Cumulative Basis

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Bex181018

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Hi there,

Is it normal for your net pay to be different each month despite having the same gross wage?
I was working in one company until the end of May 2024 and now work in a different company. I have the same gross amount each month but each month I've a different net pay amount. In all my previous jobs, I've always received the same net pay each pay period so I'm just confused. I've 2 tax credits (the single tax credit and employee tax credit - there's been no change to my tax credits).

I queried it with my payroll department who said, "TAX & USC are cumulative hence why the difference - This means that each pay day, all earnings and all tax credits from 1 January of that year are accumulated and deducted accordingly. Because of your previous employment figures and wage changes monthly – Your deductions will fluctuate hence why they are calculated on a cumulative basis."

Not sure why she said, "wage changes monthly" as my gross wage is the same each month. I still don't really get from her explanation why my net pay is different. Does that mean I can expect all future payments to have a different net pay? If so, can I change this as I would prefer to know how much income I have a month.

Thanks.
 
Your payslips should show all deductions and it should be possible to make sense of those?
 
ClubMan said:
Your payslips should show all deductions and it should be possible to make sense of those?
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I've paid €150 more in tax deductions this month, not sure why though as my gross pay is the same. Tax credit amount has stayed the same also.
 
Were you off work after leaving the first job for a month or two? If so, it's possible that you had accumulated tax credits and rate bands from the 'off-period' which would have reduced your deductions in the new job (you'd have seen a bigger take home pay than normal) for maybe one or two pay runs but which eventually 'normalise' (i.e. you'd be seeing more deductions -which will level off- after maybe 2 or so months in the new role).
Otherwise, if your gross pay, credits and tax bands remains consistent, you shouldn't be seeing significant variations in net pay if the cumulative basis applies. There isn't anything like a non-taxable expense refund included in your payslip messing up the results?
There are a number of calculators out there which may help to get an idea of what you'd expect to be taking home:

Deloitte's: https://services.deloitte.ie/
PWC's: https://download.pwc.com/ie/budget-2024/income-tax-calculator.html
My Excel spreadsheet (uses macros): http://taxcalc.eu/monthlyss/Employee PAYE calculator.xlsm
 
I finished my old job on a Friday and started my new job the following Monday so there was no break. I've also claimed no expenses and there isn't any on the payslip either.
I just remembered my first payslip was emergency taxed as my tax credits weren't moved to my new job. I was told I got all that overpayed tax back in my second paycheck though.
So when I got my July payslip (3rd payslip) I assumed that would be what I would have as a net pay for each subsequent payslip but August was €150 less.
 
Bex181018 said:
I've paid €150 more in tax deductions this month
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So, compared to last month, the gross is the same, the PRSI and USC deductions are the same, the income tax is €150 higher this month, and there are no other differences?
 
You would need to post figures from your final payslip in the old job and then figures from the payslips in the new job

It could be that your new employer didn't get the up to date tax credits and cut-off points for some reason or other

You can check your tax credits, etc on MyAccount

View your pay and tax details

This page describes how you can view your pay and tax details
www.revenue.ie www.revenue.ie
 
Has your pay increased to the extent that you would be paying tax at the higher rate now? If that's the case, you may see changes where you had unused standard rate band from the the start of the year that's getting used up.

As an example, you might have had enough unused rate band to only pay at the standard rate in June, enough left to pay some higher rate in July but less than you would normally and pay the amount in August that will for the rest of the year.
 
Ciru75 said:
Has your pay increased to the extent that you would be paying tax at the higher rate now? If that's the case, you may see changes where you had unused standard rate band from the the start of the year that's getting used up.

As an example, you might have had enough unused rate band to only pay at the standard rate in June, enough left to pay some higher rate in July but less than you would normally and pay the amount in August that will for the rest of the year.
Click to expand...
Yeah my pay is now in the higher tax band so maybe that's it. I'll find out anyway if I get tax back next year. Thanks everyone for all of your replies! I'm sure it's fine
 
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