New Year, New Payslip – and we all sit down and wonder “Why is that Different?”!
When FF were in Govt they hit tax credits hard, the current FG/Lab administration have mostly looked elsewhere. None the less, most people will see some changes in their payslips this year.
So what changes should you expect?
More PRSI
If you earn less than €352 in a week, you do not have to pay PRSI – and that remains the same.
But if you earn over €352 in any given pay week, regardless of how much you earn, you will see the weekly Employees PRSI charge on your payslip increase by exactly €5.08.
What changed? Well, in 2012 if you earned more than €352 you did not have to pay the 4% PRSI charge on the first €127 of income. in 2013, this exemption is removed resulting in an additional charge of €127 x 4% = €5.08.
Renting?
We get a lot of feedback from people saying they thought the Rent Tax Credit is completely gone, but no! If you have been renting continuously since before Dec 8 2010, you are still eligible to the rent tax credit, although at a reduced rate each year, until 2017.
If you are already in receipt of the rent tax credit, Revenue automatically carry if forward in your tax credits to the next year, albeit at the reduced rate.
From 2012 to 2013 the typical annual rent tax credits have been reduced as follows, resulting in a modest change in your payslip if you have the rent tax credit.
What Else?
If your pay has changed and the difference isn’t explained away by the Rent or PRSI changes, then it will be down to a change in circumstances. For instance, if your marital status changed, or where married you have had children and your job has changed. Your pay may also look different if you were not in continuous employment last year or your pay rate has changed significantly.
Hope that helps you in reading your payslip. The next important document you will receive will be your 2012 P60, which is your PAY and Tax summary for that year. When you receive this we will be able to start reviewing your 2012 taxes for refunds = please find our updated refund application forms here.
Best wishes,
John O’Connor