How to do a simple PAYE computation ?

I know this seems silly - I have never got my head around the whole cut-off thing. In the old days I could work out how much tax I was due to pay on a monthly payslip using the information on the payslip, but I just can't work it out these days. Can anyone give me a simple working please ?

Assume gross monthly pay of €5,000, pension (tax free) of €250, tax credit of €400 and cut-off of €4,000

Help much appreciated.

z

Woohoo, I just worked it out.

For reference :

1) Reduce the gross pay by the pension amount to get €4,750
2) Tax the €4,000 up to the cut-off @ 20% = €800
3) Tax the balance of €750 @ 42% = €315
4) Add 2 & 3 together and get a tax amount of €1,115
5) Reduce the €1,115 by the tax credit and get €715 tax to be paid this month.

This tax thing is easy really, isn't it . . .

z

[broken link removed] might also be of assistance.

Thanks - Karls calculator was the first thing I looked at, but my initial view of his site indicated that his calculator is based on annual figures only, so I assumed it was based on producing an annual tax liability rather than a weekly or monthly take home pay.

I just checked back and saw that there is a drop-down box allowing you to calculate monthly and weekly take home pay - I had missed this first time.

z

I have a query re a simple tax computation and have used Karl Grabe's calculator but was wondering if someone could confirm that the figures are correct.

I earn 38,000 a year. I get Mortgage interest relief of 66.67 per month, ie 800 for the year and I pay 5% of my gross wage into a pension.

The figures I entered into the calculator were as follows:
Yearly Income: 36100 (ie 38000 - 1900 (this is 5% for the pension))
Entered 800 for Mortgage Interest

Calculator returned:
Weekly take home pay. (Single)
Selected Tax year is 2005
Gross Take Home Pay = € 694.2308
Tax = € 112.38461
Take Home Pay after Tax = € 581.8461
Less PRSI = € 36.573845
Net take home pay = € 545.2723

Is this correct?

I have a query re a simple tax computation and have used Karl Grabe's calculator but was wondering if someone could confirm that the figures are correct.

In my experience Karl's calculator is generally accurate as long as you are on Class A PRSI. There may be very slight discrepancies if you are paid weekly rather than monthly due to the differing monthly and weekly PRSI exemptions.

Thanks Clubman but can you confirm that my assumption re reducing gross wage, etc are accurate, ie have I entered the correct details? Thanks again for your quick response

Yearly Income: 36100 (ie 38000 - 1900 (this is 5% for the pension))

Yes - pension contributions come off gross before calculation of tax/PRSI/health levy deductions if you are paying the pension contributions through payroll. If you are paying them off payroll then you need to recalim tax and manually.