payslip query

Charley

Registered User
Messages
111
Hi,
can anyone help me figure out why so much of an overtime payment went on tax, as I don't know how it's calculated.
I had an extra payment of €71.52 last month but my net monthly pay only increased by 62cent!?

The two payslips I'm comparing are:

APRIL
Basic: 2615.40
Allowances: 300.00
Gross due: 2915.40
Tax: 70.35
PRSI: 116.62
USC: 151.68
Pension 104.61
NET PAY: 2472.14

MAY
Basic: 2615.40
Allowances: 371.52
Gross due: 2986.92
Tax: 133.38
PRSI: 119.48
USC: 156.69
Pension: 104.61
NET PAY: 2472.76

We're married & jointly assessed.

The extra amount all seems to be eaten up in the tax amount almost doubling but I don't know why. I thought that as a 20% tax rate payer that I would have come out with more than 62cent of an extra payment of €71.52...??

Any help in understanding this would be gratefully appreciated.
 
Hi Charley,

It is difficult to give you advice based on two payslips. The PAYE system is cumulative and so your combined income for January through March would also be relevant.

Your tax credits may have changed since April, or your Standard Rate Cut Off Point may have been exceeded or may have been amended.

Only your tax district can give you a definitive answer.
 
Thanks guys,
Deadlyduck, I can't get into that spreadsheet - I tried following the instructions re macros but can't get any further

Sophrosyne, I don't think our tax credits or anything else has changed. The gross earnings year to date are:

January: 2615.40 SRCOP 3215.39 Tax Credit 443.08
February: 5230.80 SRCOP 6430.78 Tax Credit 886.16
March: 6656.84 SRCOP 9646.17 Tax Credit 1280.51
April: 9572.24 SRCOP 12861.56 Tax Credit 1772.32
May: 12559.16 SRCOP 16076.95 Tax Credit 2215.40

Does that help or is there any other figures I should provide/ there's just one person working at the moment
cheers
 
Hi Charley,

Just one observation:-

As mentioned, the PAYE system is cumulative. Therefore, your tax credits cumulate each month, i.e.,

Month 1 443.08
Month 2 443.08 x 2 = 886.16, etc.

Your tax credits are correct for January, February, April and May. However, have a look at your March tax credit. It should be 443.08 x 3 = 1,329.24 rather than 1,280.51.

This could be down to a payroll error, which should have rectified itself in April, when you were given the correct cumulative tax credit.

How much tax did you pay in January, February and March?
 
Jan: Tax 59.07 PRSI 104.62 USC 130.67
Feb: Tax 59.08 PRSI 104.62 USC 130.68
Mar: Tax 118.15* PRSI 57.04 USC 47.42

I've just noticed that that there's a CR beside the tax figure for March so would that be why the tax credit figure is different?

Had forgotten I took unpaid leave early in the year and they deducted it that month so that probably messed things up I'm guessing?

(Is there a very simple guide to how payslips are calculated anywhere...excluding revenue website? They should teach this in school. Is it just me or did the 'old' tax system seem easier to understand!)
 
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