Question re New 1% Income Levy

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staff

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I just got paid for the first time this year and the amount that was deducted appears to be more than the total of the 1% levy. I earn €45,000 per annum which amounts to €3,750 per month so therefore my 1% levy is €37.50 but the difference in my salary is €42.75 and the extra €5.25 has been added to my income tax. Everything else appears to be same i.e. VHI, pension, PRSI etc. Have there been other changes in budget which I do not know about?

Thanks in advance.
 
Is it possible you arent taking into account your pension, if you have one? This does not get deducted in calculating the tax so its full gross income.
 
JJ1982 said:
Is it possible you arent taking into account your pension, if you have one? This does not get deducted in calculating the tax so its full gross income.
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I am not sure I understand you - my pension is exactly the same as last month along with everything else - VHI, PRSI etc. The difference seems to have been added to my income tax - I just thought that there may have been another change in the budget that I did not hear about.

I was talking to another guy in here who is on very little money c. €20,000 and the difference for him was €100 (which is obviously far too much) so maybe they made a mess of things in accounts.
 
Yes your pension woud be the same. But for example, before, when calculating your income tax if your wages was 100 gross and you had pension of 10 then your tax would be calculated on 100-10=90. Whereas the income levy is calculated on your gross amount with no relief for pension. Maybe if you post your payslip details? If our accounts dept use a payroll package then they probabaly will be calculating it correctly
 
staff said:
I just got paid for the first time this year and the amount that was deducted appears to be more than the total of the 1% levy. I earn €45,000 per annum which amounts to €3,750 per month so therefore my 1% levy is €37.50 but the difference in my salary is €42.75 and the extra €5.25 has been added to my income tax. Everything else appears to be same i.e. VHI, pension, PRSI etc. Have there been other changes in budget which I do not know about?

Thanks in advance.
Click to expand...


Are you comparing with your december payslip - your prsi may have been less in November and December than the rest of the year.
 
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