PAYE Query

An Cigire

Am I right in thinking with PAYE that income tax,USC, & PRSI together come to a total deduction of about 29% of you’re gross pay each payslip upto €35,500?

Then when you cross this amount it would increase to to approximately 49% deduction if you add them together?

Trying to use it as a deduction % to help with budgeting with the year ahead?

Any help be appreciated?

DesperateDan

You can stick the numbers in here and it will tell you everything: https://download.pwc.com/ie/budget-2019/income-tax-calculator.html

namenotavailablE

Or use my Excel spreadsheet: http://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm

An Cigire

Thanks for that

Geuze

An Cigire wrote: »

Am I right in thinking with PAYE that income tax,USC, & PRSI together come to a total deduction of about 29% of you’re gross pay each payslip upto €35,500?

NO.

You are forgetting tax credits.

MarioLuigi

An Cigire wrote: »

Am I right in thinking with PAYE that income tax,USC, & PRSI together come to a total deduction of about 29% of you’re gross pay each payslip upto €35,500?

Then when you cross this amount it would increase to to approximately 49% deduction if you add them together?

Trying to use it as a deduction % to help with budgeting with the year ahead?

Any help be appreciated?

In a very simplistic view; sort of. It depends on your level of income, your tax credits and cut off, if you're married or single etc. If you want to give more information we can give you an exact figure.

An Cigire

MarioLuigi wrote: »

An Cigire wrote: »

Am I right in thinking with PAYE that income tax,USC, & PRSI together come to a total deduction of about 29% of you’re gross pay each payslip upto €35,500?

Then when you cross this amount it would increase to to approximately 49% deduction if you add them together?

Trying to use it as a deduction % to help with budgeting with the year ahead?

Any help be appreciated?

In a very simplistic view; sort of. It depends on your level of income, your tax credits and cut off, if you're married or single etc. If you want to give more information we can give you an exact figure.

I’m single, no dependents etc.. and on cumulative basis tax and earn over the threshold to get taxed at 40% for the additional half of my wages.

Does that mean my tax,usc and PRSI is averaged out over the year? Or does it start at roughly 29% deduction per fortnightly payslip and go upto 49% once you reach the €35500 point?

Cheers

namenotavailablE

PAYE and USC are normally calculated on the "cumulative basis" which means that it's basically averaged out over the year -assuming that you're employed for the full year and that your salary is consistent, the deductions for theses items will be consistent from pay period to pay period.
Additionally, PRSI is generally 4% of gross pay.

To give a simple example:

Gross annual earnings €60,000, standard rate band of €35300 and annual tax credits of €3300.

The following image shows the calculations for period 1 PAYE, USC and PRSI (and these would essentially be the same in all later periods although the later periods will show cumulative (year -to-date) values for earnings and credits etc):



For PAYE, you can see that some earnings are taxed at 20% and the remainder at 40%- so the calculations are 'averaged out' over the year.

An Cigire

That’s explains it very nicely thank you for in-depth response I really appreciate it.