Issues regarding salary payment - 2 months in a row.

extrafluff

Hi all. Hopefully this is the right place to post. Looking for some advice please.

I get paid monthly. Last month, my payslip came through and all I got on this was my last week of Parent's Benefit - there was no salary - even though I had been back to work since my Parent's Leave. I contacted HR/Payroll & who got it sorted. ADP who runs our payroll never put my salary through.

This month, I received my payslip and Payroll/ADP have entered 3 lines of pay: Salary, backpay & bonus - salary & backpay have the same amount. This totals over €5500. On my deductions however, my PAYE is over €1300, PRSI is over €220 & USC is €170. There is also a line that says 'advance' of €2300 - looks like they 'advanced' me last months pay. They said this advance deduction is to stop me being paid it again. As an FYI - the advance amount is approx what my net pay is so surely I have paid the tax from last month.

So because my gross pay is inflated by this 'backpay' my total deductions are over €4000. So now I'm left short to the tune of about €8/900. I have contacted HR/Payroll and they have informed me that ADP believe I am in the 40% tax band. This is incorrect and I believe is solely down to them messing up both months pay.

It has been a week since I first contacted HR and it's the same answer every time I contact them - we are investigating with ADP.

Is there anything I can do here? Feels like HR or ADP are dragging their heels and I really need the money owed to me.

Thanks in advance.

Smee_Again

Can you post a picture of last month and this month's payslip?

extrafluff

https://www.boards.ie/discussion/comment/122557565#Comment_122557565

Attached. I don't think there's any sensitive info there (apart from the values). Thanks

Smee_Again

Did you get a cash advance or payment from your employer last month that's not included on that payslip?

extrafluff

I received a BACS payment of €2329.16 a couple of days after I raised the issue last month which isn't on the July payslip.

Smee_Again

The tax on the second payslip was calculated as if you earned that in 1 month instead of over 2 months. Essentially you've been taxed as if you earned twice as much as you do. They then deducted the cash advance from the net amount as you had already received that amount (though I'm not sure why its marked as T (taxable).

I don't work in payroll so I don't know what they can do or how they fix this but they have made a mistake.

extrafluff

https://www.boards.ie/discussion/comment/122558265#Comment_122558265

Thanks for your help.

Yep I have no idea myself. Just anxious to get this sorted.

I'm considering contacting Revenue to see if there's anything they can do.

wench

Are you on a week 1 basis for tax?

If so, your employer has to treat each pay period as a standalone entity, and cannot roll over unused credits from last month.
This is normally sorted out at the end of the year by getting a review done then.
Not sure if Revenue can trigger that sooner and put you back on a cumulative basis, worth checking with them.

cdeb

Looks like you're on Week 1 tax status ("Tax/USC Status" of W). That means tax is calculated only with reference to the current period, and it doesn't look back at past months to carry forward unused tax credits, etc - see Revenue note here.

That looks like an issue with your tax cert rather than your employer. The link I've given says "You can contact Revenue to find out why you are on the Week 1 basis, by using the MyEnquiries service in myAccount"

Edit - comment from wench crossed.

extrafluff

Hmm. You're both correct. I just logged into Revenue & it seems I was issued with an updated Tax Credit Certificate in July that says 'Week 1 Basis'. I have no idea what has caused this. I wonder was it the Parent's Benefit that has caused this but I was on Paternity Benefit last year & that didn't initiate a change in my tax.

Dial Hard

Just ring Revenue and ask them to switch you back to cumulative credits. You'll get any tax owing to you in the following month's payroll.

Necro

https://www.boards.ie/discussion/comment/122559094#Comment_122559094

If the Parents Benefit claim is still open on your file it can sometimes cause this, be no harm to ring that section to make sure they've closed it off and then ring Revenue to adjust your credits that should do the trick.