PAYE not there before, there now.

Old Perry

As per title, I have tried reading to find out but I cant make out what its about at all. My other payslips PAYE is nil and in the last two (starting this year) I have paid paye. paye, usc, prsi ee and prsi er are the payments made on my slip. what do these mean.

Would appreciate if someone can tell, in simplest terms, why this might be.

barneystinson

Old Perry wrote: »

As per title, I have tried reading to find out but I cant make out what its about at all. My other payslips PAYE is nil and in the last two (starting this year) I have paid paye.
Would appreciate if someone can tell, in simplest terms, why this might be.

In simplest possible terms - New tax year.

relax carry on

Old Perry wrote: »

As per title, I have tried reading to find out but I cant make out what its about at all. My other payslips PAYE is nil and in the last two (starting this year) I have paid paye. paye, usc, prsi ee and prsi er are the payments made on my slip. what do these mean.

Would appreciate if someone can tell, in simplest terms, why this might be.

The tax year runs January to December. I'm assuming that you only started working in your present job sometime last year, so you may have had a build up of unused credits and rate band which mean you paid little to no tax.
We are now in a new Tax year and you are being taxed on a normal cumulative basis meaning that, this should be the normal amount of tax you pay based on you earnings.

Do you understand your payslip at all or the the PAYE system in general?

Old Perry

relax carry on wrote: »

The tax year runs January to December. I'm assuming that you only started working in your present job sometime last year, so you may have had a build up of unused credits and rate band which mean you paid little to no tax.
We are now in a new Tax year and you are being taxed on a normal cumulative basis meaning that, this should be the normal amount of tax you pay based on you earnings.

Do you understand your payslip at all or the the PAYE system in general?

Thanks. No not really is the quick answer to ur question. Youre correct im only in the job a few months. So can i expect this to continue for the year or what?

Mongfinder General

Old Perry wrote: »

Thanks. No not really is the quick answer to ur question. Youre correct im only in the job a few months. So can i expect this to continue for the year or what?

How much do you earn per week?

Old Perry

Mongfinder General wrote: »

How much do you earn per week?

Id prefer not to say. Not huge money anyways. So this is the norm from here on out?

endacl

Old Perry wrote: »

Id prefer not to say. Not huge money anyways. So this is the norm from here on out?

Yep. Same as for the rest of us.

CIARAN_BOYLE

Old Perry wrote: »

Id prefer not to say. Not huge money anyways. So this is the norm from here on out?

Then you would prefer not to get answers. You probably will be stopped PAYE for the rest of the year if your salary remains similar but I can't tell you that. Maybe there is a mistake somewhere. Maybe you are paying too much tax or maybe too little but I can't tell because you want to keep your information private.

That's OK but I can't tell you any news.

I would imagine that you will be stopped PAYE from here on.

alroley

Old Perry wrote: »

As per title, I have tried reading to find out but I cant make out what its about at all. My other payslips PAYE is nil and in the last two (starting this year) I have paid paye. paye, usc, prsi ee and prsi er are the payments made on my slip. what do these mean.

Would appreciate if someone can tell, in simplest terms, why this might be.

As above, new tax year so you don't have any unused tax credits like last year.

PAYE is tax.
USC is universal social charge. If you earn under 13,000 per year you don't pay this.
PRSI EE is what you pay. PRSI ER is what your employer pays - this one is not actually being taken out of your pay.

Old Perry

Thanks people. Im on a salary. Pay remains same every two weeks unless i do overtime or bank holidays.

Mongfinder General

Old Perry wrote: »

Id prefer not to say. Not huge money anyways. So this is the norm from here on out?

Can't answer that without knowing how much you earn. Sounds like you're going to get rode up the he by the rest of us.

Old Perry

CIARAN_BOYLE wrote: »

I would imagine that you will be stopped PAYE from here on.

Where could I find out about whether this is true or not.

Regardless of my own pay, what would the difference be between someone earning 600 a week or 1000 per week? difference in how much they pay and/or how long they pay it for?
is this the difference in cumulative and non cumulative?

mel.b

Old Perry wrote: »

Where could I find out about whether this is true or not.

Regardless of my own pay, what would the difference be between someone earning 600 a week or 1000 per week? difference in how much they pay and/or how long they pay it for?

The website taxcalc.ie is very good for breakng down how much of the various taxes and charges you pay for the year. It is also the only one that i know of that includes the pension levy for public sector workers.

As for how long you pay it for...as long as you are working and over the threshold you pay it, so basically until you retire

cloloco

Old Perry wrote: »

CIARAN_BOYLE wrote: »

I would imagine that you will be stopped PAYE from here on.

Where could I find out about whether this is true or not.

Regardless of my own pay, what would the difference be between someone earning 600 a week or 1000 per week? difference in how much they pay and/or how long they pay it for?

Its called income tax, get used to it

Loads of info here: http://www.revenue.ie/en/tax/it/leaflets/it11.html

In simple terms - if your tax liability is more than your tax credits then you will pay it.

Stheno

Old Perry wrote: »

Where could I find out about whether this is true or not.

Regardless of my own pay, what would the difference be between someone earning 600 a week or 1000 per week? difference in how much they pay and/or how long they pay it for?
is this the difference in cumulative and non cumulative?

Google tax calculator ireland

Put in your yearly salary and see does it match your current payslip

Someone earning 600 a week pays a lot less tax than someone on 1000 a week

mel.b

From taxcalc.ie, assuming single, not married.

