(a) If you discover you have overpaid PRSI within the same tax year as you made it, you should refund to your employee the amount you over-deducted from their earnings. In turn, you should recover this amount by reducing the PRSI contribution you owe for the next month in the same tax year.
If this reduction isn't enough to recover the overpayment, at the end of the year apply for a refund, stating the exact amount involved, to
Gandon House, Amiens Street, Dublin 1
Telephone: (01) 673 2586
The employer must not seek to recover the amount of an overpayment from PRSI contributions due in the next income tax year. Also, any PRSI refund which the employer is required to make should not, under any circumstances, be deducted from income tax.
(b) If you discover the error at the end of the income tax year in which the overpayment occurred, or later, you may claim for a refund from PRSI Refunds. The following cases are examples of when a PRSI refund may be due:
- If the error occurred as a result of
PRSI contributions being paid on earnings in excess of the ceiling from a single employment or from consecutive employments. [The Health Levy may be payable in
excess of the ceiling (see current leaflet
SW 14 for details).]
- You can claim a refund if the error has resulted from a mistake in calculating the percentage of earnings or from applying an incorrect percentage rate to a particular class.
- You can claim if your employee paid Class K contributions when the employee was not liable for such a payment.
The above may apply to a person whose earnings were below the levy threshold, or an occupational pensioner who held a current medical card or who was getting a Social Welfare Widow's/Widower's Pension, One-Parent Family Payment, or a Widow's/Widower's Pension under the social security legislation of a country covered by E.C. Regulations. In this case the contribution will be refunded in full to the employee - there is no employer contribution under Class K.
- You can claim a refund of the employee's share of the PRSI contribution if an employee's total earnings from
two or more concurrent jobs exceeded the ceiling for the income tax year.
- If you deducted PRSI contributions at a contribution class rate higher than appropriate to an employment (for example Class A instead of Class J for an employee over age 66).
- If you deducted levies from an employee who held a medical card or who got a payment such as Widow's or Widower's Pension or One-Parent Family Payment or a Widow's or Widower's Pension acquired under the social security legislation of another country covered by E.C. Regulations.
In such cases you should apply for a refund of contributions paid in error at the end of the contribution year in which you paid them.
PRSI Refunds Section at the address in
If an employee is due a refund of the Health Levy (and the Employment and Training Levy, abolished from 6 April 1999), as a result of having a medical card
before 6 April 1994, you must refund the levies, as you were liable for the payment of these levies in this instance. In such cases, you should refund the amount over-deducted from the employee's earnings, from the first week to which the medical card applies.
Since 6 April 1994, the employer is no longer liable for the Health Levy for an employee with a medical card.
PRSI REFUNDS IN RESPECT OF PENSION CONTRIBUTIONS
The office of the Revenue Commissioners is dealing with PRSI refunds in respect of pension contributions. Refunds are due where pension contributions (e.g. PRSA, RAC and AVC) are made
other than through a scheme provided by an employer. Prior to making a claim for a pension PRSI refund, an application for a refund of tax on the pension contribution must be made to the applicant's tax district at the end of the tax year. Claims for refunds of PRSI in respect of pension contributions should be made in writing and a copy of the P60 for the tax year to which the claim relates should be sent to:
Customer Service Section
Office of the Collector-General
Sarsfield House, Limerick
LoCall 1890 203 070 (from within the Republic of Ireland only) Fax: 061 48873
PRSI REFUNDS IN RESPECT OF MAINTENANCE CONTRIBUTIONS
An employee who makes a maintenance payment to a separated or divorced spouse under a legally enforceable agreement may claim a refund of PRSI in respect of that payment. The social insurance portion is only refundable from year 2000/01 together with levies. From 1994/95 to 1999/2000 only levies were refundable on maintenance contributions.Applications for refunds should be made to:
PRSI Refunds Section
Gandon House, Amiens Street, Dublin 1
Phone No. (01) 673 2586
Fax: (01) 673 2460