Tax laibility changed by Husbands Employer. Is he allowed to do this.

Effectively the employer reduced your husbands salary without and discussion or agreement. I am not sure of the legality of this but surely it is not above board. You can rest assured that if the tax rate on your husbands salary increased the employer would be looking to renegotiate. I would approach the employer and asked to be compensated. If you do not succeed with this look into possibly perusing legal options.

Get your husband to negotiate a gross salary going forward.
 
You have a couple of options here but they all involve some level of disagreement between employee & employer

1. If the Gross Pay has dropped from 2015 to 2016 then there are grounds here for a legal case for a drop in wages with no agreement signed by the employee.

2. If there is a written agreement stating that your husband is getting €80 per week NET then you should contact Revenue and transfer all tax credits out of your husbands name and into your name for the remainder of this year and for future years. This will lumber the employer with a significantly larger tax bill than normal.
 
If your husband is regularly working those hours his employer is in breach of the Working Time Act.

I hope the job has no element of danger (machinery, driving, etc) because I would have serious doubts as to whether the employer is maintaining equipment, etc if that is how he treats his employees.

I would go further than DB74 and would be getting on to Revenue and requesting a nil cert (or do it yourself online) for that employment and let the employer pay more to Revenue than he does to your husband and then get a huge tax rebate at year end when you apply all the rateband and credits and USC.

Seriously! Net pay in this day and age!
 
DB74 said:
You have a couple of options here but they all involve some level of disagreement between employee & employer

1. If the Gross Pay has dropped from 2015 to 2016 then there are grounds here for a legal case for a drop in wages with no agreement signed by the employee.

2. If there is a written agreement stating that your husband is getting €80 per week NET then you should contact Revenue and transfer all tax credits out of your husbands name and into your name for the remainder of this year and for future years. This will lumber the employer with a significantly larger tax bill than normal.
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My husband has had the same net wage paid in to his bank account fortnightly for the past 16 years. We knew all tax, prisi etc were being paid, so it wasn't an issue or at least we didn't think it was an issue until now. I worked full time from 1998 until 2013, all taxes were deducted at source. Like many other People we just went with the flow. Our accountant has just told me, if we contact revenue now and have them revert tax back to single income which is seemingly our right to do, his employer will have to pay a €6000 lump sum to bring taxes up to date, this is going to get complicated.
 
Mrs Vimes said:
If your husband is regularly working those hours his employer is in breach of the Working Time Act.

I hope the job has no element of danger (machinery, driving, etc) because I would have serious doubts as to whether the employer is maintaining equipment, etc if that is how he treats his employees.

I would go further than DB74 and would be getting on to Revenue and requesting a nil cert (or do it yourself online) for that employment and let the employer pay more to Revenue than he does to your husband and then get a huge tax rebate at year end when you apply all the rateband and credits and USC.

Seriously! Net pay in this day and age!
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I will ask our accountant about a "nil cert". I will also talk to my Husband about negotiating a normal gross wage. My Husband is a Head Chef, he expects to work longer hours than normal, but the business he works for has grown substantially over the years. Like any other business that has had huge success the owners focus has become more profit driven, cost centre budgets are impossible to meet, because the more profit made the more profit the boss wants. This has made it impossible for my Husband to hire decent calibre Chefs who can earn the same or more for working in a Hotel or Restaurant that does half the covers with half the workload and stress, invariabley my husband covers the hours he is unable to allocate to other team members who are on an hourly rate as this would impact the impossible budgets set by the boss.
 
This good working relationship is about to go pear shaped. This boss has taken advantaged of perhaps the most important person in his business who has built it up from scratch. It may be time to start thinking of building up someone else's business.
 
I worked in payroll and net wages is something that did not head in. We had a case a few weeks ago where an employee was on a net wage and emergency tax. When the credits came in it appears we needed to pay him a negative gross salary to get his net correct.
If your husband agreed to work for a net pay that is his error. His employers have had a change in costs that did not bother him. Think he is on the same pay before and after USC was introduced. How many times has that rate changed over the last few years both up and down
 
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