Hi
I work for a large public sector body and am paid monthly (I'm a permanent employee). My nett salary each month fluctuates quite a lot and I am getting really fed up with it. I have been told that this is because I am taxed on a cumulative or 'Year to Date' basis. However, I have checked with two of my colleagues who would be taxed the same and their monthly pay does not vary.
This is my monthly nett pay since the start of the year:
January - €2326
February - €2423
March- €2334
April – €2247 (after a pay increase).
Here is what I sent to Payroll and the response I received back:
Hi
Now that I have received my full increment, I find that my salary this month is nearly €100 less than last month! So despite receiving a pay-rise in the middle of last month, I am considerably down in my salary.
I have done the sums and it appears my PAYE has been miscalculated by nearly €100.
This is how my payslip should have been calculated:
Main Pay €3,717.00
Total Pay €3,717.00
Deductions: €292.26
Gross Pay for PAYE €3424.74
PAYE Calculation:
Cut Off (Period) €2,668.83
€2668.83 x 20% = €533.76
Gross Pay for PAYE minus Cut Off = €755.91
€755.91 x 40% = €302.36
Total Tax: €836.12
Minus Tax Credit (Period) €271.15
Grand Total PAYE - €564.97
PAYE Deducted on Payslip - €657.38 - this is incorrect
Response:
Your year-to- date (YTD) PAYE for April is calculated as follows:
PAYE:
Gross taxable YTD: €13,404.26
Cut-Off YTD: €10,675.33
Tax Credits YTD: €1,084.60
€10,675.33 @ 20% = €2,135.07
+
€2,728.93 @ 40% = €1,091.57
-
€1,084.60 = €2,142.04 YTD
As you paid €1,484.66 YTD as of March, the difference of €657.38 was deducted in April to bring you up to date.
Could anyone explain how this works? I don't understand how an employee's salary can vary month to month by so much because they are taxed on a cumulative basis? Should I contact Revenue?
Many thanks
I work for a large public sector body and am paid monthly (I'm a permanent employee). My nett salary each month fluctuates quite a lot and I am getting really fed up with it. I have been told that this is because I am taxed on a cumulative or 'Year to Date' basis. However, I have checked with two of my colleagues who would be taxed the same and their monthly pay does not vary.
This is my monthly nett pay since the start of the year:
January - €2326
February - €2423
March- €2334
April – €2247 (after a pay increase).
Here is what I sent to Payroll and the response I received back:
Hi
Now that I have received my full increment, I find that my salary this month is nearly €100 less than last month! So despite receiving a pay-rise in the middle of last month, I am considerably down in my salary.
I have done the sums and it appears my PAYE has been miscalculated by nearly €100.
This is how my payslip should have been calculated:
Main Pay €3,717.00
Total Pay €3,717.00
Deductions: €292.26
Gross Pay for PAYE €3424.74
PAYE Calculation:
Cut Off (Period) €2,668.83
€2668.83 x 20% = €533.76
Gross Pay for PAYE minus Cut Off = €755.91
€755.91 x 40% = €302.36
Total Tax: €836.12
Minus Tax Credit (Period) €271.15
Grand Total PAYE - €564.97
PAYE Deducted on Payslip - €657.38 - this is incorrect
Response:
Your year-to- date (YTD) PAYE for April is calculated as follows:
PAYE:
Gross taxable YTD: €13,404.26
Cut-Off YTD: €10,675.33
Tax Credits YTD: €1,084.60
€10,675.33 @ 20% = €2,135.07
+
€2,728.93 @ 40% = €1,091.57
-
€1,084.60 = €2,142.04 YTD
As you paid €1,484.66 YTD as of March, the difference of €657.38 was deducted in April to bring you up to date.
Could anyone explain how this works? I don't understand how an employee's salary can vary month to month by so much because they are taxed on a cumulative basis? Should I contact Revenue?
Many thanks