newseeker1
Registered User
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If you get paid for untaken paid leave, thats extra income, so you will pay more tax.
If you dont take the leave, and work as normal, your income stays the same and so does your tax.
Conclusion -bad idea!
Do you really have the option of not working holidays time? According to the Organisation of Working Time Act it is illegal to pay an employee in lieu of their statutory holiday entltlements.
Only to the extent of an opportunity cost - a salary increase or no salary increase is one thing, but the option of a salary increase OR the equivalent value in extra leave would be something for an individual to consider...Applying that logic, accepting a salary increase is a bad idea!
You need to see how much you value your time off in monetary terms.
You will be taxed at your marginal rate, so if you pay at 41% the total including PRSI and USC will be 52% (?).
This means you will reveive 48% of your gross pay for every day of your holidays you work instead of taking off.
The reverse also works.
If you value your time off more than 48% of your gross pay, then if it's available you could take unpaid leave to add to your holidays.
Applying that logic, accepting a salary increase is a bad idea!
If you get paid for untaken paid leave, thats extra income, so you will pay more tax.
If you dont take the leave, and work as normal, your income stays the same and so does your tax.
Conclusion -bad idea!
Applying that logic, accepting a salary increase is a bad idea!
Wrong-the information given was for taking pay in lieu of paid hols.
That's two of my posts that you have sought to twist where no reason exists. If you nothing to add to a thread don't post!
I did have something to add - Pointing out that your logic was flawed. Applying your logic, nobody would work overtime purely because it's taxable. As for your accusation regarding the twisting of posts, where was the second post? Perhaps you shouldn't be so sensitive...
I answer the question asked-would they pay more tax if they opted to be paid in lieu of hols. (that's the only context you should read it in)
Of course a salary increase equals more tax! That's stating the blatantly obvious! Your post was meaningless in the context of the OP's question as was your other post.
If you get paid for untaken paid leave, thats extra income, so you will pay more tax.
If you dont take the leave, and work as normal, your income stays the same and so does your tax.
Conclusion -bad idea!
Thanks for reply and clarification
Apologies if i'm asking question already answered
To clarify from my viewpoint
If I work 160 hours in a month but am due/entitled to 2 weeks annual leave during that month. I decide to 1 weeks of that leave entitlement as holidays and and decide to forgo the other weeks holidays and get paid for it instead am I right that my pay slip should look like
Work Hours = 160 (120 standard hours + 40 hours that I am taking pay for instaed of taking the holidays)
Annual Leave(holidays) = 40 hours
Am I right?
Thanks
I have zero interest in engaging in a long drawn out argument with you. The simple fact is that your conclusion is flawed ("if you earn more, you'll pay more tax...Conclusion, bad idea"). Now you're looking to have an argument about it. No thanks.
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