Take home pay after maternity benefit

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peteb

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A friend asked me about this and tax is my weak point so please don't direct me to revenue examples. I would appreciate if some one could advice the exact take home amount.

The wife earns 26k gross per year and the husband about 45k. He has all her tax credits. The maternity benefit goes to her employer and then she gets 40 percent of her salary. Can anyone tell me what she gets?

Thanks
 
So during maternity leave she will earn (0.4)(26,000/12) = 866.67 pm

Assuming the maternity happens within one year, then her annual income will be:

13,000 regular pay for six months + 5,200 reduced 40% pay for six months = total annual income of 18,200
 
That annual income will be taxed as follows:

18,200 * 20% = 3640 tax, less her 1650 tax credit = 1,990 tax due

She will also pay 4% PRSI, that's 1,040 pa.

USC - I don't have time to calculate it now..............
 
I think what you are looking for is the monthly net income during leave?

The 40% gross will be 866.67 pm.

Hold on a minute, MB is 230 pw or 996.67 per month.

So 40% of her wage is less than the MB.

So in that case surely the employer must pay at least the 996.67 pm?
 
Maternity benefit is not subject to PRSI or USC.

Agree with Protocol that MB is higher than 40% of her salary. Seems the entirety of what she receives will only be liable to PAYE at her marginal rate of 20%. On that basis her net weekly pay will be 230*80% = 184. this is on the basis that her husband has all her tax credits but not her standard rate band.
 
Yes. Looking for net monthly during maternity. Thanks. She is due in early Jan.
 
Kerrygrrrl said:
Maternity benefit is not subject to PRSI or USC.

Agree with Protocol that MB is higher than 40% of her salary. Seems the entirety of what she receives will only be liable to PAYE at her marginal rate of 20%. On that basis her net weekly pay will be 230*80% = 184. this is on the basis that her husband has all her tax credits but not her standard rate band.
Click to expand...

Yes to all the credits. Assessed jointly. Is there a better way to manage it? She's likely going to take the additional 18 weeks unpaid after as she is considering not returning as there will also be another child who will be beginning school 2017.
 
Her contract says
During the first 26 weeks of maternity leave the staff member retains their social welfare maternity allowance. While not required to provide payment during maternity leave, the company agrees to pay staff a percentage of the difference between the department of social welfare maternity payments , and their normal salary, for the first 26 weeks of paid maternity leave as follows:
Staff with 2 years to less than 3 years of service - company pays 40% of difference.

Are we saying because of the low base of the salary all she effectively gets is the MB?? Surely that can't be right?? Not much of a benefit then
 
peteb said:
Her contract says
During the first 26 weeks of maternity leave the staff member retains their social welfare maternity allowance. While not required to provide payment during maternity leave, the company agrees to pay staff a percentage of the difference between the department of social welfare maternity payments , and their normal salary, for the first 26 weeks of paid maternity leave as follows:
Staff with 2 years to less than 3 years of service - company pays 40% of difference.

Are we saying because of the low base of the salary all she effectively gets is the MB?? Surely that can't be right?? Not much of a benefit then
Click to expand...
That is different to what your first post said. She will get the MB of €230 pw plus 40% of the difference between what she normally gets and €230 pw. How much does she get normally per week? It seems to be to be €500. Therefore I calculate that she would get €108 (500-230=270*40%) plus her MB so a gross weekly of €338. This is on the basis that the company calculates its payment on a gross basis rather than net basis.

For the 26 weeks that she will be paid maternity benefit she should have net €266.81. PAYE of 20% on €338, 4% prsi on €108, and usc of 1% on €108 less the PAYE tax credit.
 
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