Holiday pay and tax.

Truckermal

Hi folks I'm owed 45 days holiday pay from my employer but I'm never going to use them all so I could draw down 20 days along with my wages but I will be fleeced on tax.

Is their any way of drawing them down without being ridden on USC etc etc.

EagererBeaver

What do you mean by fleeced? You'll pay tax and USC as normal.

If you mean can you get paid off without tax, prsi, USC etc, then no. Nor should you.

seamus

Your employer is not legally permitted to pay you in lieu of holidays unless you're quitting.

Cork2015!

you could ask your employer to pay some of it in a voucher. Each employee can get €500 per year tax free voucher for dunnes/tesco etc.
would depend on the employer though as they have no obligation to do it or pay out for the holidays

Mrs OBumble

seamus wrote: »

Your employer is not legally permitted to pay you in lieu of holidays unless you're quitting.

I believe they can pay out days in excess of the legal minimum annual leave. eg if an employee's contract says they get 25 days in a year, then up to 5 of them can be paid out in cash.

OP, if you do this, you'll be taxed as though you will earn that amount every month between now and the rest of the year. BUT at the next pay, the tax system will see if you paid too much last time, and if necessary give you some back. Or if it's December when you get the extra pay, you can ask Revenue for a balancing statement (and thus get any overpaid tax back) after you get your P60 for the year.

Truckermal

Mrs OBumble wrote: »

I believe they can pay out days in excess of the legal minimum annual leave. eg if an employee's contract says they get 25 days in a year, then up to 5 of them can be paid out in cash.

OP, if you do this, you'll be taxed as though you will earn that amount every month between now and the rest of the year. BUT at the next pay, the tax system will see if you paid too much last time, and if necessary give you some back. Or if it's December when you get the extra pay, you can ask Revenue for a balancing statement (and thus get any overpaid tax back) after you get your P60 for the year.

Cheers ended up taking 20 days this week..

Allinall

Mrs OBumble wrote: »

I believe they can pay out days in excess of the legal minimum annual leave. eg if an employee's contract says they get 25 days in a year, then up to 5 of them can be paid out in cash.

OP, if you do this, you'll be taxed as though you will earn that amount every month between now and the rest of the year. BUT at the next pay, the tax system will see if you paid too much last time, and if necessary give you some back. Or if it's December when you get the extra pay, you can ask Revenue for a balancing statement (and thus get any overpaid tax back) after you get your P60 for the year.

That's nonsense.

OP, assuming your tax basis is "cumulative", then your tax is worked out on your earnings for the year to date, then your tax paid up to the previous period is deducted to give you the tax figure for that period.

If you got paid an extra 20 days this week and are taxed on it, don't be expecting any refund either next week or after the year end.

pilly

Allinall wrote: »

That's nonsense.

OP, assuming your tax basis is "cumulative", then your tax is worked out on your earnings for the year to date, then your tax paid up to the previous period is deducted to give you the tax figure for that period.

If you got paid an extra 20 days this week and are taxed on it, don't be expecting any refund either next week or after the year end.

He would if he's a low paid worker. I've had guys on minimum wage getting paid commission once a month, paying a lot of tax on it and then getting some back the next couple of weeks. You'd have to be a low earner though.

Allinall

pilly wrote: »

He would if he's a low paid worker. I've had guys on minimum wage getting paid commission once a month, paying a lot of tax on it and then getting some back the next couple of weeks. You'd have to be a low earner though.

Possibly USC may be overpaid, but if they are on a cumulative basis for tax, then there should be no overpayment and subsequent rebate.

The tax credits are cumulative , so the correct Year To Date tax will always be the figure in any given pay period .