I assume due to the fact I will earn low 5 figures that I wont pay any tax? When I enter my total wage in the a tax calculator it says I pay no PAYE?


Comments

  • #2
    rahmalec
    Registered Users, Registered Users 2 Posts: 193 ✭✭rahmalec


    Helpneeded86 wrote: »
    I have just received my first wage slip and I am curious about certain aspects.

    1 - USC - I see 3 bands. Is it a case of if my earnings are over 16k that I pay 7% or that I pay 2% on the first XXXXX and 4% on the next XXXXX and the 7% there after?

    I assume from my wage slip that I pay 7% on everything from 0 up. I have a medical card so I assume once I sort it with the tax office I will be taxed at 4%.

    2 - PRSI - I am in the 4% band but my salary due to been out of work will fall below the threshold if you take the yearly figure in to account. Will I get a refund in January?

    3 - I assume due to the fact I will earn low 5 figures that I wont pay any tax? When I enter my total wage in the a tax calculator it says I pay no PAYE?

    1: If you earn, say 17k, you will pay 2% USC on first 10k approx, 4% on the next 5k or so and 7% on what's left.

    2: I know prsi is done weekly but not sure if you can get a refund if for example you earn under the weekly thresholdX52? Maybe someone could answer this as itd be interesting for me too.

    3: for low incomes, if 20% of your income < your credits, then no income tax. :-)


  • #3
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    1. You are on some form of emergency tax at the moment which means 7% emergency tax till you are sorted usually it will be first xxx at 2% rest ar 4% since you have a medical card.

    2. Prsi isnt cumulative, no refund at the end of the year

    3. Your tax credits are probably 3300 which allows you to earn up to 16500 without paying paye.


  • #4
    Helpneeded86
    Registered Users, Registered Users 2 Posts: 523 ✭✭✭Helpneeded86


    CIARAN_BOYLE wrote: »
    1. You are on some form of emergency tax at the moment which means 7% emergency tax till you are sorted usually it will be first xxx at 2% rest ar 4% since you have a medical card.

    2. Prsi isnt cumulative, no refund at the end of the year

    3. Your tax credits are probably 3300 which allows you to earn up to 16500 without paying paye.

    Ah ok that answers a lot of them. I wont earn 16,500 this year but my salary is over that if I had worked a full year. I assume I will be taxed normally and get a refund in January is it?


  • #5
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Helpneeded86 wrote: »
    Ah ok that answers a lot of them. I wont earn 16,500 this year but my salary is over that if I had worked a full year. I assume I will be taxed normally and get a refund in January is it?

    No. When revenue processes your tax credits you will be taxed at zero from then on. However until then you will be taxed at 20% -1/52 (1650) or after a long enough time at 41%. Once your tax credits come through you will get a refund through your salary.


Advertisement