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How to calculate a set days pay?

JustAnotherSaver
Posts: 6,709 Forumite


A friend of mine has a new job as a driver. In his old job he was paid hourly & then double time for overtime - real simple to work out.
In this new job he is on some sort of bonus scheme. He gets paid a basic wage & then to bump his pay he gets a percentage of whatever the wagon earns. Though they get no itemisation, so they don't know what it earns, but that's something else......
He earned over 4 weeks...
£1,080 as basic pay (so £270 per week).
He was told that his vehicle earning percentage gave him...
£220 wk1
£277 wk2
£205 wk3
£235 wk4
And he worked a Saturday morning twice in that 4 week period, 5 hours each time, which is listed as £123 (so £61.50 per Saturday).
So his gross earnings was £2,140
His tax deductions is listed as £235.20
His Nat Ins deductions is listed as £176.16.
He's a basic rate tax payer.
What he's wanting to know (and so am i actually now he's asked it) is how does he work out what a Saturday is worth to him in the pocket. Once tax & national insurance goes, what is the Saturday then worth to him?
How do you work it out?
Thanks.
In this new job he is on some sort of bonus scheme. He gets paid a basic wage & then to bump his pay he gets a percentage of whatever the wagon earns. Though they get no itemisation, so they don't know what it earns, but that's something else......
He earned over 4 weeks...
£1,080 as basic pay (so £270 per week).
He was told that his vehicle earning percentage gave him...
£220 wk1
£277 wk2
£205 wk3
£235 wk4
And he worked a Saturday morning twice in that 4 week period, 5 hours each time, which is listed as £123 (so £61.50 per Saturday).
So his gross earnings was £2,140
His tax deductions is listed as £235.20
His Nat Ins deductions is listed as £176.16.
He's a basic rate tax payer.
What he's wanting to know (and so am i actually now he's asked it) is how does he work out what a Saturday is worth to him in the pocket. Once tax & national insurance goes, what is the Saturday then worth to him?
How do you work it out?
Thanks.
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Comments
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There's an online tax calculator. Pop 'tax calculator' into google and listen to the taxman
It's very good and it will let him know his take home pay.
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I'm obviously inputting the wrong thing.
http://www.moneysavingexpert.com/tax-calculator/
I put in £123 gross, because that's what he earned for the Saturday, but as expected it just says he takes home £133 because he didn't earn enough to be taxed.
Yet if i put in his gross (£2,140) it'll just tell me what his payslip tells me.
I guess i'm being dim here, but can you point me in the right direction please? How do i tailor it so it tells me what his Saturday was worth in the pocket?0 -
He'll pay tax at his marginal rate on the Saturday earnings, and NI at the standard rate:
Tax £61.50 x 20% = £12.30
NI £61.50 x 12% (probably) = £7.38
Take home £61.50 - £12.30 - £7.38 = £41.820 -
He's on standard rate tax so he will loose about a third to deductions so he will get just over £40. We don't know what the percentage rate of profit is for a Saturday, he will loose that too.0
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Thanks for that.
Out of interest, why do you say 12% (probably)? I'd like to know that one for myself too. I've often wondered.
I think he's being unreasonable with what he's expecting to be honest. I reckon up he's probably on about £12 per hour for the Saturday. It's not the best but certainly not the worst for the job.0 -
Not sure if you've resolved this now, or if the links above are similar but I always use this site because you can get a day/hour/month/year rate pre and post tax.
http://www.thesalarycalculator.co.uk/It only takes a second to say 'Thanks, you just saved me a few quid!'
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£270pw for a 5day week is £54 per day what hours a standard day?0
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JustAnotherSaver wrote: »Thanks for that.
Out of interest, why do you say 12% (probably)? I'd like to know that one for myself too. I've often wondered.
Because I don't know his NI status. Most people will pay Class 1 Category A contributions which is 12% on earnings between £155 and £827 per week, but there are various other rates that could apply.
https://www.gov.uk/national-insurance-rates-letters/contribution-rates0 -
JustAnotherSaver wrote: »I'm obviously inputting the wrong thing.
http://www.moneysavingexpert.com/tax-calculator/
I put in £123 gross, because that's what he earned for the Saturday, but as expected it just says he takes home £133 because he didn't earn enough to be taxed.
Yet if i put in his gross (£2,140) it'll just tell me what his payslip tells me.
I guess i'm being dim here, but can you point me in the right direction please? How do i tailor it so it tells me what his Saturday was worth in the pocket?
The easy way is to put in 2140 - and get out what the payslip says. Then put in what he would get without the Saturdays (2140-123 = 2017) and see how much less it is.
But the Saturdays may also be increasing his vehicle percentage so he may actually be getting more if it is only his basic pay that makes the £123. Were the saturdays in weeks 2 and 4 when he got the higher vehicle percentages?But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0
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