Audrey Stapleton is an employee at BAT Resources Ltd and earns a gross annual salary of €78,000 - Leaving Cert Business - Question A - 2013

To calculate the PAYE tax payable:

1. Income up to €32,800 is taxed at 20%:

   [ €32,800 \times 0.20 = €6,560 ]

2. The remainder of the income is:

   [ €80,000 - €32,800 = €47,200 ]

3. This remainder is taxed at 41%:

   [ €47,200 \times 0.41 = €19,432 ]

So the total PAYE tax payable is:

[ €6,560 + €19,432 = €25,992 ]

Audrey has the following tax credits:

1. Single Person Tax Credit: €1,650
2. PAYE Tax Credit: €1,650
3. Rent Tax Credit: €320

Total Tax Credits = €1,650 + €1,650 + €320 = €3,620

Net Tax Payable = Gross PAYE Tax - Total Tax Credits:

[ €25,992 - €3,620 = €22,372 ]

Employee's PRSI is calculated at 4% of gross income:

[ €80,000 \times 0.04 = €3,200 ]

1. On the first €100,036, USC is 2%:

   [ €100,036 \times 0.02 = €200.72 ]

2. On the next €5,890, USC is 4%:

   [ €5,890 \times 0.04 = €239.60 ]

3. The remainder is taxed at 7%:

   [ (€80,000 - €100,036 - €5,890) \text{ (if applicable)} ]

Total Deductions = Net Tax Payable + Employee’s PRSI + Universal Social Charge:

[ €22,372 + €3,200 + (€200.72 + €239.60) = €30,410.72 ]

Finally, the Net Income (Take-home Pay) is:

[ €80,000 - €30,410.72 = €49,589.28 ]

And the monthly take-home pay is:

[ \frac{€49,589.28}{12} = €4,132.44 ]