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Salary Forego for Share Purchase and Tax Implication

GeneralDisorder · 2015-12-17 16:11:47

Evening, I changed jobs recently and I am no eligible to take part in a Salary Forego scheme for Share Purchase within the company, I wanted to try and understand the tax implications of the purchase on my Net Salary per month? Basically, the max % of salary we can forego is 7.5% of the total salary, and this is prorated…

17-12-2015 4:11pm

#1
GeneralDisorder

Registered Users, Registered Users 2 Posts: 46 ✭

Join Date: March 2010

Posts: 31
Evening,
I changed jobs recently and I am no eligible to take part in a Salary Forego scheme for Share Purchase within the company, I wanted to try and understand the tax implications of the purchase on my Net Salary per month?

Basically, the max % of salary we can forego is 7.5% of the total salary, and this is prorated over 12 months.

I understand the forego amount is taken from Gross Pay, but is subjected to PRSI and USC taxation, but the overall impact to my pay is unclear.

Assuming the monthly forego amount is €500, are the following assumptions correct:
€500 taken from Gross Pay

Taxable pay reduced by €500

PRSI and USC paid on the €500

Assuming no other taxes etc....

Are my assumptions correct?

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