# Take Home Pay Calculation - is this right?



## bijou (18 Sep 2008)

Hi all,
I have just used the Karl Grabe calculator to work out possible take home pay for a job i have seen and I can't get my head round the prsi/tax bit.

Weekly take home pay. (Single)
Selected Tax year is 2008
Gross Take Home Pay     = € 351.0
Tax                     = € 0.0
Take Home Pay after Tax = € 351.0
Less PRSI               = € 0.0
Net take home pay       = € 351.0

The calculator's weekly take home pay shows both tax and prsi as a zero.
The pay is stated as €9/hr for a 39 hour week - is this right??? If so, does paying no tax/prsi have any implications on any possible future claims such as jobseekers benefit etc...... should the unexpected happen??

Sorry for such a thick question but if anyone can explain this to me I'd be grateful.
Cheers//bijou


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## ClubMan (18 Sep 2008)

€9 p.h. x 39 hours a week x 52 weeks a year = €18,252 p.a. gross. Enter this figure into the calculator and you get:

Annual Summary:


**************************************************
Calculate end of year tax returns (Single)
Tax year for calculations is 2008
(Form P21C)
Selected currency is Euro €
**************************************************

INCOME FROM EMPLOYMENTS €:
Income for Self                18252.0
Other Incomes/Benefits         0.0
                        --------
Gross Statutory Income         18252.0


CREDITS (@20%)€:
Personal Allowance            9150.0
PAYE Allowance                9150.0
Medical Insurance Allowance    0.0
Service Charge Allowance        0.0
                        --------
Total Credits (@20%)        18300.0


ALLOWANCES (@41%) €:
Med Expenses, Perm Health    0.0
Expenses                    0.0
                        --------
Total Allowances            0.0

COMPUTATION OF NET TAX PAYABLE BY YOU €:
Gross Statutory Income         18252.0
 Less Allowances before tax    0.0
                        --------
Taxable Income                 18252.0
   Which is chargeable as follows:
         18252.0 @ 20% =        3650.4
         0.0 @ 41% =        0.0
                        --------
Income Tax due                3650.4
 LESS €:
  Tax Credits (18300.0 @20%)    3660.0
Total Income Tax due        0.0
Net Tax deducted under PAYE    0.0
                        --------
Tax Underpaid                € 0.0 

Weekly Summary:

Weekly take home pay. (Single)
Selected Tax year is 2008
Gross Take Home Pay     = € 351.0
Tax                     = € 0.0
Take Home Pay after Tax = € 351.0
Less PRSI               = € 0.0
Net take home pay       = € 351.0

Basically on c. €18K your tax credits mean that you have a nil tax liability. Presumably the _PRSI _class that applies also results in a nil _PRSI _liability. See www.revenue.ie and www.welfare.ie for more on the tax and _PRSI _details.

Note that the calculator still takes a tax free allowances approach to the calculations which is a little confusing in this day and age of tax credits. _Karl _did this to facilitate backward compatibility with earlier years which used _TFAs _rather than credits.


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## LNR (18 Sep 2008)

Can somebody tell me why the calculator is not showing up for me. There is an x symbol shown on screen.


Basically I am trying to figure out the PAYE and PRSI payments when receiving a salary of approx. €420.00. 

I will be working 35 hours for €12 per hour. What will my take home pay be?

I would apprecriate any help or tips on how to get calculator to work.


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## ClubMan (18 Sep 2008)

LNR said:


> Can somebody tell me why the calculator is not showing up for me. There is an x symbol shown on screen.


Perhaps you don't have Java installed?


> Basically I am trying to figure out the PAYE and PRSI payments when receiving a salary of approx. €420.00.
> 
> I will be working 35 hours for €12 per hour. What will my take home pay be?
> 
> I would apprecriate any help or tips on how to get calculator to work.


There are other tax calculators out there. Try  for example.


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