PayRoll Expert Needed

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?guy

Registered User
Messages
24
Hi Folks

Could really use some advice.
My mother was out of work sick last year and was not paid, it turns out she should have been paid and now her employer is reimbursing the money. However she is being hit hard on tax and deductions over 80% I'm struggling to understand how the taxes are so high. They have sent me a spreadsheet which outlines how each of the taxes are determined.

If anyone has experience on payroll and taxes, and would be interested in helping me out let me know.

Thanks Phil
 
This is an anonymous public forum,so put up the figures and let any of the members experienced in the area have a go at making sense of the figures.
 
Hi Vandriver,

thanks for the reply. I hadn't put up the figures as its fairly complex.
The file I got from her Payroll office is an excel file with a ton of formulas. Also taking into her year to date figures.


Here are the main figures. I just can't figure out why the tax is so high.

They are paying her extended sick leave (959.30 hrs) and also her salary (fortnight 46.50 hrs). Total gross is 18,271.11.

Social Welfare is deducted as she got this while she was off sick 4,324

Other Deductions
Pension - 1,099.12
Pen - Levy - 1,770.05
USC - 957.27
PRSI - 551.82
TAX - 6,141.13

Net = 3,427.29

I don't think the post allows me to attach a document, so If any wants me to send them the file just drop me a PM.
 
Ya seems unreal. But

Gross pay 18,271
Less pension. -1,099
Less pen levy. -1,770
15402
Less tax - 6,141 41% seems high as there should be a tax credit and some at 20%
PRSI. - 552
USC. - 957
Net pay. 7,752
SW PAID. - 4,324
3,428
So the pension deduction is 15.7%
Tax PRSI and USC is 50% of the taxable pay this is high as there is no allowance for standard rate cut off and credit for that week.
The other deduction is just a cashflow thing can't be considered a tax.

Welcome to the austerity there may be some refund of the PAYE I'm future weeks. PM if you need anything further.
 
Thanks Joe,
Yes i think your right she may get a refund at the start of the year.
Thanks everyone
 
OP it's not a payroll expert you need at all, it's a decent tax practitioner.

Emoluments (in this case your mother's salary) are to be assessed to income tax in the year to which they relate, not the year in which they are paid. Now clearly in your mother's case the payment being made now relates to hours she should have been paid for last year, so the correct income tax year for taxing the payments, is 2011. From a payroll operation point of view the employer has done things correctly the only way they can at this point.

It will be up to your mother to get Revenue to issue assessments / balancing statements that take the appropriate amount of income that is currently being treated as 2012 income, and bring it back to 2011. It's all a bit fiddly and the calculations required to ensure correct level of tax, USC etc are too detailed to be trying to put them up on here - Effectively the income etc on her P60 will have to be split, reducing her total 2012 income (and hence reducing the amount of income liable at higher rates of tax/USC), and increasing her 2011 income which would presumably be liable in part or in total a lower rate of tax/USC.

This is the classic case of where it may pay her to pay a professional to make sure she gets her correct entitlement.
 
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