Kellie Murphy started a new job - Leaving Cert Business - Question 12 - 2022
Question 12
Kellie Murphy started a new job. She registered her details on the revenue website my account.
Calculate the amount of PAYE Kellie Murphy will pay annually. Show you... show full transcript
Worked Solution & Example Answer:Kellie Murphy started a new job - Leaving Cert Business - Question 12 - 2022
Step 1
Calculate PAYE
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Answer
Calculate PAYE on the first €36,800:
PAYE on €36,800 = €36,800 × 0.20 = €7,360.
Calculate the balance of the salary:
Balance = €42,600 - €36,800 = €5,800.
Calculate PAYE on the balance:
PAYE on €5,800 = €5,800 × 0.40 = €2,320.
Total PAYE = PAYE on first €36,800 + PAYE on balance:
Total PAYE = €7,360 + €2,320 = €9,680.
Step 2
Calculate Tax Credits
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Answer
Total Tax Credits:
Personal Tax Credit = €1,700
Employee Tax Credit = €1,700
Total Tax Credits = €1,700 + €1,700 = €3,400.
Step 3
Calculate PAYE Due
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Answer
Final PAYE Due:
PAYE Due = Total PAYE - Total Tax Credits
PAYE Due = €9,680 - €3,400 = €6,280.
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