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41% tax (20% if you are not on the high rate), 2% health levy and 4% PRSI I presume?
What do you mean by this? That the original poster is paying 20% tax only? If so and the bonus does not push them into the 41% bracket then the deductions would presumably be 20% tax + 4% PRSI + 2% health levy (assuming PRSI Class A)?Presumably if the OP's salary does not exceed the 20% threshold
Don't understand this.then this tax will be refunded through salary over the rest of the year.
I don't think that PRSI/health levy deductions once applied are ever refunded other than for standalone pension contributions. PRSI/health levy are charged weekly/monthly or whenever salary is paid and are not balanced annually like tax as far as I know.What happens to the 2% health levy? Is this automatically refunded through take home pay or does one have to claim it back at the end of the year, and from whom if this is the case.
http://www.welfare.ie/forms/prsiref1.pdfIs this automatically refunded through take home pay or does one have to claim it back at the end of the year, and from whom if this is the case.
You mean ... if the bonus would push them into the 41% bracket but over the whole year their total earnings should not push them into that bracket then will they get the overpayment of tax back? I presume so. If not automatically then certainly by asking for a P21 balancing statement at the end of the tax year.Sorry Clubman I wasn't very clear. What I meant was that IF the OPs salary did not exceed the 20% SRCOP then any tax paid on the bonus would be refunded over the coming year.
Not sure. PRSI is far too complicated.With regard to health levy...I thought that if the annual salary did not exceed approx 29k then the health levy was not charged on the salary. In the month the bonus is paid, tax rises to 41% and the salary is pushed into the 2% health levy bracket. Is this not the case?
revenue said:Employees earning €480 or less per week in 2007 (€440 in 2006) and are exempt from Health Contribution of 2%.
http://www.welfare.ie/forms/prsiref1.pdf
Here is the form for claims of Health Levy and who to send it to...
but it may just be for pension contributions as per CMs post??
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