Presentation Transcript

1. Income

2. Income • Is money you receive. • Or a benefit in kind you receive. • It can be regular or additional.

3. Benefit in Kind • Is non money income. • Eg. • Company car • Vouchers for fuel or butter • Gift vouchers….

4. Regular Income • Is what you are sure of receiving. • You can plan to spend it. • Wages • Child benefit….

5. Additional Income • Is what you are not sure you will receive. • You cannot plan to spend it • Bonus • Present….

6. Pocket Money • A small weekly sum of money given to children as an allowance. • Is this additional or regular income??

7. Wages • Is regular income for hours worked or number of goods produced. • Eg. Builder

8. Salary • Is regular income received for doing a job no matter how many hours you spend at it. • Eg. Teacher

9. Tax Refund • Money back from the government when too much tax has been paid. • Is this additional or regular income??

10. Family Income Support(FIS) • Received by families on a low income.

11. Child Benefit • Regular income received once a month from the government if you have children under the age of 16.

12. Social Welfare • Regular income receive weekly from the government if you are unable to work. • Eg. Job seekers allowance

13. Pension • Regular income received from the government or a pension fund when you retire.

14. Rental Income • Regular income received when you let out your house or a room in your house.

15. Interest on Savings • Addition income received when you invest money in the bank.

16. Dividends on Shares • Additional income received when you have own part of a company and you receive a share of the profits.

17. Inheritance • Additional income received from a relative or friend when they die.

18. Gift • Additional income received from a relative, friend or employer. • It may be cash or a benefit in kind.

19. Types of Employee Income • Time Rate: • Getting paid per hours worked. 2. Piece Rate: • Getting paid per number of products produced.

20. 4. Commission • Additional income calculated as a percentage of sales. • Eg. • Mary earns 5% commission on every euro worth of books she sells. • How much does she earn for selling 200 euro worth?

21. 200 X 5 100 10 euro

22. 5. Bonus • Additional income given for reaching certain targets.

23. 6. Basic Wage • Regular weekly payment for normal hours worked. • Eg. €10 x 30 hrs = €300

24. 7. Overtime • Additional payment for working over your normal hours. Eg. • Time and a half. €10 x 1.5 = €15/hr • Double time. €10 x 2 = €20/hr • Treble time. €10 x 3 = €30/hr

25. Example • Mary receives €20/hr for a normal 30 hour week and double time for overtime. • How much does she earn for a 32 hour week?

26. Answer • Basic Pay= €30 x 20 = €600 • Overtime = 2 x (€20 x 2) = € 80 • Total €680

27. Gross Wage • Basic Wage + Overtime before deductions

28. Net Wage (Take Home Pay) • Basic pay + overtime after deductions

29. Voluntary Deductions • You have a choice if you want to take these out of your wages. • Savings • Pension (Superannuation) • VHI • Trade Union Fees

30. Statutory Deductions • You do not have a choice these must be taken from your wages. • PAYE: Pay as You Earn (Tax) • PRSI: Pay Related Social Insurance

31. Consequential benefits of PAYE • Paying tax entitles you to the, • Use of national roads • Use of a public ward in the hospital • Education in schools

32. Consequential benefits of PRSI • Paying PRSI entitles you to, • Maternity Benefit • Unemployment Benefit • Sickness Benefit • Old Age Pension