Minimum wage Tax

ColG · 25-02-2016 05:31PM #1

Quick Question,
My young lad just got his first payslip. He's 20 in his first proper job.
He's on minimum wage and doing 40 hours a week.
His gross pay was 366 for the week . He paid 41.47 tax, 4.97 PRSI and 29.28 Social Charge.
His net pay wasy 290.28
His contract is only 15 weeks as its a placement in college.
Is there anyway for him to claim back some of the tax or is it all normal?
Thanks

Sync · 25-02-2016 05:34PM

No he should be coming away with almost all of it. http://ie.thesalarycalculator.co.uk/hourly.php says he should be taking home €340

Would definitely call revenue to query it.

edit: If I recall correctly - when I was in college I ended up getting what little tax I paid back at the end of the year too.

5star02707 · 25-02-2016 05:38PM

ColG wrote: »

Quick Question,
My young lad just got his first payslip. He's 20 in his first proper job.
He's on minimum wage and doing 40 hours a week.
His gross pay was 366 for the week . He paid 41.47 tax, 4.97 PRSI and 29.28 Social Charge.
His net pay wasy 290.28
His contract is only 15 weeks as its a placement in college.
Is there anyway for him to claim back some of the tax or is it all normal?
Thanks

he shouldn't be paying that high of tax to begin with.

looks like he's on an emergency tax?

he needs to sort his tax credit to reduce the tax he's paying.
let him fill form 12a can be found on the revenue website
http://www.revenue.ie/en/tax/it/leaflets/it11.html

he shouldn't be paying USC if he will earn less than 13,000 euros in a year.

can be found here page 19/60

http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf

last but not the least your son will be able to receive refunds if he paid too much tax.

please see the attached file too

ColG · 25-02-2016 05:39PM

Thanks for that!
Probably a stupid question here but why is there a tax credit of 3300 in that calculator?
Will get him to call up either way! Thanks!

Kristopherus · 25-02-2016 05:45PM

ColG wrote: »

Thanks for that!
Probably a stupid question here but why is there a tax credit of 3300 in that calculator?
Will get him to call up either way! Thanks!

That tax credit is made up of Personal Allowance of €1650.00 and a PAYE Allowance of €1650.00. Every PAYE worker gets those basic allowances.

5star02707 · 25-02-2016 05:45PM

ColG wrote: »

Thanks for that!
Probably a stupid question here but why is there a tax credit of 3300 in that calculator?
Will get him to call up either way! Thanks!

a normal person's entitled for

personal (single) tax credit which is 1650 euros
and PAYE tax credit of 1650 = 3300 tax credit for the whole year

ColG · 25-02-2016 05:48PM

Ah it's combining them! Got it!
I presume he is just getting charged emergency tax so!
Thanks for the help!

allthedoyles · 25-02-2016 09:21PM

keep an eye on his total earnings for 2016 , cos if he earns less than 12012e he can claim back the USC , or as its only a 15 week placement , you could ring the tax office now and tell them what you estimate his 2016 earnings to be .

If he had current medical card he would pay a lot less USC .

languagenerd · 25-02-2016 09:32PM

5star02707 wrote: »

he shouldn't be paying USC if he will earn less than 13,000 euros in a year.

Generally, if you work irregular hours or temporary jobs, you do pay USC with each payslip, but you can apply to get it back at the end of the year/if you leave the country mid-year. If you have a fixed contract that states an annual salary of under €13000, then you're not charged at all, but if you're on an hourly rate you wouldn't yet know what your earnings for the year would be.

Minimum wage Tax

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