Podcast
Questions and Answers
What is the lower PAYE tax band for a single person in Ireland?
What is the lower PAYE tax band for a single person in Ireland?
All employees pay both Employee PRSI and Employer PRSI.
All employees pay both Employee PRSI and Employer PRSI.
False (B)
What is the rate of Employee PRSI until October 1st, 2025?
What is the rate of Employee PRSI until October 1st, 2025?
4.1%
The PAYE tax credit for a single person is €______.
The PAYE tax credit for a single person is €______.
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Match the following types of deductions with their corresponding percentages:
Match the following types of deductions with their corresponding percentages:
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Which of the following is a non-taxable addition to gross pay?
Which of the following is a non-taxable addition to gross pay?
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The amount you receive after all deductions is referred to as net pay.
The amount you receive after all deductions is referred to as net pay.
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What happens to pension contributions in relation to taxable income for PAYE purposes?
What happens to pension contributions in relation to taxable income for PAYE purposes?
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Flashcards
Gross Pay
Gross Pay
The total amount of money you earn before any deductions are taken.
Net Pay
Net Pay
The amount of money you receive after all deductions are taken from your gross pay.
Deductions
Deductions
Taxes and other contributions that are deducted from your gross pay, such as PAYE, USC, and PRSI.
PAYE (Pay As You Earn)
PAYE (Pay As You Earn)
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PRSI (Pay Related Social Insurance)
PRSI (Pay Related Social Insurance)
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USC (Universal Social Charge)
USC (Universal Social Charge)
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Pension Contributions
Pension Contributions
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Tax Bands
Tax Bands
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Study Notes
Understanding Pay Slips & Tax Calculations in Ireland
- Pay slips detail gross pay (total earnings), deductions (taxes and contributions), and net pay (amount received after deductions).
- Key taxes deducted are PAYE, USC, and PRSI.
- PRSI comprises employee and employer portions.
- Pension contributions reduce taxable income for PAYE (with limits).
- PAYE tax bands vary by marital status and income:
- Single: 20% up to €44,000, 40% above.
- Married (one income): 20% up to €53,000, 40% above.
- Married (two incomes): First spouse 20% up to €53,000, second spouse 20% up to €35,000, remaining income taxed at 40%.
- PAYE tax credits include single person (€2,000), employee (€2,000), and potentially others (e.g., rent, medical).
- USC tax bands are:
- €0 - €12,012: 0.5%
- €12,012 - €27,000: 2%
- €27,000 - €70,000: 3%
- Above €70,000: 4%
- Employee PRSI is 4.1% on gross pay until October 1st, 2025, then rising to 4.2%.
- Employer PRSI is 11.15% on gross pay, with a reduced rate of 8.9% for some employees earning less than €496 per week.
- Taxable additions to gross pay include employer-paid health insurance.
- Non-taxable additions include business travel, bike-to-work scheme, and professional body subscriptions paid by employers.
Pay Slip Breakdown
- Pay slips show gross pay (before deductions).
- Deductions include PAYE, USC, and employee PRSI.
- Net pay is the amount received after deductions.
- Pension contributions (employer-paid) are also deducted.
- Year-to-date totals are shown for income and tax payments.
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Description
This quiz covers the essential components of pay slips and the intricacies of tax calculations in Ireland. You will learn about gross pay, deductions like PAYE, USC, and PRSI, and their effect on your net pay. Additionally, it delves into how pension contributions and PAYE tax bands vary for different personal circumstances.
