Take Home Pay Calculation - is this right?

B

bijou

Registered User
Messages
71
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
 
€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.
 
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.
 
LNR said:
Can somebody tell me why the calculator is not showing up for me. There is an x symbol shown on screen.
Click to expand...
Perhaps you don't have Java installed?
There are other tax calculators out there. Try for example.
 
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