€600/week before tax = €31200 per yr,
-Private sector: take home pay €26162
- Public Servant: take home pay €25024

€1000/ week before tax = €52000
- private sector: take home €37290
- Public servant: take home € 34377

relax carry on

Tax calculators are fine but it's no harm to try and understand the tax system and what you pay tax on. You might also want to have a look at any additional reliefs you might be entitled to claim. Register for Revenue's online services and get familiar with it if you are planning on working and earning in this country.

http://www.revenue.ie/en/tax/it/leaflets/it11.html

Old Perry

Right, thanks for the info, I understand I have to pay income tax, thanks for pointing that out, this is obvious. what I don't understand is why that was not paid last year due to built up credits. Will these credits build up again to the point where paye will be nil or what.

user Ciaran boyle "I would imagine that you will be stopped PAYE from here on. "

alroley

Old Perry wrote: »

Right, thanks for the info, I understand I have to pay income tax, thanks for pointing that out, this is obvious. what I don't understand is why that was not paid last year due to built up credits. Will these credits build up again to the point where paye will be nil or what.

user Ciaran boyle "I would imagine that you will be stopped PAYE from here on. "

No, you're using them now every week. You weren't working for some of last year so they got built up. They don't build up if you're working.

For example, I worked last year from January - July. I didn't work for August - November, then when I came back in December I got a big tax refund because I had a few months where I didn't use my tax credits.

Stheno

Old Perry wrote: »

Right, thanks for the info, I understand I have to pay income tax, thanks for pointing that out, this is obvious. what I don't understand is why that was not paid last year due to built up credits. Will these credits build up again to the point where paye will be nil or what.

user Ciaran boyle "I would imagine that you will be stopped PAYE from here on. "

No. You get credits every week so ots like saving. If you dont work those savings go in the bank against earnings for that tax year so you pay less tax.

When a new tax year starts youve no savings so you have to pay tax usc etc

You will pay every week you work

Old Perry

alroley wrote: »

No, you're using them now every week. You weren't working for some of last year so they got built up. They don't build up if you're working.

For example, I worked last year from January - July. I didn't work for August - November, then when I came back in December I got a big tax refund because I had a few months where I didn't use my tax credits.

Thanks, I had it in my head that credits build up while you were employed to be used when unemployed to pay for jsa. okay this clears things up a bit more. I need to read the links provided now.

thanks again for those who provided information.

relax carry on

Old Perry wrote: »

Right, thanks for the info, I understand I have to pay income tax, thanks for pointing that out, this is obvious. what I don't understand is why that was not paid last year due to built up credits. Will these credits build up again to the point where paye will be nil or what.

user Ciaran boyle "I would imagine that you will be stopped PAYE from here on. "

No.

Tax credits are one part of the PAYE system. The second part is your rate band.

A single persons rate band is 33800 for the year. This is the amount you can earn in the year taxed at the lower rate of 20%. Anything above this is taxed at the higher rate of 40%.

Say you earn 20000 in the year; since its below, the rate band level of 33800, it's all taxable at 20%. You would be due to pay 4000 on your 20000 however this is where the tax credits come in to play.

A single person has two standard credits which add up to 3300. This comes off the 4000 in the above scenario meaning you'd pay 700 in paye altogether for the year.

The above is based on a full 12 months. Divide everything by 12 for a monthly figures or 26 for bi weekly or 52 for weekly paid.

Stheno

Old Perry wrote: »

Thanks, I had it in my head that credits build up while you were employed to be used when unemployed to pay for jsa. okay this clears things up a bit more. I need to read the links provided now.

thanks again for those who provided information.

You pay three taxes.
Paye to help run the country
Prsi for social benefits
Usc supposed to be progressive

Once you earn about 19k a year you pay

gingerhousewife

Old Perry wrote: »

Right, thanks for the info, I understand I have to pay income tax, thanks for pointing that out, this is obvious. what I don't understand is why that was not paid last year due to built up credits. Will these credits build up again to the point where paye will be nil or what.

user Ciaran boyle "I would imagine that you will be stopped PAYE from here on. "

They "built up" last year as you were not working for part of the year.

Every fortnight when you get paid this year you will utilise 1/26 of your annual tax credits. If you earn the same every fortnight this year you should expect to have the same net pay every fortnight, for the full year.

I recommend looking up citizens advice webpage or somewhere else that explains the mechanics of the PAYE system in layman's terms, as you really should try to understand what is being deducted from your salary.

Old Perry

relax carry on wrote: »

No.

Tax credits are one part of the PAYE system. The second part is your rate band.

A single persons rate band is 33800 for the year. This is the amount you can earn in the year taxed at the lower rate of 20%. Anything above this is taxed at the higher rate of 40%.

Say you earn 20000 in the year; since its below, the rate band level of 33800, it's all taxable at 20%. You would be due to pay 4000 on your 20000 however this is where the tax credits come in to play.

A single person has two standard credits which add up to 3300. This comes off the 4000 in the above scenario meaning you'd pay 700 in paye altogether for the year.

The above is based on a full 12 months. Divide everything by 12 for a monthly figures or 26 for bi weekly or 52 for weekly paid.

That's great thanks.

Mrs OBumble

Old Perry wrote: »

Thanks, I had it in my head that credits build up while you were employed to be used when unemployed to pay for jsa. okay this clears things up a bit more. I need to read the links provided now.

thanks again for those who provided information.

No. Thats PRSI credits aka pension credits , more commonly called stamps.

The employee PRSI that you are deducted pays for them, but theyre quite different to income tax.