# Tax deduction on salary and bonus



## mango (23 Mar 2006)

I need your help and assistance to understand this or tell me am I being screwed.
I received my pay slip for this month. Every month my tax and PRSI amounts to just over E300. This month I received my bonus which amounted to E2400. This was added to my salary for this month. I had E1100 taken from my wages for tax and PRSI. The salary and bonus amounted to E4400. Can anyone tell me how I could have to pay so much tax in one month or what is the catch here. They taxed some of my wage on 20% and some on the higher tax bracket of 42%. How can this be justified. Bonus plus salary for the year is under the 32,000 cut off point. I nearly cried when I saw that huge amount of tax taken from me.


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## bazermc (23 Mar 2006)

mango

it may be to do with the fact that your cut off is spread over the year being €2,667 per month. as your salary this month is €4,400 incl bonus it will be taxable at 20% and the balance at 42% less your montly credits. in effect you cannot use next months cutoff point in this months salary payment.

as your montly salary is less then that cutoff you should be able to clawback the tax you paid over the next few months ar the end of the end at the latest. so you are not being screwed

make any sense?


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## xeresod (23 Mar 2006)

The SRCOP of €32k for the year is allocated monthly as €2666.
If you have unused SRCOP from previous months, which you should as based on your post it appears your normal monthly salary is €2000 leaving you with €666 unused, that is also available. 

Presuming this is your March salary, you cumulative SRCOP for the 3 months is €7988 and your salary for the 3 months is €8400, so approx €400 is taxable at 42%.
However, based on the amount of tax deducted, it appears you may not be on a cumulative tax cert but on week 1 basis, which basically means any unused SRCOP doesn't get carried forward and you get taxed at 42% on any excess over the €2666. 

If you are on a week 1 tax cert, which is noted on the cert, call Revenue to a cumulative cert issued so it can be rectified in your next payslip.

_Sorry - post crossed with Bazermc's_


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## mango (23 Mar 2006)

Thank you bazermac. Makes a bit of sense. How do I claw back the tax over the next few months. Do I need to get a form in the tax office or is it automatically done.


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## taxadvisor (23 Mar 2006)

If you're on a cumulative cert your employer will look after it each month.

If you're on a week 1 cert you need to get revenue to change it.

Your employer or Revenue will tell you which cert you are on if you can't find it.


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