Error leads to VEC staff paying less tax

JANUARY 2009

AN administrative error means hundreds of Louth VEC workers have money taken off them at Christmas because they underpay tax.

Internal VEC documents confirm that due to a payroll error, around 750 staff were underpaying tax for six months of last year.

The mistake happens when the VEC changes from bi-monthly to fortnightly pay in May 2008. Tax credits and cut-off limits aren’t evenly allocated by the payroll software system and workers underpay tax.

The error only comes to light when the payroll run is completed on 25 November, according to an internal VEC memo.

According to a VEC source, some workers are ‘ left with no money for Christmas’.

The source claims, ‘Louth VEC took money off employees just before Christmas because management made a mess of taking the tax from them.

‘ This left a lot of people who work for Louth VEC with no money for Christmas. They have taken the money without people’s permission and just sent a note with the payslips when sending them out … no prior notice.’

VEC board chairman Cllr Oliver Tully says he is only aware of the problem ‘after the fact’, and he doesn’t know how much money people lose as some work full-time and others only do a couple of hours a week.

VEC chief Eugene Winters says in a statement: ‘Regarding the staff matter, it is not proper or appropriate that I respond to anonymous statements concerning staffing issues, other than to say we value, enjoy and nurture excellent relationships with all our staff.’