# Employer tax calculation query



## TaxNewbie (3 Mar 2012)

Hello,

Need some first-time employer advice! Have done my calculations for weekly tax implication below and would like to know if they look correct, or if I have gone horribly wrong!

Employee earns €500 gross per week, they will be taking home €427 after PAYE, PRSI and USC. (Just used the Deloitte online calculator for that!)

Employer will need to pay approx:

€87 for PRSI
Class AL - 10.75% on whole €500

€21 for USC 
2% on €193 (Rate band 1 of 10,036 divided by 52 weeks to get weekly amount)
4% on €115 (Rate band 2 of 5,980 divided by 52 weeks to get weekly amount)
7% on €192 (All income over 16,016. Ie gross annual salary of 26,000 - 16,016 = 9984 divided by 52 weeks to get weekly amount)

€69 for PAYE
20% on €500 = 100 less weekly tax credits of 31 (given tax credits of 1,650 on tax cert)


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## Black Sheep (3 Mar 2012)

Employer PRSI should be *57*euro. Perhaps this was a typo. 
Other figures appear correct


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## Gervan (3 Mar 2012)

Employee's Prsi?
I calculate this at (500-127)x 4% = €14.92

Then net pay is 500-14.92-21.9-68.27 = €394.91

Employer's Prsi does not come out of the €500


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## TaxNewbie (4 Mar 2012)

Thanks Blacksheep, don't know how I managed that.

Hi Gervan, I didn't mean that the PRSI comes out of the €500, just that the €500 is used in the calculation. Ie €500 x 10.75% is the amount of PRSI payable over and above gross pay?

Thanks for the help with the net pay, I didn't even venture into that calculation yet (just used an online calculator, which only seems to be available for employees liability not employers unless I am missing something!). 

Basically just trying to figure out my weekly costs, which, with the help above seem to be €500 + €69 + €21 + €57. 

Thanks again!


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## Gervan (4 Mar 2012)

No, if Gross Pay is €500, then weekly cost is €500 plus employer's prsi, so €553.75
Employee gets €394.91
Collector General to get €158.84

(Assuming the standard cut-off of €32,800 and OP's Tax Credits given as 1650)


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## TaxNewbie (4 Mar 2012)

Thanks Gervan, I got a bit muddled. Help much appreciated!


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