Employee Salary - Gross v Net Computational Anomaly
Based on the applied PRSI and USC thresholds to an employee’s Gross Pay, the program identifies where possible changes to the Gross Pay would result in a more beneficial Net Pay to the employee, i.e. where a reduction in Gross pay will result in an increase in Net Pay.
The anomaly is a result of an increase in Gross Pay being so marginal that it forces the employee’s salary into a higher threshold of PRSI and / or USC, not only for the increase, but the entire Gross Pay.
The program will highlight such computational anomalies by employee to the payroll user.
A calculation screen will detail a computational comparison between the current computation and the computation that would pertain if the Gross Pay was reduced to result in a lower PRSI and / or USC threshold.
Due to 2011 and 2012 amendments to PRSI pension relief, the Gross Pay prompted within this computational anomaly refers to the "Taxable Gross Pay" after Pension Deductions.
You may wish to print out this screen and send it to your Accountant / Tax Advisor for confirmation.
If you have any queries in relation to this recalculation you should consult your Accountant / Tax Advisor.
Please note: The identification of this anomaly by the payroll program is merely an information aid to the user. Any amendments made to an employee’s salary is the responsibility of the Employer.
PRSI Class B, C, D and H anomalies are ignored.