Tax on income levy???

L

legend99

Registered User
Messages
842
In my place of work it seems that we have paid tax on the income levy - e.g. gross weekly pay of €1,000, then levy = €10 but tax has been paid on the €1,000 as opposed to €990 - can anyone confirm if that is correct?

Thanks!
 
legend99 said:
In my place of work it seems that we have paid tax on the income levy - e.g. gross weekly pay of €1,000, then levy = €10 but tax has been paid on the €1,000 as opposed to €990 - can anyone confirm if that is correct?

Thanks!
Click to expand...

To me the levy would be on a gross wage.

if present gross wage is 1000 them levy is 10 euro.

I see levy to be counted as part of prsi
 
I think the original poster's point is that the levy is €1K @ 1% = €10 but then tax and PRSI are calculated on the original gross figure of €1K rather than on the €900 figure net of the income levy. As far as I know this is correct and there is no income tax credit or other allowance in respect of the income levy.

Update - see here:
Q. Does the Income Levy reduce my taxable income for PAYE / PRSI purposes?
A. No.
Click to expand...
 
It is hard to follow, anyway from the top of my head:

Gross Pay = 1000
PAYE = 192.61
PRSI = 54.92
Income Levy = 10

Net Pay = 742.47

The Income Levy is returned to Revenue as PAYE, the Parking Levy (when/if implemented) as PRSI.
 
ClubMan said:
I think the original poster's point is that the levy is €1K @ 1% = €10 ... rather than on the €900 figure net of the income levy.
Click to expand...

Glad you aren't doing my taxes! Though it would sort out the deficit pretty quick ;)
 
Thanks guys - yes, the point I was asking is that tax is charged on the gross amount of pay before levey deduction
 
legend99 said:
Thanks guys - yes, the point I was asking is that tax is charged on the gross amount of pay before levey deduction
Click to expand...

It would seem so. The Levy is calculated on 'Identified "Gross Income" as defined'. PAYE/PRSI are based on "Gross Income" less Superannuation.
So, you end up paying PAYE/PRSI on the Levy too.
Tax on tax...
 
Crugers said:
The Levy is calculated on 'Identified "Gross Income" as defined'. PAYE/PRSI are based on "Gross Income" less Superannuation.
Click to expand...

This appears to be correct ....So we now have to pay 1% Levy on our pension contribution

Watch out........Next budget , we will probably end up paying PAYE/PRSI on our pension contributions as well
 
It was explained to us in work that the levy would be applied to taxable pay. So i took that to mean that i was paying 1% of my salary minus my pension contribution. So if my gross is €1000 and my pension is €30 the levy applied is €9.70.

is this wrong? Wouldn't be suprised at all if our payroll dept got it all wrong and we all get a bill come december!
 
Havana said:
It was explained to us in work that the levy would be applied to taxable pay. So i took that to mean that i was paying 1% of my salary minus my pension contribution. So if my gross is €1000 and my pension is €30 the levy applied is €9.70.

is this wrong? Wouldn't be suprised at all if our payroll dept got it all wrong and we all get a bill come december!
Click to expand...

Yes , that is wrong....Its taxable pay INCLUDING your pension contribution........

Check your next payslip and multiply your full gross pay x 1 %

If it is as you say above , then you will get a bill in December 09 for ........€ 15.60 underpayment
 
Havana said:
is this wrong? Wouldn't be suprised at all if our payroll dept got it all wrong and we all get a bill come december!
Click to expand...

Yes. It comes off before any Pension deductions, but after the Travel Pass and bike scheme.
 
You must log in or register to reply here.
Back
Top