employer took all my overtime money

Asmooh

Hi all,

I decided to take some overtime at my job to be paid out today.
When I checked my payslip I didn't get anything extra and I was wondering why.

When I contacted hr and payroll about this they told me that I was on week 1 Tax status before and I need to pay that back (revenue told me I might get back because I paid extra) then they came up with some weird figures from 2014 that my previous employer didn't pay enough tax but I wasn't even in Ireland in 2014!

Now I need to spend hours of contacting both my old employer and revenue and payroll just to get this sorted out

My old job was 20500 and and got around 1500 +- a month on my account and my new one is 27500 and I get around 1900 on my account.

When I check bruto to netto calculator it seems to be correct, how can they take all my overtime money this month (around 800 euros) because of tax?

It doesn't make any sense to me

toadfly

They can't, did your gross increase? It's obviously not right. Even if you're oover your thresholds you should be 49% net.

Stheno

Asmooh wrote: »

Hi all,

I decided to take some overtime at my job to be paid out today.
When I checked my payslip I didn't get anything extra and I was wondering why.

Was your gross the same as normal?
And have you been working in Ireland all of this year?

Mrs OBumble

Are you married and joint-accessed for tax? Did anything in your husband/wife's tax situation change?

ibarelycare

Your employer hasn't taken your money. This is a tax issue.

Are you still on a Month 1 basis? Or are you on cumulative basis?

Your first port of call is to speak to Revenue. Your employer applies your tax credits as supplied to them by Revenue. Your employer cannot discuss your personal circumstances with Revenue.

You need to phone your local Revenue office (to find the number, put your PPS number into the Revenue contact locator) and explain the situation to them and ask what is going on with your tax credits.

brian_naga

Work on payroll software
In ireland, tax, usc are done on a cumulative basis. Week 1 means your pay is worked out as if it was paid on the first week of the year and the rest of year did not happen. This is normally done when people switched between jobs before the P45 is process from the previous employer.

Money would never be paid directly by the company to revenue without appearing on you payslip.

Your Gross pay should be weekly amount+overtime hours

If you are on a week one basis the worse case should be
528(27500/53)+800 = 1328 gross pay
I assumed you paid tax all at the highest rate and had no tax credit and pay USC at max rate of 8%
USC: 98.75
TAX: 531.2
PRSI: 53.12
Net pay of 644.93

I would contact HR and ask that the overtime be paid through the system. If they still insist it was sent to revenue, ask for the receipt number for the transaction.
Then i would contact revenue and ask them for
1. Your cutoff point usually(33800) for the year, this is point where you move from lower tax to higher
2. Your tax credit usually (3300) for the year.
3. If you were not in the country for 2014, confirm with them your PPS number was not used in 2014 for any payroll
If you need any other help, PM me

brianomc

It also happens occasionally that revenue send the wrong figures on tax credit certificates to employers. I have received ones for staff for the next tax year where they got no tax credits at all even though their circumstances hadn't changed. A quick call by them to revenue fixes it up.

I would call revenue first, find out what your tax credits are and who they had you registered as working for last year. It's possible that your payroll person said they were guessing your reduced tax credits were down to underpaying tax last year without really knowing the reason. If someone asked me why they werent getting the normal tax credit this would be one of the reasons I might give them. There are others but revenue can tell you exactly.

As others have said, does the overtime show up as part of your gross pay or does it only show your regular pay amount?

Mrs OBumble

Another possibility is if the OP is married and jointly assessed, and at the same time his/her spouse has had a change to tax credits. It can happen that the credits are all moved to one person from the other, and the one they are moved from suddely loses a lot of cash from one payroll run to make up for the rest of the year.

uck51js9zml2yt

Mrs OBumble wrote: »

Another possibility is if the OP is married and jointly assessed, and at the same time his/her spouse has had a change to tax credits. It can happen that the credits are all moved to one person from the other, and the one they are moved from suddely loses a lot of cash from one payroll run to make up for the rest of the year.

Good point and worth exploring.
I found out revenue had givenvmy credits to my wife who wasn't working it got sorted over the phone.

Asmooh

Sorry I wasn't on it phone that much but it seems that my old employer paid out a lot of tax instead of taking it so I my overtime money went to tax because my previous employer decided to give all the tax money back