# How much of my bonus will be taken off me?



## pixieKen (23 Feb 2007)

Hi, my bonus is going to be 2K....presently after tax is taken from my wages i get 2700K a month.  can anyone tell mehow much of the 2K bonus will be taken off me in tax?
thanks


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## ClubMan (23 Feb 2007)

*Re: how much of my bonus will be taken off me*

41% tax (20% if you are not on the high rate), 2% health levy and 4% _PRSI _I presume?


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## pixieKen (24 Feb 2007)

*Re: how much of my bonus will be taken off me*

thanks for that..........so half of it will be taken off me then


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## ClubMan (25 Feb 2007)

*Re: how much of my bonus will be taken off me*

No - 47% if my figures are correct.


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## liteweight (25 Feb 2007)

*Re: how much of my bonus will be taken off me*



ClubMan said:


> 41% tax (20% if you are not on the high rate), 2% health levy and 4% _PRSI _I presume?



Presumably if the OP's salary does not exceed the 20% threshold then this tax will be refunded through salary over the rest of the year. What happens to the 2% health levy? Is this automatically refunded through take home pay or does one have to claim it back at the end of the year, and from whom if this is the case.


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## ClubMan (25 Feb 2007)

*Re: how much of my bonus will be taken off me*



liteweight said:


> Presumably if the OP's salary does not exceed the 20% threshold


What do you mean by this? That the original poster is paying 20% tax only? If so and the bonus does not push them into the 41% bracket then the deductions would presumably be 20% tax + 4% _PRSI _+ 2% health levy (assuming _PRSI Class A_)?


> then this tax will be refunded through salary over the rest of the year.


Don't understand this.


> What happens to the 2% health levy? Is this automatically refunded through take home pay or does one have to claim it back at the end of the year, and from whom if this is the case.


I don't think that _PRSI_/health levy deductions once applied are ever refunded other than for standalone pension contributions. _PRSI_/health levy are charged weekly/monthly or whenever salary is paid and are not balanced annually like tax as far as I know.


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## Satanta (25 Feb 2007)

*Re: how much of my bonus will be taken off me*



liteweight said:


> Is this automatically refunded through take home pay or does one have to claim it back at the end of the year, and from whom if this is the case.


http://www.welfare.ie/forms/prsiref1.pdf
Here is the form for claims of Health Levy and who to send it to... 

but it may just be for pension contributions as per CMs post??


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## liteweight (25 Feb 2007)

*Re: how much of my bonus will be taken off me*

Sorry Clubman I wasn't very clear. What I meant was that IF the OPs salary did not exceed the 20% SRCOP then any tax paid on the bonus would be refunded over the coming year.

With regard to health levy...I thought that if the annual salary did not exceed approx 29k then the health levy was not charged on the salary. In the month the bonus is paid, tax rises to 41% and the salary is pushed into the 2% health levy bracket. Is this not the case?


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## ClubMan (25 Feb 2007)

*Re: how much of my bonus will be taken off me*



liteweight said:


> Sorry Clubman I wasn't very clear. What I meant was that IF the OPs salary did not exceed the 20% SRCOP then any tax paid on the bonus would be refunded over the coming year.


You mean ... if the bonus would push them into the 41% bracket but over the whole year their total earnings should not push them into that bracket then will they get the overpayment of tax back? I presume so. If not automatically then certainly by asking for a _P21 _balancing statement at the end of the tax year.


> With regard to health levy...I thought that if the annual salary did not exceed approx 29k then the health levy was not charged on the salary. In the month the bonus is paid, tax rises to 41% and the salary is pushed into the 2% health levy bracket. Is this not the case?


Not sure. _PRSI _is far too complicated.


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## liteweight (25 Feb 2007)

*Re: how much of my bonus will be taken off me*

[broken link removed]



			
				revenue said:
			
		

> Employees earning €480 or less per week in 2007 (€440          in 2006) and are exempt from Health Contribution of 2%.



I presume that most employers will deduct the 2% health levy in a month when an employee receives a bonus which carries them over the threshold? In that case, the employee should be able to claim it back surely?


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## liteweight (25 Feb 2007)

*Re: how much of my bonus will be taken off me*



Satanta said:


> http://www.welfare.ie/forms/prsiref1.pdf
> Here is the form for claims of Health Levy and who to send it to...
> 
> but it may just be for pension contributions as per CMs post??



http://www.welfare.ie/topics/prsi/prsiclasses.html

Thanks Satanta. Missed your post last night....too much vino apre match!

The link above just says who to contact in the event of overpayment of PRSI, so I presume it applies to everyone, not just for pension contributions.


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