calculating a net wage

digzy

part time employee, whose hours vary each week.
accountant has payroll software and calculated the net pay from the gross
(employee earns 12 p/hour) as follows


24 hours € 285.42
25 hours € 297.12
28 hours € 328.48
29 hours € 337.78
32 hours € 356.99
33 hours € 363.81

Employee is convinced it's incorrect!

Just wondering if the net figures above look right?

gerrybbadd

digzy wrote: »

part time employee, whose hours vary each week.
accountant has payroll software and calculated the net pay from the gross
(employee earns 12 p/hour) as follows


24 hours € 285.42
25 hours € 297.12
28 hours € 328.48
29 hours € 337.78
32 hours € 356.99
33 hours € 363.81

Employee is convinced it's incorrect!

Just wondering if the net figures above look right?

Its impossible to tell without knowing the gross and the tax credits used

dil999

digzy wrote: »

part time employee, whose hours vary each week.
accountant has payroll software and calculated the net pay from the gross
(employee earns 12 p/hour) as follows


24 hours € 285.42
25 hours € 297.12
28 hours € 328.48
29 hours € 337.78
32 hours € 356.99
33 hours € 363.81

Employee is convinced it's incorrect!

Just wondering if the net figures above look right?

They look right. You should have a payslip for your employee for each week, and it should show Gross, Paye, USC and ee PRSI. Once you go above somewhere around 360 per week, PAYE kicks in, hence his net decreases. Your accountant should be able to explain it in detail.

namenotavailablE

The net figures for 24 hours, 25 hours, 32 hours and 33 hours tally with my calculations (assuming a single person with standard tax details).
I'd have said that the 28 hours and 29 hours calculated values should be higher- €332.22 and €343.37 as per following:



No idea why there should be a discrepancy in those 2 periods but worth checking. As per above, a detailed payslip will help clarify things.

allthedoyles

namenotavailabl wrote: »

The net figures for 24 hours, 25 hours, 32 hours and 33 hours tally with my calculations (assuming a single person with standard tax details).
I'd have said that the 28 hours and 29 hours calculated values should be higher- €332.22 and €343.37 as per following:



No idea why there should be a discrepancy in those 2 periods but worth checking. As per above, a detailed payslip will help clarify things.

I think he would pay a few euro paye on €336

toadfly

The figures on the OP are correct per my cals taking them as 63.46 weekly credit and on a week 1 basis;


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namenotavailablE

If week 1 basis then yes- the calculations would hold. I was assuming that the 'normal' cumulative basis was applying.

If a cumulative basis, the week 3 should be as follows (assuming €33800 SRCOP per year and €3300 credits per year):

Aggregate YTD earnings: €924
Aggregate SRCOP: €33800 *3/52 = €1950
So all aggregate income is taxed at 20% = €924 * 20% = 184.80
Deduct 3 weeks tax credits => 3 * (€3300/52) = €190

So no PAYE payable if cumulative basis in week 3 as credits exceed gross liability.

For week 4, it would be as follows:

Aggregate YTD earnings: €1272
Aggregate SRCOP: €33800 *4/52 = €2600
So all aggregate income is taxed at 20% = €1272 * 20% = 254.40
Deduct 4 weeks tax credits => 4 * (€3300/52) = €253.85

Therefore PAYE in week 4 = 254.40-253.85= €0.55

The employee would need to know if s/he is being taxed on a cumulative basis or a week 1 basis and -if possible although it might be too late at this stage of the year- switch to the cumulative basis.