Do you get taxed on maternity pay? My employer pays 25% of the difference between my normal gross pay and the social welfare benefit. Will this be taxed?
It depends on a number of things. What time of the year you'll be going on maternity leave, what tax bracket your on, what other additional tax credits you have and how much pay you will get over the year?
What you need to calculate is what you'll earn in the calendar year and if that amount is greater than the your tax free allowance (plus whatever additional tax credits you get) then you'll pay tax on the remainder.
If you are going on ML close to end of the year, your employer probably has split your tax credits evenly over the 12 months so may have enough credits to have that part of your Maternity pay tax free.
Sorry, i have probably made things more complicated for you.
I will be going on Maternity leave in Feb so does that mean I won't be taxed?
As I understand it you will not pay tax on the €280 maternity benefit from the government. However, you will pay tax on the money from your employer. You pay 20% tax up to €36,000 per year and 41% over that.
You will also back get tax credits of €1830 per year.
The €280 you get from social welfare is not taxed. The rest of it is taxed as normal, except yhat you might go down to the lower tax bracket & taxed less on your wages from your employer (like me!) & be earning more now than before your maternity leave!
Just read about this last week. Am thrilled that I might be getting more on maternity leave than before. But honestly it really does make you wonder about the financial management of this country
[quote="red_rubies":2i7z4z0j]The €280 you get from social welfare is not taxed. The rest of it is taxed as normal, except yhat you might go down to the lower tax bracket & taxed less on your wages from your employer (like me!) & be earning more now than before your maternity leave!
I have an excel spreadsheet that will calculate the amount of pay you will get on maternity leave. Just a rough guide so might not be 100% accurate. Im assuming that you still get your PAYE credit when on ML, anyone know about that?
Just follow the link and click download.
It wont work unless you have excel.
Just enter the amount that your employer is going to pay you per week when you are on ML in the yellow box and it will work it out for you.
Also if you are married and you earn less than €36,400 in the year, then your husband might be able to apply for a tax refund!
Let me know if it works!
hey, tried this link but it opened up to just a black screen!
You must need other software to view it. Will get back to you later when I find out!