Payslip Review Service; What to Expect

Please note that the results of your personal payslip review will vary. The example provided is for illustrative purposes only, showing the scope of our analysis and the format of our feedback.

Dear Client,

Thank you for choosing our payslip review service.

Payslip Analysis as follows;

Tax Credits

• You are being allocated €328.85 tax credits per month
• This essentially reduces your monthly tax bill by €328.85 
• This is the correct amount for someone in your position (c.€4,000 per year)
• There are additional tax credits that can be claimed on your tax return (rent credit, medical expenses, etc) but these cannot be claimed monthly via payroll

Tax Rates 

• €3,666.67 of your income per month is being subject to income tax (PAYE) at a rate of 20%
• This works out at €44,000 per year at taxed 20%
• You are paying PAYE at a rate of 40% on any earnings over €3,667.67 (c.€2,333 being taxed at 40% per month)
• USC and PRSI are being charged at the correct rates

Deductions

• €300 per month is being deducted from your salary for your company pension scheme. This works out at 5% of your monthly salary
• Pension contributions like this are a good idea as they are deducted pre tax. What this means is that you do not pay tax on the portion of your salary that is contributed to the pension scheme. You are essentially saving €120 per months in tax by contributing to the pension scheme (€300*40%)

Other issues

• There is a €120 monthly deduction for 'Savings scheme'. I would expect that it is some sort of company savings scheme that you opted into
• €8 is also being deducted per month for 'Employee Fund'

Next Steps

 I would ask your payroll team to clarify the savings scheme and employee fund deductions as it is not immediately clear from the payslip what these relates to. Suggested wording as follows;

• 'I noticed that €120 per month is being deducted from my pay for 'Savings scheme' and €8 per month for 'Employee Fund'. Would you mind clarifying what these deductions relate to?'
• Feel free to copy me in the email to payroll team and I can jump in if anything needs clarifying

Everything seems to be in order (correct tax rates etc) but it would be good to get clarification on those two deductions.

 Let me know if you have any questions on the above.

Kind regards

Damien Roche

Irish Tax Hub