Payroll at Christmas

halfforward

We close for 2 weeks at Christmas and get paid a lump sum for the holidays. So basically on the 20th we got paid for week ending 14th and also our holiday pay. When we return in Jan we get paid for week ending 21st. This is all normal but our Employer only gives us 1 pay slip for 3 weeks meaning we pay the higher rate on most of our pay and so are down quite a bit. Why would they do this?

AlmightyCushion

Your tax is calculated based on your yearly income not the income per pay period. The tax you pay for the year should be the same regardless of how your wages are processed. However, if you contact revenue and ask them to check your tax for the previous year (you can actually ask them to do this for the last 4 years) they will recalculate your tax and pay you back if you overpaid. They will also expect you to pay them back if you underpaid as well.

halfforward

Thanks, Yeah I thought that. Just gets a bit confusing when payroll is done this way. Looked at pay slip and have double tax credit and double standard cut off amount, but it's supposed to be 3 weeks pay. I'll keep an eye on next payslip.