PRSI Increase, no change in class..wrong?

T

T_Virus

Registered User
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17
Last month I worked for 3 weeks, having started a contract on April 7th. I get paid monthly so I earned 3 weeks pay. On my payslip my PRSI class is AL as I'm on €500 a week for this contract (4 days if that makes a difference? I don't have any other work at the minute). I get paid montly.

From looking at SW14 on the Welfare site I see if I'm just barely in that class - monthly rate is from €1,543.01 to €2,167.

That month I earned €1500 gross.

My PRSI, according to my calculations is as follows

First 127 per week - no PRSI
Balance @ 4%

Total PRSI per week = 14.92

So for that month (April) = €44.76.

For May, I worked 4 weeks and got €2000 gross, still in the AL class, still no extra work to put me over.

I expected my PRSI to be €60 (4x14.92) - after all I've not moved class or gotten any wage increase.

Much to my surprise my PRSI was €140.

I've calculated myself, and used other online calculators, and this amount appears incorrect. I thought it might be the health levy, but i don't pay the health levy because I'm earning €500 or less.

Any advice would be appreciated
 
Your payslip seems to be wrong- your calculation of 14.92 is accurate per my calculator. I calculate that you should be coming out with 475.09 net per week (PRSI of 14.91 and income levy of 10 are the only deductions).

You can check this with my spreadsheet: http://taxcalc.eu/monthlyss

You might confirm that the figure shown on your payslip isn't an aggregate value (i.e. the total of all PRSI paid since you were first paid this year-to-date) rather than just the PRSI for the current month alone. Other than that, I cannot think of any logical reason (other than an error) why it should have changed.
 

Hi Deadlyduck, many thanks for the reply. I've used your online calculator to confirm my calculations before my post. I've now used your excel spread sheet too.

I'm not sure if you can assist me with this, but I believe I've figured out how the calculation came to be, but I still don't believe it is correct.

On my May Payslip there is the following:

Income
Salary: €2000
Holiday Pay: €65.61 ( I have no idea what this holiday pay is, perhaps for the May bank holiday or? )

Total Pay: €2065.61
Gross Pay for PAYE: €2004.89

Running on this total, my PRSI works out to be €140.07 because the €4.89 has pushed me into the next PRSI bracket.

I don't know why I got Holiday Pay, and I don't know why €60.72 of it is PAYE exempt and the other €4.89 isn't.

I guess I need to talk to my Pay Office again
 
Total Pay: €2065.61
Gross Pay for PAYE: €2004.89
Click to expand...

Are you paying into a pension fund/ income protection scheme? Are you availing of the cycle to work scheme, travel saver scheme or an approved profit sharing scheme? Possibly some of your pay is a non-taxable 'subsistence/ travel' allowance?

The difference between 'top-line gross' and gross for PAYE purposes is usually as a result of a tax relievable deduction such as those I mentioned.

As you noted, once you go over the €500 per week value you get hit with additional levies- generally, when you're at the margin of the €500 threshold, it's a good idea to evaluate the effect on your net pay of paying the extra into a pension fund to avoid these levies.

Overall, I'd second your idea of talking to the payroll office to get clarification of the reason for this happening- they should be able to sort it out in a straightforward manner.
 
Figured it all out thanks to the staff in the Payroll Office who got back to me.

Last year I did some non-salary work that I got paid for. Holiday pay is 8% of that total and is paid in May of each year covering the previous year's non-salary payments.

The reason the total pay and PAYE pay differs is that I paid €60.72 into the mandatory pension (public sector worker), which isn't taxable. It seems normal service will resume next month, thanks very much Holiday Pay
 
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