Tasty Income Tax Calculation Sum

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kellyr4

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My annual salary is €31K. Due to the staff in my company accepting new work practices we are to receive a compensation payment and some money backdated due to a payfreeze from the national wage rises. Below are the details. I am paid fortnightly.

I am single.



Usual Gross forthnighly payment : €1198

Compensation payment: €2000

2.5% Payrise backdated to 1st October 2007 (approx 15 fortnightly pay days)

Further 2.5% Payrise backdated to 1st April 2008 (2 fortnightly pay days)

I am due to receive a normal forthnightly wages plus the above, probably in my next paycheque or the one after that. Basically I am looking for a ball park figure of what I will receive after tax.
 
Based on the above your gross payment will be as follows :

1,198.00 X 2.50% X 15 = 449.25 (Back-pay from Oct 2007)
1,227.95 X 2.5% X 2 = 61.40 (Back-pay from April 2008)

plus 2,000.00 compensation payment = 2,510.65 gross back-pay.

Your new basic will be 1,258.68 fortnightly or 32,725.68 annual salary.

I don't have your tax credits information, so I can't do the gross-to-net calculation, but you will also pay PRSI and levies on your once-off payment.
 
As PAYE is calc on a cumulitive basis some of current pay will be taxed at 41%

I've calc the Gross pay before current month as 8,386 - 1198 * 7 (assumed 7 fortnightly payments - this may not be correct).
SRCOP 9171 (34064/52*14)

Gross pay current Month ..........................3,739

Gross pay Cumulitive ..............................12,125
SRCOP ................................................10,481 (34,064/52*16)
Tax at 20% (10,481- 9,171) = 1,310 @ 20% = 262
3739-1310= 2429 @ 41%.........................= 996
Gross Tax .............................................= 1258
Tax Credits ..............................................136
Net Tax ...................................................1122
Less PRSI and Levies....................................214 (Mathpac did you allow for 2 weeks payments)
Net Pay .........................3739-1122-214 = 2,403

As your new monthly gross wage is less than the monthly SRCOP you will receive any tax paid at 41% back over the coming months.
Don't forget that your annual salary for tax purposes will include the bonus thereby bringing your salary for the year over the SPCOP

Hope this makes sense.
If you want post exact figures including no of payslips etc and I'll have another go at it
 
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