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Help understanding Payslip Tax

  • 11-07-2023 7:09pm
    #1
    Registered Users, Registered Users 2 Posts: 4


    Hello, I am hoping someone can provide help in relation to payslip tax.

    My friend is a student currently working 2 part-time jobs. When she received her payslip for one job, the total deductions somehow equaled her total pay. Net pay was then 0.

    The deductions were mainly income tax and a 'net adjustment'. To share figures, her total pay was 290. Income tax was 117 and this net adjustment was 162. USC made up the remainder.

    None of her colleagues have received these same deductions.We assume the net adjustment is an error, but surely income tax could not be 117?

    Can someone advise, thank you.



Comments

  • Registered Users, Registered Users 2 Posts: 71,143 ✭✭✭✭L1011


    If they have not split their tax credits, the second job will be charged as if there are no credits at all - and pay ~50% between tax, PRSI and USC.

    The adjustment will need to be queried, but if their started the second job and an assumption was made for week 1 emergency tax, and it later turned out there were no credits, there will have been an underpayment that needed correction.

    A student should have plenty of credits to split and not pay higher rate tax on either; it can be sorted out at the end of the year but I'd imagine they want the money now.



  • Registered Users, Registered Users 2 Posts: 4 Len_Brennan


    Thank you very much for the quick reply, appreciate it.

    Yes it would be appear the tax credits were not split, so this would explain the high income tax.

    Regarding the net adjustment and the assumption for emergency tax, I didn't quite understand this sorry. But this was her first and only payslip with this company. She will try and get some clarity from them tomorrow, thanks.



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