Is my payslip correct?

MikeR371

Not quite sure where to post this, hope here is ok.

I'm just checking a payslip. The calculation doesn't look correct to me. Just wondering if someone could have a quick look and see if you spot the same thing that I think is wrong? Any help much appreciated! Here are the details:

Pay for Oct-09
Tax code 686L

Salary 1,427.97
Total = 1,427.97

Tax 171.00
NI 104.72
Pension Cont. 42.84
318.56

Net Pay = 1,109.41

NOVASTAR

This is correct!
http://www.digita.com/taxcentral/home/calculators/payslipcalculator/default.asp

sammyjammy

http://www.listentotaxman.com/index.php?c=1&yr=2009&age=0&add=0&code=&pension=0&time=12&ingr=1427.97&vw[]=yr&vw[]=mth&vw[]=wk

According to the tax calculator above it looks about right given your taxcode is higher than the norm

molerat

Taxed on your pension contribution ..... where do I claim my prize.

NOVASTAR

No - the pension has not been taxed in my calculations and the deductions are stil the same as the net.

NOVASTAR

Ignore me please molerat - prize in post for you!

MikeR371

So pension contribution has been deducted from the net pay and not the gross? This is what I thought. So it's wrong!

However, since I posted the payroll bureau called me back, tell me they're not sure but it might be correct. They say that the pension company is probably adding back the tax relief when this is paid into their funds. Not sure I understand this... I'll investigate further...

molerat

MikeR371 wrote: »

So pension contribution has been deducted from the net pay and not the gross? This is what I thought. So it's wrong!

However, since I posted the payroll bureau called me back, tell me they're not sure but it might be correct. They say that the pension company is probably adding back the tax relief when this is paid into their funds. Not sure I understand this... I'll investigate further...

So your payroll don't actually understand what they are doing then. :rolleyes:

MikeR371

To be fair I only spoke to the junior, and he's put me straight now.

I just didn't realise that it is the scheme provider that is adding the tax relief on. Well you live and learn.

mountainofdebt

There's 2 ways of getting tax relief on pension contributions:

Method 1 - Pension contribution deducted from monthly salary and then you are taxed on the balance

Method 2 - You are taxed on your monthly salary and then your pension contribution is then deducted from your resultant salary. The tax relief is then obtained for you by the pension provider and applied to your pension pot.

MikeR371

I should known really, I am an accountant...