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Overpaid in work and PRSI

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  • 22-03-2011 4:31pm
    #1
    jacknife
    Registered Users Posts: 220 ✭✭


    I got overpaid in work and I've offered to pay back a lump sum, I was told this may cause problems with my PRSI

    Can someone tell me what kind of problems this may cause

    Thanks


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    #2
    gerrycollins
    Registered Users Posts: 1,799 ✭✭✭gerrycollins


    PRSI is calculated based on a percentage of your wages but the rate used is dependent on the amount you were paid as a gross figure.

    So if your gross figure was double for example, your PRSI would not essentially be double what you would normally pay.

    The best way for this to be resolved is for your payroll people to give you a negative adjustment to your wages and this will in turn adjust your PRSI and you should not return any money just get the balance to bring your wages back on track.


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    #3
    jacknife
    Registered Users Posts: 220 ✭✭jacknife


    Thanks for that.

    The money I owe was quoted as a gross figure, do I have to pay back the gross amount or the net amount?

    I would like to have a bit of knowledge before I meet with them


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    #4
    gerrycollins
    Registered Users Posts: 1,799 ✭✭✭gerrycollins


    Considering the possible tax and PRSI difference you might encounter because of this overpayment the best option is for your employer to make the adjustment in your next payslip to accommodate this overpayment ,they can put it in as a sub, then payback any difference or they pay you the difference their payroll system will balance the books there after

    The issue is that you cannot get back any overpayment in tax or PRSI until next year and it was their mistake,I assume, that you were overpaid so they must accommodate or help you where possible.


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    #5
    jacknife
    Registered Users Posts: 220 ✭✭jacknife


    Sorry to drag this up again.

    The gross balance of what i was over paid is €15k

    I offerded to pay back €8k as a lump sum to keep my wages unadjusted

    I was told this will clear the net balance and i was told to pay back €2k per month by cheque.

    I'm very confused, I'm not from a business background, if I pay €8k is that all i've to pay back?? Does the PRSI have to be paid back, i offerded to forfit it in order to get the bill cleared

    I want to keep my wages as intact as possible


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    #6
    antoinolachtnai
    Registered Users Posts: 9,776 ✭✭✭antoinolachtnai


    How much did you actually get paid extra into your account? That is the amount you have to pay back, or offset from future payments. This will just reverse the mistake. It shouldn't have any impact on PRSI at all.


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    #7
    jacknife
    Registered Users Posts: 220 ✭✭jacknife


    antoinolachtnai wrote: »
    How much did you actually get paid extra into your account? That is the amount you have to pay back, or offset from future payments. This will just reverse the mistake. It shouldn't have any impact on PRSI at all.

    The net pay was E8k that I was over paid.

    I was overseas and took unpaid leave, some how it was not communicated to finance dept and i was paid all along and I've the money in my account and i said just take it back, but they said something about affecting my PRSI, pension

    now they are saying to pay back E2k per month by cheque.

    I'm really confused, the Gross figure is E15k, I did not think I had to pay back tax, PRSI?

    I'm worried i've to pay back the full E15k


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    #8
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    jacknife wrote: »
    I'm worried i've to pay back the full E15k
    Get in contact with a lawyer. How much do you pay tax? As in, if you paid 41% tax on the €15k, then only €8850 would have come into your bank account after tax (not any other government charges into account). This is why you should get in contact with a lawyer to ensure you are not paying for the companies f**k-up, but only what you received into your bank account.


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    #9
    jacknife
    Registered Users Posts: 220 ✭✭jacknife


    the_syco wrote: »
    Get in contact with a lawyer. How much do you pay tax? As in, if you paid 41% tax on the €15k, then only €8850 would have come into your bank account after tax (not any other government charges into account). This is why you should get in contact with a lawyer to ensure you are not paying for the companies f**k-up, but only what you received into your bank account.

    that's what i thought, I only paid back what was paid into my account.

    the guy in personnel confused me by handing me a bill for €5k gross, the lady in salaries said the €8k would clear it off


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    #10
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭LegacyUser


    you should not be out of pocket because of the companies mistake. You should tell them that you will only return the net amount received and that they should make any adjustments with the tax authorities/ pension providers themselves.

    do not repay them the full gross amount


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    #11
    Pineapple stu
    Registered Users Posts: 1,677 ✭✭✭Pineapple stu


    You should only be paying the balance from what you got and what you should have got after they have agreed it with you first in how much per week or month to pay back. You would have paid too much tax and prsi as a result of the overpayment so that may have to be claimed back from the tax office. Pay slip and letter from company may be required as proof.


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