First salary calculation pls

muffinsugar

Hello

sorry i had to post this in a new thread.

I just started a new role on 25th feb (4 days to the end of the month) and ive been told employees are paid every 24th of the month which means my first pay will be 24th of March
(so this means i will be paid a week in aadvance for 24th march - 31st march.

Annual salary is £32k which works up to about £2667 (£2095 after tax) a month.

what i would like to calculate is how much extra would i get paid for the 25th to 28th feb (after tax).. so in essence what i would get in addition to the £2095 a month after tax .. for the 4 days extra in february

Do i work by daily rate or?? not sure how thi will work out

thanks in advance

[Deleted User]

Hi,


you could try using this, your next wage will be in the new tax year 2019/20.

muffinsugar

Hi nothing in the reply you posted? maybe an error

my first wage would still be in the current tax year which will eb 24th March

[Deleted User]

Hi,


did you click on the link, works for me.


Edit: you said you were getting £2095 first wage, so I thought you meant the next month.

muffinsugar

thank you

but it just gives me the monthly rate which i already know. would like to know how to calculate teh extra 4 days i have worked for plus the monthly rate..so how do i get the daily rate to know what i would get for the 4 days

thanks

Dazed_and_confused

No one on here can answer that.

Each employer will have their own menthol for calculating your earnings and you need to understand that first.

You really need to ask your employer what your taxable pay will be on your March payslip. Once you know that you can work out the tax.

And I presume your £2095 is after tax and national insurance as it is too low for just tax (assuming the emergency tax code is being used).

[Deleted User]

Hi,


well your daily rate is £32000/365 =(£87.67 x 4), less tax and NI.


Edit: I would expect you to be paid the 'monthly' rate every month, they wont adjust wage for 28/29/30 or 31 day months.


Edit: Your 4 extra days will 1/7th of your first pay (roughly).

badmemory

although just to set the cat among the pigeons - some employers count the daily rate as whatever/260 if the standard is a 5 day week. You need to check your contract of employment, it's the only way to be sure. However, if you are banking/budgeting on the money due if I were you I would base it on 366 days (longest re leap year) & just be happy if it comes in higher than that.

Mr.Saver

Assuming the best case scenario, you are getting paid at a [STRIKE]daily[/STRIKE]monthly rate calculated by dividing your annual salary by number of [STRIKE]working days[/STRIKE]months in the calendar year, and for each month your daily rate is calculated by dividing the monthly rate by number of working days in that month.

For £32k annual salary, your [STRIKE]daily[/STRIKE]monthly rate [STRIKE]in the 2019 calendar year[/STRIKE] is £32k / [STRIKE]253 working days[/STRIKE]12 months = ~[STRIKE]£126.4822 per working day[/STRIKE]£2,666.67 per month.

[STRIKE]Between 25 Feb and 31 Mar there is 35 working days, so you will get £126.4822 per working day * 35 working days = ~£4,426.88 before tax and NI deductions[/STRIKE]

There is 28 days in February 2019, of which 20 working days and 8 weekend days. Therefore your daily rate in this month is £2,666.67 / 20 days = £133.33 per day. For the 4 extra days between 25 and 28 Feb, you will get £133.33 * 4 = £533.32. Add this to your March pay, you will get £2,666.67 + £533.32 = £3,199.99 before tax and NI deductions

If we assuming the best case scenario again - you don't pay pension contributions, you are above the state pension age (so don't pay NIC), and don't have any other income in this tax year (so you don't need to pay income tax for it), you can have all of the [STRIKE]£4,426.88[/STRIKE]£3,199.99 in your bank account by the end of March.

But realistically, you will likely need to pay NIC and income tax, and you may also need to contribute to the workplace pension.

Because this is your first pay, the following rule apply:

3.1.5 Working out National Insurance contributions when you first pay an employee

When you first pay an employee, you must work out National Insurance contributions based on what will be the normal earnings period for the employment using the contribution rates and limits current at the actual time of payment.

......

If the interval between an employee starting work and the first payday spans 2 or more earnings periods, and each period is in the same tax year, work out National Insurance contributions on the amounts due for each of those earnings periods separately using the normal earnings period.

Therefore you only need to pay NIC on the £2666.67 part, not the £533.32 part which is below the PT.

For NIC category letter A (the most common one) you will need to pay [STRIKE]£390.60[/STRIKE] [STRIKE]£299.76[/STRIKE] £235.76 for NI.

The income tax is harder to predict, because it depends on the amount of tax you've already paid in this tax year and all other taxable income you've had outside this job.

Edit: found a better best case scenario, post edited to reflect that.

Edit 2: I made a mistake and counted 35 working days between 25 Feb and 31 Mar, but that was wrong. That's 35 calendar days, 25 working days. Therefore my previous "best case scenario" was the best.

Edit 3: a NIC rule apply to new employee's first pay could reduce the NIC.

muffinsugar

Wow

thanks a lot for teh detailed reply. I shouldnt eb paying income tax this year as my earnings til date are 3300 (was on SMP).

However, because i just started a new job this month and didnt give a p45, (clicked B on the new starter checklist), it looks like im still going to get taxed on a Month1 basis, so hoping to recover that tax back at the end of the tax year.

£390 seems a lot for NIC , wow

chrisbur

Mr.Saver wrote: »

For £32k annual salary, your daily rate in the 2019 calendar year is £32k / 253 working days = ~£126.4822 per working day

Between 25 Feb and 31 Mar there is 35 working days, so you will get £126.4822 per working day * 35 working days = ~£4,426.88 before tax and NI deductions

No there are 25 working days between 25 Feb and 31 March (35 calendar days) so assuming 260 working days in the year ( far more likely to go for this than 253 the actual average number is nearer 261) you get £123.08 per day times 25 = £3077.00.
Though your employer might use a different method and come to a slightly different answer.
If this was processed as one pay period the NI would be £285.00
Strictly speaking as this payment covers two pay periods it should be done as a separate calculation for each pay period in this case coming out at something like £236.00. However if your employer decides to do it as one pay period probably not a good idea to make a fuss about it as a new starter.