Salary and tax for new job

Barti

My partner started a new job two weeks ago and her payslip seems to be a little low to what I expected. She is on 26600, gets paid fortnightly, and first payslip came to around 500. She is listed as Week 1 tax, but that will get sorted once she gets sorted with Revenue and figures out what they need from her to go to cumulative based tax (first proper job, so she has to register so she can login on Revenue.ie).

I would have thought she would get closer to 7-800 take home. Am I wrong, or does it seem low? I tried the Deloitte calculator and it was stating around 880 take home (allowing for pension contributions of 2% matched). From what I can see on the payslip, she paid no tax, just USC and pension as deductions.

Is it just a problem with not being setup in revenue yet, or is it something she may need to query with the company? She is currently doing a 2 week training course, so my only thoughts on the low amount may be that they pay less when training or something.

thesimpsons

You mention the first payslip - is that 500euro before or after tax as should be 1,000e before tax based on fortnightly payments, but maybe she joined the payroll system half way through their fortnightly cut off and so only got paid for one week. As its her first job and not yet registered with revenue she should ideally be on emergency tax, not week 1 basis. Her best bet is to complete the Revenue registeration and get that sorted ASAP but in meantime, ask payroll office as they can tell her how they made the calculations. Any overpaid tax will be refunded - Revenue is probably one of the best govt bodies for getting things right imo

namenotavailablE

Assuming a private sector employment, typical tax credits (€3300 per year) and standard rate band (€34550 per year although she wouldn't need this full amount and you can consider transferring up to €9000 from her to you if you're jointly assessed and your income could use it), I'd calculate the following per 'regular fortnight' (i.e once the W1 basis is sorted out):



Source: My Excel calculator @ http://taxcalc.eu/monthlyss

Barti

It was 511 before deductions, and 498 after (only deductions were USC and the Pension Contribution) so no tax applied. Tax status is 'W' so I assume Week 1, but there was no tax deduction at all. She is currently going through registration with revenue as it is her first job so she never had to use the system before. They will post out the pin and stuff next week, so I guess she will sort that out then.

Maybe it is that they only paid the one week though, as her hours on it are 39 which is the typical week. Maybe it is just that she started halfway through the fortnight pay period. So in a couple weeks she may get the full amount. She has worked 2 weeks though, and was paid this week (today officially). So would that mean next pay day she may get 3 weeks worth and then go back to normal? Still odd about the tax though, would have thought they would just apply the emergency tax until the Revenue stuff was sorted.

namenotavailablE

If her pay before any deductions totalled €511 and she's being paid fortnightly then it seems that she was paid for a single week's work in this first period- an annual rate of €26600 is the same as €1023 per fortnight. Since €511 is half of that amount, I'd guess that she was paid just for 1 week's work.

Also, if she wasn't working yet in 2018, that means that she'll have some unused tax credits and standard rate band for the first couple of payments. As an example, if she started working around April 9th, she would have around €900 unused tax credits and €9300 unused standard rate band built up since January 1. These factors would keep her PAYE at Nil (or very low) for quite a while (assuming the W1 basis is sorted)- I'd guess through to the start of September.

Barti

Thanks, I think that pretty much explains it! We'll know next pay day for sure then.

Mrs OBumble

Barti wrote: »

). So would that mean next pay day she may get 3 weeks worth and then go back to normal? .

Sounds like they do "week in hand" - effectively payroll is a week behind and only pays out for completed weeks not almost-completed ones.

They'll square it up when she eventually leaves.

Emergency tax is a sliding scale: in the first couple of weeks its very low, it doesn't reach the painful level until the 9th week on it.