P60 details for 2013

G

Guru

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Hello,

I am looking at a friends P60 for last year and they want to make sure it is correct.

1 employment for the whole year, single male, 37.

Income: €23,659

Net Tax Deducted: €1,800.68
Total USC deducted: €974.97
Total PRSI: €925.26


I believe the USC & PRSI is correct.

The income tax seems high to me:

Should it not be €23,659 x 0.2 = €4,731.80 - €3,300 (tax credit) = €1,431.80

Therefore he should be entitled to a refund of €368.88

Is that correct? Thanks.
 
I just seen on the P60 the tax credit is 2931.24.

Where did the tax office get this figure from?

"49 weeks of insurable employment"
 
Thanks for the reply Berni.

It is possible, I will ask and let you know.

Lets say for example he is at the 20% tax rate.

Is the full amount of the Job seekers benefit he received deducted from his tax credits or is 20% of the amount he received deducted?

Is it deducted from the PAYE tax credit, the single person tax credit or both?

Is it deducted from just his 2013 benefit allowance or if he received it towards the end of 2012 would that also be deducted from his 2013 taxes?
 
Its simpler than that.
The total amount of JSB he received, is added to his total income for the year.

He should request a balancing statement for the year. THe Revenue will be aware of the JSB, and they will calculate any refund.

The figure of tax credit of €2931.24 does not seem correct. He really needs to ask the Revenue for a balancing statement.
 
He received JSB in 2012, this P60 is for 2013.

His tax band was decreased €1845

His credits were reduced to €2931.24 from the standard €3300 with the difference being 20% of the tax band decrease amount.

Studying a bit of accountancy at the minute and aside from helping him out with this I would be interested to know how these figures were arrived at for my own curiosity.
 
If I were your friend I would not request a balancing statement until I knew why the tax credits and rate bands were restricted.

It may be that your friend incurred an underpayment in a previous year which was coded for 2013, or perhaps that JBS was incorrectly carried forward into 2013. There may be other reasons.

Either way, the only way your friend will know for certain is to contact Revenue for an explanation before doing anything else.
 
Ok, I will tell him to go into the tax office.

Why do you recommend he does not apply for a balancing statement? If he did so would that not identify any issues with the credits and rate bands?

-------------------

Secondly can someone give me a link that shows step by step how to calculate his PRSI?

I got his information but it does not show the calculations or explain them fully:

How is PRSI Calculated?

PRSI contributions will be payable on the following basis:

At the appropriate rate for an employee on all reckonable earnings (including notional pay).
The employer's share at the appropriate rate on the reckonable earnings of the employee (including notional pay)/ The employer's contribution for classes A and H includes a 0.7% National Tranining Fund Levy.
For the self-employed at Class S (social insurance at 4% an ALL reckonable income).
Employees covered under Classes A, B, C, D and H with reckonable earnings of not more than €352 do not pay PRSI for that week. However, the employer's share of PRSI remains payable as normal. Employees continue to be covered for the benefits and pensions appropriate to their PRSI Class. Once earnings exceed €352 both employee and employer PRSI is charged.

Reckonable earnings for PRSI purposes are gross pay including notional pay (or benefit in kind) if applicable, plus superannuation and permanent health insurance contributions made by an employee. These payments may be allowable for income tax purposes.

Source: welfare(.)ie/en/Pages/PRSI---Pay-Related-Social-Insurance---Contributions-and-Clas.aspx
 
1 employment for the whole year, single male, 37.
Income: €23,659 (including bonuses)
No BIK
49 weeks of insurable employment

How do you calculate his PRSI?
 
Guru said:
1 employment for the whole year, single male, 37.
Income: €23,659 (including bonuses)
No BIK
49 weeks of insurable employment

How do you calculate his PRSI?
Click to expand...

You're really tearing the behind out of this!

PRSI is calculated based on the pay period - i.e. if the person is paid weekly it's calculated weekly, if paid monthly it's calculated monthly.

PRSI isn't calculated cumulatively, so if you earn 500 this week you'll pay Class A1 PRSI, and if you earn 300 next week you'll be in Class AO and pay no PRSI.

So, the only way to check if he's paid the correct PRSI is to check each individual payslip.

The answer to the mystery of your friend's tax credits / rate band is certainly nothng to do with PRSI, in case that's what you were thinking.
 
Guru said:
Ok, I will tell him to go into the tax office.

Why do you recommend he does not apply for a balancing statement? If he did so would that not identify any issues with the credits and rate bands?

Because a review of your friend's liability may throw up other issues, that you may not be aware of.
Click to expand...
 
mandelbrot said:
You're really tearing the behind out of this!

PRSI is calculated based on the pay period - i.e. if the person is paid weekly it's calculated weekly, if paid monthly it's calculated monthly.

PRSI isn't calculated cumulatively, so if you earn 500 this week you'll pay Class A1 PRSI, and if you earn 300 next week you'll be in Class AO and pay no PRSI.

So, the only way to check if he's paid the correct PRSI is to check each individual payslip.

The answer to the mystery of your friend's tax credits / rate band is certainly nothing to do with PRSI, in case that's what you were thinking.
Click to expand...

It has moved beyond my friends issue to my own personal interest in being able to calculate PRSI.

The deloitte tax calculator almost exactly matched his PRSI payments without knowing his pay periods and his salary from month to month is variable with a monthly performance related bonus.

deloitte(.)ie/tc
 
Sophrosyne said:
Guru said:
Ok, I will tell him to go into the tax office.

Why do you recommend he does not apply for a balancing statement? If he did so would that not identify any issues with the credits and rate bands?

Because a review of your friend's liability may throw up other issues, that you may not be aware of.
Click to expand...

There is not a lot of potential for that. Single male, PAYE and he definitely does not look to have underpaid by much if at all so as far as that goes its a minimal risk.
Click to expand...
 
Guru said:
It has moved beyond my friends issue to my own personal interest in being able to calculate PRSI.

The deloitte tax calculator almost exactly matched his PRSI payments without knowing his pay periods and his salary from month to month is variable with a monthly performance related bonus.

deloitte(.)ie/tc
Click to expand...

Well if he's in the same PRSI class most / all of the time then calculating it weekly/monthly/yearly won't make a jot of difference!
 
I would recommend he applies for a P21 balancing statement If they are registered with the service PAYE ANYTIME (which I highly recommend) they can request it through this, if not they may ring their local tax office to send a P21 out to them. The tax credits don't seem much sense to me but their friend may not be aware of their friends full situation such as what tax credit's their friend may have applied for there are always two sides to every story. Everybody's situation is different. Let us know how it all works out if you can.
 
I would suggest that he request (on line) a statement of Jobseekers Benefit received in 2013. While that may be Zero, or it may account for the fact that he appears to have worked for 49 weeks so there may be 3 weeks of Benefit which would be coded in to reduce his credits.

While welfare say that revenue now have records of welfare payments they don't seem to have the full detail
 
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