impact of salary cut

finance2014

Registered User
Messages
3
Hi,

My husband earns 125k and I earn 63k. My company has offered me a parttime role at 54k pro rata, essentially my salary would be 27k. In terms of net take home how would we be impacted if I take the parttime role? We are jointly assessed and my husband holds any tax credits that I can give him.

I tried some of the suggested tax calculators but find it difficult to assess under the various tax bands. Thank you.
 
Well you're paying tax at 41% + 4% PRSI + 7% USC - so 52% deductions - on everything above 23,800.

So if your gross falls by 36k and you're still above 23,800, your net falls by 48% of that.
 
With a salary of 27,000 paid monthly in a paye employment with transferable credits and rate band given to the spouse and with a paye tax credit of 1650 (this is not transferable to a spouse) and with no taxable benefits such as a car or medical insurance and no tax deductible contributions such as a pension contributions the monthly pay would work out like this.

Gross Pay 2250
PRSI 90
USC 100.73
PAYE 368.50
Take Home Pay 1690.77

Annual Calculations below

Prsi 27000 @ 4% = 1080 per annum or 90 euro per month

USC 10036@ 2% = 200.72
5980@ 4% = 239.20
10984@ 7% = 768.88
Total USC 1208.80 or 100.73 per month

PAYE 23800@20% = 4760
3200@41% = 1312
Gross Tax 6072
Less Paye Credit 1650
TAX you pay 4422 or 368.50 per month

Someone who is a proprietary director or employed by a company owned by their spouse wouldn't have an entitlement to the paye credit and would pay an extra 137.50 per month in PAYE.
 
Back
Top