Maternity Leave/Tax Query

Dubliner28

Hi all

I'm wondering if anyone can shed some light on below.

My wife is on maternity leave(2nd child) with full pay from employer.
She just received her first pay slip since going on maternity leave and has been taxed over €1000.
(a third of her wages)

Is this correct? Are tax credits involved?

She is going to ring to call revenue tomorrow anyway but just wondering if anyone has knowledge or experience of this in the past to put her at ease for now.

Thanks a mill

huskerdu

How does the payslip differ from last months?

Have you compared the gross pay, the tax credits etc ?

salmocab

My wife is down about 100 a week her maternity benefit go to her employer and they pay her normal amount but taxed more as as far as I understand the benefit counts toward income even though she doesn’t see it

Dubliner28

[quot7e="huskerdu;107067314"]How does the payslip differ from last months?

Have you compared the gross pay, the tax credits etc ?[/quote]

She's down a third of her wage. (Correction on op she's down 1000 euro approx

Gross pay is the same however tax credits have decreased over €200.

I wouldn't have taught her tax credits would change if she's on maternity leave?

namenotavailablE

It's possible that the payroll department of her employer didn't process it correctly- see this page (specifically, example 1 although the other examples may be also relevant) for how it is taxed.

Her tax credits and standard rate band will be reduced - this is to collect the PAYE on the amount of Maternity Benefit paid by the DEASP. USC or PRSI is NOT charged on Maternity Benefit.

Essentially, her employer should only be charging her PAYE on the extra amount over the Maternity Benefit payment.