# Payslip calculations



## zag (13 Sep 2004)

[original post edited to removed username and signature which could identify the employee - given that salary and other details of a 3rd party are being discussed.]

Hi there,

I have a small business and recently hired my first employee. I need to produce a payslip with their paycheque and would like some advice.


Their salary is E43,000, paid monthly (x12).

They are Single, no Kids, no Mortgage,
no Pension, no VHI, no BIK,
no Tax Credits due.

I figure their monthly payslip should show:
GROSS         - E 3,583.33
PAYE         - E 778.33
PRSI         - E 118.92
NETT        - E 2,686.08

DEDUCTIONS - E 0.00
TAX CODE        - A1
Insurable weeks - 4



1. Are my figures correct?
2. Is the Tax Code right?
3. Am I right in making (12 x monthly payments) or should it be (13 x 4-weekly payments)?

4. In coming months do I just multiply these base figures by number of months worked to populate the 'Year to Date column'? e.g. in month 5 shows PRSI at E594.60 (5x 118.92).

5. How do I handle 'Insurable weeks'? With 52 weeks in weekly as opposed to 48 by monthly...
How do I account for 4/5 week months, etc?

6. Anything else I'm missing?


Thanks in advance.

[removed]


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## aoservices (14 Sep 2004)

Are the figures correct?


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## Macker (15 Sep 2004)

The figure for PAYE is correct 

The figure PRSI is 192.96 calculated as follows

Gross salary 3583.33
Amount Exempt 551.00


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## Macker (15 Sep 2004)

Don't know what happened there 

I calculate figure for PRSI as 192.96 calculated as follows

Gross salary         3583.33
Amount Exempt         551.00
                     3032.33
4 %                   121.29
2 %                    71.67 on 3583.33
Total                 192.96


2. This depends on a number of issues. The vast majority of taxpayers are Tax code A1.

3. It doesn't matter which 

4. In reality you should calculate on a cumulative basis per month and deduct from the previous year to date to give the current position. If you receive an amendment to tax credits during the year then the cumulative year to date position deducted from the previous cumulative year to date is the way to calculte the current month.

5. There are some months with 4 weeks and some with 5 weeks (I think it depends on the number of Fridays in the month. Could be wrong here)

6. There is no PRSI paid over 42,176 (check this) i.e. amount payable at 4% This changes with every budget 
The 2 % health levy is payable on all income.
Don't forget about employers PRSI when making your Return 
If this employee has not worked before then a reduced amount of tax may be payable.


I hope this helps. If not let me know and I try and explain in better detail.


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## macker (15 Sep 2004)

In addition try 
[broken link removed]

The calculation for PRSI is the annual amount due divided by 12 up to a maximum of 42176. In addition 2% is due on all income. 

The calculation in my previous reply is based on the monthly amount due.


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## xxxanotherpersonxxx (18 Sep 2004)

*Here's what I came up with*

Standard rate cut off point = 28000
Tax credits = 2560

For four weekly calendar month:
Gross: €3583.33
Net: €2611 (rounded)
Tax deducted: €778.33
PRSI Employee: €194.68
PRSI Employer: €385.21
Total PRSI: €579.89

For five weekly calendar month:
Gross: €3583.33
Net: €2615 (rounded)
Tax deducted: €778.33
PRSI Employee: €189.60
PRSI Employer: €385.21
Total PRSI: €574.81

Note that the last couple of months the PRSI will be different because of the earning thresholds. PRSI is calculated on a week by week basis.


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