How to Read your Payslip
Anyone who works has to receive a payslip, it is the law! Most people who receive payslips never look at them. Payslips often end up languishing in a drawer. Did you know that your payslip contains all the information you need to check you are paying the correct tax. Your tax is recorded on your payslip. If you know how to read your payslip, you will know how much tax you are paying. The first step to reading that payslip is to know what you are looking at.
A person’s payslip is a receipt from their employer detailing the breakdown of their salary/wage. It shows how much the employee is getting paid in total, this is referred to as gross pay. It details the amount of tax (both PAYE and USC) the employee is paying to Revenue and it shows the amount deducted for social insurance (PRSI). PRSI is paid to the Department of Social Welfare. It will also show your Local Property Tax (LPT) charge if you pay by way of payroll deduction. In addition to the taxes and welfare charges, a payslip will also show any additional voluntary deductions for items such as union dues, pension contributions, etc, and finally a payslip will also show the net pay, which is the take home pay the employee receives.
Firstly, check the basics. Are your name, and personal public social number (PPS No.) correct, PAYE, USC and PRSI details correct? If you need help with your PAYE and USC details, simply call Revenue (1890-333-425). Speak to the Revenue operator and ask them to help you understand what your allowances are. Revenue have set out details for PAYE workers.
Secondly, check the level of income. Where you paid correctly? Do you know the make up (salary, overtime, etc) of your gross pay? Where you paid for the correct hours? To work out your salary, determine your hourly rate by the number of hours you work in the given pay period (week/month), add on any extra hours worked, (remember to note the relevant hourly rate, ie do you get paid extra for working after 5pm?) then add on any additional items (bonus, commission etc). All these items will form part of your income, which in turn will go towards the figures used to determine your deductions. Ask your payroll operator to explain these items if necessary.
Thirdly, check your voluntary deductions, are you paying the correct values into your pension?
Finally check your net pay. This value should always match the actual value (to the penny) of how much money you have actually been paid. Check the level of income paid or transferred into the bank. If it doesn’t match contact your payroll department or payroll outsourcing provider immediately!