Trying to make sense of taxes on payslip/new job

boobycharlton

Hi started a new job few weeks in public sector. Pay is 438 a week. Had to work week in arrears so got paid two weeks on Thursday. I added new job to my revenue account before I started and the tax setup on my payslip seems correct (PRSI class A1)

Just want to double check everything is correct as tax always confuses me.

For the two weeks I earned €876.92 and was taxed €309.78 so net was only €567. I can see my next weeks payslip in my online payroll profile and even though I'm only supposed to be paid €438, it says my net is €649.55 with deductions of €211.13. Very confusing so hoping someone here will be able to shed some light.

Cheers

Calahonda52

Its impossible to answer exactly without knowing you tax credits so lets take a simple example
438 per week by 52 is 22,776 per annum
Assume tax credits of 1,650 plus 1,650 or 3,300
http://www.revenue.ie/en/tax/it/leaflets/it1.html#section1

Tax on 22,776 at 20% is 4,555, less 3,300 = 1,255 which is your annual tax bill or 24 a week
so 22,776 minus 1,255 is 21,520 = 414 per week before USC
so three weeks will be 1,242 : you are projected to get [567 + 649] = 1,216

so my guess is the difference is the USC:
12,012 at 0.5% = 60
6,700 at 2.5% = 167
4,064 at 5% = 203

so about 8 euro a week or 24 for 3 weeks so 1,242 less 24 is 1,218 which is closer to the projected of 1,216
http://www.revenue.ie/en/tax/usc/index.html

boobycharlton

Calahonda52 wrote: »

Its impossible to answer without knowing you tax credits so lets take a simple example
438 by 52 is 22,776 per annum
Assume tax credits of 1,650 plus 1,650 or 3,300
http://www.revenue.ie/en/tax/it/leaflets/it1.html#section1

Tax on 22,776 at 20% is 4555, less 3,300 = 1,255 which is your tax bill
so 22,776 minus 1255 is 21,520 = 414 per week before USC
so three weeks will be 1,242 : you are projected to get [567 + 649] = 1,216

so my guess is the difference is the USC:
12,012 at 0.5% = 60
6,700 at 2.5% = 167
4,064 at 5% = 203

so about 8 euro a week or 24 fir 3 weeks so 1242 less 24 is 1218 which is closer to the projected of 1216
http://www.revenue.ie/en/tax/usc/index.html

Yeah that's my tax credit (3300) alright. Cheers, makes slightly more sense now!

Tis the USC bands that were confusing me.

The 2 weeks (876) slip says:

USC: 70.15
PAYE: 178.24
PRSI: 35.08
Pension Lump Sum: 26.31

Calahonda52

Public setor PRSI/USC/Pension deductions are beyond my skill level so can't help with that breakdown

Just Retired

Hi-There
What does Pension Lump Sum deduction mean?. Is this the Pension Contribution applicable to Public Sector Employees, applied soon after the financial crisis started. Is it taken from your net pay i.e.
after all other statuatory deductions are made?

Just Retired.

Ciaran

boobycharlton wrote: »

Yeah that's my tax credit (3300) alright. Cheers, makes slightly more sense now!

Tis the USC bands that were confusing me.

The 2 weeks (876) slip says:

USC: 70.15
PAYE: 178.24
PRSI: 35.08
Pension Lump Sum: 26.31

You were emergency taxed for the first two weeks and got the excess tax refunded to you in the third week. Your week-4 payslip will be pretty close to the normal amount.

The pension lump sum is a flat rate of 3% of your gross pay.