Payslip Error?

JaMarcusHustle

Hi all,

Very quick query – obviously with last year’s budget, the lower cut off point for PAYE was raised from €32,800 to €33,800 (or the monthly equivalent being a raise from €2,733.33 to €2,816.67).

I joined my current company on the 30th June 2014. Pay day is usually the end of the month, so it was a good time to start as it meant I got paid on 31st July and that covered July’s work. So basically, every payday corresponded to the previous calendar month’s work (i.e. August 31st payday covered August work, September 30th payday covered September work etc.)

Our payday for this year has moved to the 25th of each month, or in January’s case, the 23rd (as the 25th was a Sunday). The new 40% higher rate and the USC changes from the budget are all visible on my payslip, but the standard rate cut off is still €2,733.33, equating to the old annual rate of €32,800.

Am I right in saying that my January 23rd payslip should not have a standard rate cutoff of €2,733.33 / €32,800 annually and that it should be €2,816.67 / €33,800 instead? Or have I missed something? I am a single earner btw.

Thanks!

seamus

It's typical for a company to apply an employee's previous tax situation until Revenue issues that employee's certificate of tax credits for the new year. That may be the case here.

Once your employer has received your tax credits for this year, you will retrospectively receive back any overpaid tax for this year through your payslip.

skerry

I've had the same thing happen to me this month. Read all that waffle coming from Enda Kenny on how appprently people were ringing him up to say thanks for all the extra money they were noticing in their January payslip as a result of the super duper budget last year. People wondering was there some sort of mistake that they were getting extra money (something he later said never happened and was just figure of speech).

Anyway, I too was expecting to see some meagre increase due to the standard cut off changes and the changes to USC. Turns out I'm down to the tune of nearly 100 euro compared to Decembers payslip. PAYE is gone down marginally but USC is increased by about 90 euro this month, however that happened.

Absolutely sick to the teeth of having to ring Revenue about issues with tax. Was supposed to be getting tax credits applied as part of Revenue Job Assist scheme last 2 years and of course they forgot to apply that both this year and last and had to jump through all sort of hoops to get it sorted, rang at least 5 times each occurence to get it sorted and about 15-20mins on hold each time.

Was taxed an extra 500 euro as a result of an error with my P45 from my previous employer and still can't get a straight answer to whether that was sorted or not since.

Haven't received P60 yet so gonna do a P21 balancing statement once that comes through and hopefully that will be the end of it, at least for the moment.

Is it standard enough so for employers to apply Decembers tax to January payslips until they hear otherwise from Revenue?

thesimpsons

employers must use the most up to date info they have received from revenue when processing the payroll. If revenue is late issuing the statement of tax credits and cuts, then an employer cannot just use whatever the budget says as tax is very individual to each person. ie - two single people on sale salary might have different tax credits due to a number of things (medical card, owe back tax, splitting allowances between jobs or spouse, etc). An employer cannot just guess that an employee is on the standard rates. however, I'm surprised that employers wouldn't have received the correct info by now. I received our company up to date for 2015 rates before christmas.

skerry

thesimpsons wrote: »

employers must use the most up to date info they have received from revenue when processing the payroll. If revenue is late issuing the statement of tax credits and cuts, then an employer cannot just use whatever the budget says as tax is very individual to each person. ie - two single people on sale salary might have different tax credits due to a number of things (medical card, owe back tax, splitting allowances between jobs or spouse, etc). An employer cannot just guess that an employee is on the standard rates. however, I'm surprised that employers wouldn't have received the correct info by now. I received our company up to date for 2015 rates before christmas.

I know they are not going to just adjust pay based on what a budget say. I'm going to check with Payroll on Monday to see if they have received the latest info from Revenue. I'm guessing not, because I can't figure out why else I'm paying more USC than last year. Does seem a tad late to not have the correct info though.

thesimpsons

you mentioned a problem with previous P45 not yet resolved - I wonder have Revenue split your USC rates between two jobs in error. possible reason for USC increase. alternatively, you might have a USC shortfall to repay. best to ring them anyway.

skerry

thesimpsons wrote: »

you mentioned a problem with previous P45 not yet resolved - I wonder have Revenue split your USC rates between two jobs in error. possible reason for USC increase. alternatively, you might have a USC shortfall to repay. best to ring them anyway.

Problem with P45 was that I was on a external contract role and have since been made permanent with the same company. The contract company usually pay out any holidays owed in final payslip, but I asked could they let me carry the holidays over to my new permanent role which they agreed to at last minute. They managed to sort out carrying over holidays but had already submitted a P45 stating I was paid for the holidays and then had to resubmit the P45 minus the holiday pay.

Revenue were working on a P45 stating I was paid €1000 in holidays I never received and I had to call them several times over the course of a few months before they finally processed the correct P45. Have yet to see a refund of the money I was overtaxed though and can't get much information out of Payroll on the matter either.

Have printed out payslips for December and January so will try make sense out of USC thing over the weekend and if I can't get my head around it I'll give Revenue a bell on Monday.

skerry

P60 arrived today so will get P21 balancing statement done online over the weekend.

Quick question, I've had two employers this year, one from January to June and the other from July to year end. My P60 in Section (A, part 3) is says 'Pay in resepect of this period of employment' and underneath is says Use this figure in PAYE Anytime. In the Tax section (B) it says the same. Above these figures is total pay and tax in respect of my previous employment (i.e my job from Jan - June 2014).

I presume I add the Pay from previous employer and pay from current employer for the year and submit total in Paye Anytime (and same for Tax)? Apologies if this is a stupid question but have never done balancing statement and want o make sure I get it right.

2ndcoming

The pay from the previous employer will already be on file because they would have submitted the P45 to Revenue when you left, that's why it says "use this figure in PAYE Anytime" on the P60, to stop you inputting the same pay twice.

skerry

2ndcoming wrote: »

The pay from the previous employer will already be on file because they would have submitted the P45 to Revenue when you left, that's why it says "use this figure in PAYE Anytime" on the P60, to stop you inputting the same pay twice.

Ah yes, that's ringing a bell for me. Don't have my Paye anytime password to login here at work but I think the figure for the previous employer was already uploaded now that you mention it.

Now to figure out how to claim back my medical expenses through Paye Anytime. I could be back

JaMarcusHustle

seamus wrote: »

It's typical for a company to apply an employee's previous tax situation until Revenue issues that employee's certificate of tax credits for the new year. That may be the case here.

Once your employer has received your tax credits for this year, you will retrospectively receive back any overpaid tax for this year through your payslip.

This was exactly what was wrong. Have requested my new P2C which will have it sorted for next month. Thanks seamus, and anyone else for advice.