Overtime and tax

aaakev · 29-09-2015 01:14PM #1

Hi all. My sister in law is having some trouble in work and I said I'd ask here for some advice. She works in a restaurant full time, she get paid minimum wage and pays very little tax, approximately €10 a week.

She sometimes gets asked to do over time but when the payslip comes through she doesn't earn anything extra as most of the overtime payment goes to the tax man. She said this is not the case for the other girls working with her that they all come out with a good bit more. Can anyone she'd any light as to why this might be happening? She has said it to her employer who is uninterested and said she has to work the overtime

She has also never submitted a p21 so iv told her to register for revenue online

gerrybbadd · 29-09-2015 03:03PM

aaakev wrote: »

Hi all. My sister in law is having some trouble in work and I said I'd ask here for some advice. She works in a restaurant full time, she get paid minimum wage and pays very little tax, approximately €10 a week.

She sometimes gets asked to do over time but when the payslip comes through she doesn't earn anything extra as most of the overtime payment goes to the tax man. She said this is not the case for the other girls working with her that they all come out with a good bit more. Can anyone she'd any light as to why this might be happening? She has said it to her employer who is uninterested and said she has to work the overtime

She has also never submitted a p21 so iv told her to register for revenue online

There could be an infinite amount of reasons, but the answer most likely lies in the amount of tax credits she has.

Keep in mind, if she has a taxable payment from Social Welfare, this will have a negative effect on the amount of tax credits she has.

Best course of action is to ring the tax office and see whats going on

aaakev · 29-09-2015 03:05PM

Cheers, no social welfare payments at all

Geuze · 30-09-2015 12:54PM

aaakev wrote: »

Hi all. My sister in law is having some trouble in work and I said I'd ask here for some advice. She works in a restaurant full time, she get paid minimum wage and pays very little tax, approximately €10 a week.

She sometimes gets asked to do over time but when the payslip comes through she doesn't earn anything extra as most of the overtime payment goes to the tax man. She said this is not the case for the other girls working with her that they all come out with a good bit more. Can anyone she'd any light as to why this might be happening? She has said it to her employer who is uninterested and said she has to work the overtime

She has also never submitted a p21 so iv told her to register for revenue online

If she is earning the NMW, ans so earns approx 300-400 pw, then the tax on extra income would be 20% tax + 4% PRSI plus USC.

So maybe 30% on extra income, and she gets 70% of the extra income.

Now, what might be happening is the extra income might cause her to cross 350 pw, and she may start paying PRSI on all income?

aaakev · 30-09-2015 01:41PM

Geuze wrote: »

If she is earning the NMW, ans so earns approx 300-400 pw, then the tax on extra income would be 20% tax + 4% PRSI plus USC.

So maybe 30% on extra income, and she gets 70% of the extra income.

Now, what might be happening is the extra income might cause her to cross 350 pw, and she may start paying PRSI on all income?

im not sure actually so i must get a look at her payslips. she is being told she has to work extra hours now but she is reluctant because she is coming out with nothing extra to show for it

Overtime and tax

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