Tax situation at work.

Stuckforcash

Hi,

I wonder if someone could shed some light on this. I started a job for 17 euro an hour. My boss is a bit messy but said something like you're really getting 20 an hour but 3 euro goes on tax, she'd also never heard of annual leave for bank holidays. Anyway my 17 euro is getting taxed quite a bit. Just wondering is this set up normal?

seamus

You'd really have to give more information in terms of how many hours you work, etc.

You should be receiving payslips, which will tell you how much you earned gross, and how much tax was paid.

If you're getting €20 an hour, doing a 40 hour week, then you should pay just over €3 an hour in tax. So her calculations sound about right, but will vary depending on how many hours you do, etc.

In terms of bank holidays, there is no entitlement to annual leave for those days. If that day is normal working day, but the business is closed, then you get paid for that day. If you are working on the day, then you get paid for that day, and at the employer's discretion that can pay you again for the bank holiday, or give you another day's annual leave in lieu.

Stuckforcash

I'm working on average 27 hours a week, it varies at bit but has never been above 30 hours. My gross pay on my payslip works out as 27x17 if you get me. Then I would get taxed about 25 euro on that. That's all fine.

I'm just wondering what she's on about when she says I'm technically on 20 an hour?

I don't work bank holidays or get paid for them.

Thanks for the reply.

greendom

Stuckforcash wrote: »

I'm working on average 27 hours a week, it varies at bit but has never been above 30 hours. My gross pay on my payslip works out as 27x17 if you get me. Then I would get taxed about 25 euro on that. That's all fine.

I'm just wondering what she's on about when she says I'm technically on 20 an hour?

I don't work bank holidays or get paid for them.

Thanks for the reply.

She may mean that with employer prsi the cost to the company would be 20e an hour.

Not quite the same but I can't think what else they could mean.

Stuckforcash

greendom wrote: »

She may mean that with employer prsi the cost to the company would be 20e an hour.

Not quite the same but I can't think what else they could mean.

Could she be taking 3 euro an hour to cover the employer prsi? I know we had one guy in to do a couple of hours one day and she gave him 20 per hour cash he told us. Anyway I guess it doesn't matter as I agreed to 17 per hour before talking the job, was just curious.

Thanks.

seamus

If your payslip says you're getting €17 gross, then you're getting €17 an hour for tax purposes. As greendom says, she may just be a bit of an eejit who claims that you're actually paid €20 an hour, when what she means is that you cost her €20 an hour. Which is not the same thing; you are paid €17 an hour.

I'd query the bank holiday thing. You're entitled to a paid day off for a bank holiday. The amount you get paid is basically the average of what you work. In your case you're entitled to be paid for 27/5 = 5.4 hours for any bank holiday.

The only stickler in your case is that you say you just started. If you've worked less than 40 hours in the previous 5 weeks (which doesn't sound likely in your case?), you're not entitled to be paid for for it.

Stuckforcash

I get you. Thanks. Yeah I think she just doesn't fully understand it or something.

I worked a month so definitely entitled to something for yesterday in that case. She just said well we were closed so why would you get paid.

Stuckforcash

Are like Xmas bank holidays where we are always closed included in this?

seamus

Yes. Any of the statutory public holidays are included in the requirement to be paid. Over Xmas, that's Xmas Day and St. Stephen's Day.

Where the business is closed over Xmas on days that are not public holidays, there's no specific entitlement to be paid, though it's typical for companies to assign these as annual leave days, meaning you get paid for them.

Stuckforcash

Turns out the longer term employees have never received any payment for bank holidays. Somehow no one was aware that this was even a thing. What a mess.