LostinPhilly1
Registered User
- Messages
- 17
You have used your month's tax credits on your normal salary. Your will be paying 40% tax on all of the bonus. There is no difference to overall tax amount if salary and bonus were paid on the same day. It's just depressing to see.....
How is that a rip-off?
Your employer just applied the tax laws as voted by the Dail
If you think taxes are too high, then vote a party that will lower taxes and consequently, any public services that are funded by taxes
Any extra income earned by anybody is taxed at the person's marginal tax rate.
There are three marginal tax rates in Ireland: 0%, 20%, 40%.
Once a single person reaches 35,300, the MTR is 40%.
The entry point to the top MTR is very low in Ireland, very low.
Once a single person reaches 35,300, the MTR is 40%.
Congratulations; you are now one of "the rich".OK, it's a personal opinion. I'm not here to dive into a political tangent.
Yea, no, that's not how it works. Can't let that one stand unchallenged. Nearly half the workforce pays no income tax but all income at or above the average industrial wage has deductions of over 50%. That's the problem, not some nonsense implication that a broader and more balanced tax base will damage public services.vote a party that will lower taxes and consequently, any public services that are funded by taxes
You pay 52% tax on bonus, if it's reflected to your payslip as "bonus". Happened to me once. Practically, government took bigger cut than me for my bonus.
Would your employer pay into an executive pension instead of having to take it through payroll. Something to ponder for again
Eh no, it's nothing to do with how the employer has flagged it. All additional income is taxed at marginal rate, as others have said in this thread. There are no special taxes on bonuses (except for employees of state-supported banks earning a bonus of more than €20,000, who, between tax and USC, pay about 90% on the full amount.).
That's not (shouldn't be) an additional income. I am not getting payment from a different company, I am getting payment related my full time job. If it was included to my monthly salary, I would pay %40 tax on it (because of bracket) but because it was added as "bonus" I got taxed 52% for it.
Your effective tax rate on the bonus income was 52%, but not because it was flagged as a bonus. A permanent monthly pay rise of that amount would have been taxed in exactly the same way.the conclusion is right?
Apologies, so eventually I paid 52% tax on my bonus because of being 40% tax band (eg. im rich), so even my explanation is wrong the conclusion is right?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?