Calling all brainboxes - please help me with a PRSI Calculation

Z

z103

Guest
I'm trying to work out the following calculation, and am getting different results depending on who I ask.
I've also looked at the ready-reckoner
http://www.welfare.ie/publications/prsi1_07.pdf
(a 48 page 'ready reckoner!)

Anyway, here's the question-
Using 2007 figures, Class A PRSI

Employee has earned €46200 up till November.
Final payment is December.

December payment of €73800 (total gross for the year = €120000) Note that both ceilings are straddled

I'm getting the answer of €1657, is this correct?
 
€1,913.98

€127*52/12 = €550.33 @2% = €11.00

€48,800 - €46,200 = €2,600 (before hitting ceiling) - €550.33 = €2,049.67 @ 6% = €122.98

€73,800 - €2,600 = 71,200 @ 2.5% = €1,780

€11 + €122.98 + €1,780 = = €1,913.98

I'm open to correction by other brainboxes only of course !
 
I calc it as 1,885.25 as follows

First..........551 @ 2% ....................................................11.02
Next ......2,049 to bring cumulative to 48,800 @ 6% ...........122.94
Next ......5,742 to bring monthly payment to 8,342 @ 2% ....114.84
Balance 65,458 @ 2.5% ...............................................1,636.45

Total ........................................................................1,885.25

Open to correction
 
asdfg said:
I calc it as 1,885.25 as follows

First..........551 @ 2% ....................................................11.02
Next ......2,049 to bring cumulative to 48,800 @ 6% ...........122.94
Next ......5,742 to bring monthly payment to 8,342 @ 2% ....114.84
Balance 65,458 @ 2.5% ...............................................1,636.45

Total ........................................................................1,885.25

Open to correction
Click to expand...

I'll run with that after making a pigs ear of my own effort.
 
Thanks for your responses. That last one seems to make relative sense.

I'll be back next week for another PRSI brain teaser (only joking!)
 
First..........551 @ 2% .................................................. ..11.02
Next ......2,049 to bring cumulative to 48,800 @ 6% ...........122.94
Next ......5,742 to bring monthly payment to 8,342 @ 2% ....114.84
Balance 65,458 @ 2.5% ...............................................1,6 36.45
Click to expand...
I've just taken another look at this. I think the second half is wrong. Should the balance be
(71200-8342)= 62858
62858@2.5% = 1571.45

The first 2600 (Below the 48800) has already been calculated in the first half.

Total = 1872.28
 
No I don't think so.
AfaI can see the total has to add up to 73,800
so
.......................Cumulative
First..........551.......551
Next ......2,049 ....2,600
Next ......5,742 ....8,342
Balance 65,458 ..73,800.

Total ...73,800

Your total adds up to 71,200

I open to correction
 
Here is how I calculated it.
Below 48800. 2600 falls below ceiling
Band 1 = 550.33 @ 2% = 11.01
Band 2 = 2049.67 @ 6% = 122.98

Above 48800. 71200 falls above ceiling
Band 1 = 550.33 @ 2% = 11.01
Band 2 = 7791 @ 2% = 155.83
(Note that both these bands are 2% so they can be combined)
Band 3 = 62858 @ 2.5% = 1571.46


Total is 11.01 + 122.98 + 11.01 + 155.83 + 1571.46 = 1872.28


You seem to have applied the bands to the amount under 48800, but not the amount over 48800

550.33 + 2049.67 + 550.33 + 7791 + 62858 = 73800
 
You are applying 2% on 1100

Band 1 551 @ 2% = 11.02
Band 2 as you call it is split between
a) Under limit of annual 48,800 2,600 -551 = 2,049 @ 6% to bring cumulative up to 48,800 = 122.94
b) Under limit to bring monthly to 8342: 8342 - 2600 = 5742 @ 2% = 114.84

Band 3 Balance of 73,800 calc on monthly basis 73,800-8,342 = 65,458 @ 2.5% = 1,636.45

Summary

Band 1 ......................11.02
Band 2a .........122.94
.......2b .........114.84
Total Band 2 ..............237.78
Band 3.....................1,636.45

Total PRSI ...............1.885.25

I think thats it

See also all Class A possibilities here? :)

Also just to let you know the monthly PRSI @ 4% free figure is 551
 
... Band 2 as you call it is split between ...
Click to expand...

The SW14 has all three bands split between under 48800 and over 48800 (not just band 2). I don't think you are properly splitting the above 48800 amount across the three bands.

Band 3 Balance of 73,800 calc on monthly basis 73,800-8,342 = 65,458 @ 2.5% = 1,636.45
Click to expand...
Some of that 73800 is under the 48800 ceiling.

551 is 550.333... rounded up, or (127*52)/12
I'm not going to dwell on this! :D
 
Some of that 73800 is under the 48800 ceiling.
Click to expand...

2,600 is. That is why I split Band 2.
PRSI is the most confusing taxes ever devised, you have to take into account monthly and yearly tresholds when calculating.
 
Here's one final test of the result. We'll split the pay into two payments.

So, imagine the employee has been paid €46200 up till October. The €73800 is going to be split between Nov and Dec. (€2600 in Nov to bring the annual cumulative up to €48800. The remainder, €71200 will be paid in December)

What results do you get for November and December using your method?

Here's what I get;

November, Paid €2600. PRSI = 133.99
December, Paid €71200. PRSI = 1738.29

Total, Paid €73800. PRSI = 1872.28
 
I would go with orginal calc. (i.e. €1657.46)

.....................551 @ 2% =
....................2049 @ 6%
..................71200@ 2%
Additional.....19900 @ .5%

If you go with the second cal. (i.e. €1885.25), you would be due a health levy refund that can be claimed from the PRSI refunds section.

Band 1 ......................11.02
Band 2a .........122.94
.......2b .........114.84
Total Band 2 ..............237.78
Band 3.....................1,636.45

Total PRSI ...............1.885.25
 
I would go with orginal calc. (i.e. €1657.46)

.....................551 @ 2% =
....................2049 @ 6%
..................71200@ 2%
Additional.....19900 @ .5%
Click to expand...

This does not take into account the monthly amount before the increase to 2.5% (anything above 8432 pm)

all Class A possibilities

If you go with the second cal. (i.e. €1885.25), you would be due a health levy refund that can be claimed from the PRSI refunds section.
Click to expand...

I think it has to be calc on the monthly basis (See Additional Health Contributions from the link) and if any overpayment at the end of the year you have to apply for a refund. Daft but it wouldn't be the first daft element about this confusing tax.
 
I would go with orginal calc. (i.e. €1657.46)

.....................551 @ 2% =
....................2049 @ 6%
..................71200@ 2%
Additional.....19900 @ .5%
Click to expand...

This does not take into account the monthly amount before the increase to 2.5% (anything above 8432 pm)

all Class A possibilities

If you go with the second cal. (i.e. €1885.25), you would be due a health levy refund that can be claimed from the PRSI refunds section.
Click to expand...

I think it has to be calc on the monthly basis and if any overpayment at the end of the year you do have to apply for a refund. Daft but it wouldn't be the fitst daft element about this tax.
 
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