Are you lost in front of all the elements on your PAYE payslip? Don't worry, you are not the only one! Here are some of the conditions that you will find on a standard Irish payslip to help you see more clearly.
What are the elements of your payslip?
Your personal public service number (PPS) is a unique identifier. It is used by some state bodies for tax purposes. It helps identify you when you need to access social benefits and public services and information in Ireland.
The PRSI class is generally determined by the employment of a person in the company. There are 11 different classes. For example Class A corresponds to employees. It determines the amount of PRSI contributions you pay.
Weekly/monthly cut off
The amount you can earn each time you’re paid before you have to pay the higher rate of tax. Every time you’re paid, you pay tax at the standard rate of tax up to your standard rate cut-off point.
It means “Pay As You Earn”. This is your salary after deducting income taxes, PRSI and USC.
Each person is entitled to tax credits, depending on their personal situation. Tax credits are awarded each year and tax is calculated as a percentage of your income. Your tax credits are then deducted from your taxes. So this is where the amount of tax you will pay appears. All unused credits are transferred to your next payday.
PRSIs are "earnings-related social insurance" contributions. They finance social protection benefits and pensions. Most people working in Ireland have to pay them.
The amount you pay depends on your job, your income, and the PRSI class you are in.
USC, or “Universal Social Charge,” is the tax that replaced income tax and health tax. You only pay this amount if your gross income is greater than €12,012 per year.
This is your salary before any deductions.
The total amount you receive after taxes, PRSI, and other deductions.
The total amount of money deducted in that pay period.
How is your payslip structured?
Usually, at the top of the payslip, you can find details like your PPSN and that of your employers. This section also specifies the department in which you work and your internal identifier such as your employee number. It is therefore the area of information about you but also about your employer.
In the left section of the payslip, you find your gross salary, that is to say what you receive before tax.
In general, in this section you have all the money that goes in, but sometimes there are also exits. For example, you will sometimes see a pension contribution appear.
Indeed, pension contributions are tax deductible and therefore give the right to tax relief. Some software publishers payroll managers often deduct items such as pension contributions from your gross salary before calculating your tax.
On the left of the payslip are also all the items to withdraw before you get paid, income tax / PAYE, USC, PRSI, etc.
Finally, a block details how much you are paid today "current period" but also how much you have paid so far this year under "YTD". It will also detail the amount of tax, USC and PRSI you paid this year.
Tax errors on payslip
Your employer applies the PAYE tax based on the information from Revenue on your employee tax credit certificate. However, if Revenue's information about you is not up to date, and you have paid too much tax, you must file a claim at the end of the year and notify them of a change in your circumstances. You may also have received tax credits to which you are not entitled. In this case, Revenue will request a refund in the following year and adjust your tax credits.
How is the reimbursement going?
This means that your net salary will be reduced until you finish repaying.
How to get a refund
People who pay too much tax often never claim it, there are a lot of companies that specialize in personal tax returns. According to these, people who take the trouble to file an income tax return get a refund, on average between €800 and €1,200.