Got two weeks back pay - taxed to hilt

FGR

Hi all

I’m in the public service. Normally I’m paid weekly but due to issues with our payroll department I didn’t get paid for two weeks - with sincere apologies I got my normal weekly pay this week plus the two weeks back pay - but sadly it looks like most of it was eaten by tax. I thought they missed out on paying me for one of the weeks but the gross on the payslip is right !

Will this balance out during the year or will a p21 in 2019 fix the problem?

Edit: just after finding out revenue is after sending me a new tax credit cert changing me from from cumulative onto a week 1/month 1 basis. No doubt something to do with this issue.

Any way I can get it rectified ?

Thanks all for your help as always.

Turnipman

FGR wrote: »

Hi all

I’m in the public service. Normally I’m paid weekly but due to issues with our payroll department I didn’t get paid for two weeks - with sincere apologies I got my normal weekly pay this week plus the two weeks back pay - but sadly it looks like most of it was eaten by tax. I thought they missed out on paying me for one of the weeks but the gross on the payslip is right !

Will this balance out during the year or will a p21 in 2019 fix the problem?

Edit: just after finding out revenue is after sending me a new tax credit cert changing me from from cumulative onto a week 1/month 1 basis. No doubt something to do with this issue.

Any way I can get it rectified ?

Thanks all for your help as always.

Easiest way is simply to ring revenue and ask them to take you off the week 1 basis.

namenotavailablE

+1 to the above- if at all possible, get back on the 'cumulative basis' and this will allow a smoothing out to happen over the remainder of the year.

If that isn't possible for some reason, you'll have to wait until next year to recover any tax over-deducted.

FGR

Thank you all. I’ll give revenue a buzz ASAP.

Is this normal ? I’m just hoping I won’t be down €300+ altogether !

namenotavailablE

When you get a large amount added to your normal pay in a single pay period, you can potentially end up paying over-the-odds on PAYE and USC in that period. An additional disadvantage is that no 'cumulative refunds' are allowed when on a Week 1/ Month 1 basis so there's no smoothing out (i.e. bit-by-bit refunds of any excess deductions).
That's why getting back onto the 'cumulative basis' is desirable.

Typically, the Week 1/ Month 1 basis is applied if Revenue are missing some information about your tax status- a call should rectify the issue.

Tow

Is there more to the story? Why did Revenue but you on Week1? Were you on Maternity or Sick Pay?

richiepurgas

You were probably put on a week 1 basis while some issue needs to be resolved. Revenue will probably send you a tax form to be filled out or, if you don't get one in the next week or two, ring them and ask for one. When you go back to normal taxation arrangements, you should receive a refund of amount overpaid.

FGR

Tow wrote: »

Is there more to the story? Why did Revenue but you on Week1? Were you on Maternity or Sick Pay?

You've hit the nail on the head. I've been out sick for just shy of two months following an injury but was paid normally until that anomaly.

I phoned revenue. They issued the week 1 because of the way Illness Benefit is now paid to employers. My employer receives the IB directly and pays it to me with the difference. They recommend that I don't switch back to cumulative and seek a P21 in the new year.

I should be back at work in the next week or two - would this be the best approach to stay at week 1 until the new year or go back on cumulative as soon as I'm back?

namenotavailabl wrote: »

An additional disadvantage is that no 'cumulative refunds' are allowed when on a Week 1/ Month 1 basis so there's no smoothing out (i.e. bit-by-bit refunds of any excess deductions).

If there's no smoothing out between now and the new year - can I still get a refund on the P21 balancing statement?

Thank you all again for your help.

namenotavailablE

FGR wrote: »

If there's no smoothing out between now and the new year - can I still get a refund on the P21 balancing statement?

Yep. It makes the New Year that little bit happier