Wage Slip

Question 1

Wage Slip

Answer 1

Wage Slip is a statement from your employer showing your gross pay (before deductions), all deductions made and your net pay (after deductions)

Question 2

Gross Pay

Answer 2

Gross Pay is the pay before all deductions

Question 3

Net Pay

Answer 3

Net Pay is gross pay minus all deductions. It is also called take-home pay

Question 4

Statutory Deductions

Answer 4

These are compulsory deductions which every worker is required to pay by law. E.g. PAYE, PRSI, USC

Question 5

Non-Statutory Deductions (Voluntary)

Answer 5

These are not compulsory deductions. Worker can choose to pay them. E.g. pension, health insurance, trade union

Question 6

Disposable Income

Answer 6

is the income that remains when all income taxes and compulsory payments have been made

Question 7

Tax Rate

Answer 7

is the percentage of tax that is levied on a person’s income. Standard rate is 20% and higher rate is 40%

Question 8

Tax Credit

Answer 8

is the amount by which a person’s annual tax bill may be reduced. E.g. Single, Widow, Married

Question 9

Standard Rate Cut Off Point (SRCOP)

Answer 9

is the amount of income that will be taxed at the standard rate of tax (20%). Any amount greater than the cut off point (€33,800) will be taxed at the higher rate (40%)

Question 10

Tax Liability

Answer 10

is the amount of income that must be paid over to the Revenue Commission. It is the responsibility of each person to make sure they pay the correct amount of taxation.

Question 11

Tax Evasion

Answer 11

this means deliberately not declaring income to the Revenue to avoid paying tax. This is illegal. E.g. paid cash for work

Question 12

Tax Avoidance

Answer 12

this means reducing the amount of tax you have to pay in a legal way. E.g. claim tax credits.