Paid an employee on an incorrect pay related social insurance (PRSI) class
Description

If you pay an employee using an incorrect PRSI class for any period, you must update their year-to-date values in their record. The next time you process their pay, either refund overpayments or claim back underpayments.

Cause
Resolution

Preparation

Before you begin the process of manually correcting an employee's PRSI year to date values, you must:

  • Identify the correct PRSI class for each incorrectly processed period
  • Check that your payroll's status is Start of Period (SOP). The status indicator appears at the bottom right-hand side of your Sage Payroll window
  • Back up your data
  • Print the Earnings Tax & PRSI (ETP) report for the employee. Use it to identify the incorrect periods and manually calculate the correct employee and employer PRSI values 

For more information about PRSI, refer to the Gov.ie PRSI guide.


Correct the PRSI year to date values within the employee's record

  1. On the menu bar, click Processing then click Employee Details.
  2. Next to the Surname box, click browse and click the relevant employee.
  3. Click the Tax/PRSI/USC tab.
  4. In the PRSI Code list, check the code is correct and edit if necessary. Use the article To check or change an employee's PRSI Code.
  5. in the Insurance Weeks box, check the weeks worked to date is correct. Edit if necessary, via the ETP Tab.  TIP: You need to tick the I need to override these values check box first. 
  6. Click the ETP tab.
  7. For each of the incorrect periods, complete the following information:

You must enter or check the options stated below. The rest of the options ar not mandatory.

PRSI E'eEnter the correct amount of PRSI that the employee should have paid in this pay period.

Make a note of the difference. For example, if the existing PRSI E'e value is 40 and the correct value is 30. Enter 30, and make a note of the fact that you're reducing the employee's PRSI value by 10.

PRSI Code E'eCheck the PRSI code is correct. Edit if necessary.
PRSI E'rEnter the correct amount of PRSI that your company should have paid on behalf of the employee for this pay period.

Make a note of the difference. For example, if the existing PRSI E'r value is 40 and the correct value is 30. Enter 30, and make a note of the fact that you're reducing the employer's PRSI value by 10.

PRSI Code E'rCheck the PRSI code is correct. Edit if necessary.
PRSI BaseCheck the PRSI base code is correct. Edit if necessary.
Ins WksCheck the insurance weeks worked in this period are correct. Edit if necessary.

If an employee works for any day (Monday to Sunday) in a particular week, they’re entitled to an insurance week for that week.

7. Repeat the previous step for each period you want to amend values for.

8. Click the Pay/YTD tab.

9. Under PRSI, enter the following information:

Employee Tax YrIgnore this option.
Employer Tax YrIgnore this option.
Employer Financial YrEnter the total amount PRSI paid by your company on behalf of the employee in the current financial year.

10. When you've made all necessary changes, click Save.

11. A new window appears: Override ETP. Resend the submission for the removed periods. This window allows two options:

Resend the Payroll Submission to ROS at a later stage - If you need to make other changes, select this option.

Resend the Payroll Submission to ROS now - If all changes have been made for the relevant period, select this option.

12. You can now Resend a payroll submission for each amended pay period.


If PRSI is overcharged - To refund any overpayments back to the employee

To set up a refund payment

  1. On the menu bar, click Company/Payroll then click Payments.
  2. Click New, then set up the PRSI refund payment as follows:
    TitleEnter a name for the payment, for example, Refund.
    TypeClick Variable amount each pay period.
    TaxClear this check box.
    Universal social chargeClear this check box.
    PRSIClick Do not apply PRSI.
    Apply Additional Superannuation ContributionClear this check box, if applicable.

    This option is only available when you enable the ASC feature within your software. Use Set up your payrolls for Additional Superannuation Contribution (ASC) calculations, if applicable article.

  3. Click Save then click Close.

To process the refund payment on the employee's timesheet

  1. On the menu bar, click Processing then click Time and Pay.
  2. Under Entry mode, select Random then click Continue.
  3. Next to the Employee box, click browse and click the relevant employee.
  4. Locate the refund payment, then enter the amount you want to refund in the Hrs/Val column.
  5. Enter the rest of the employee's pay details as normal.
  6. Click Save then click Cancel.

You don't need to refund any employer PRSI. The next time you run this payroll, all overpayments are automatically corrected.


If PRSI is undercharged - To claim any underpayments back off the employee

To set up a reclaim deduction

  1. On the menu bar, click Company/Payroll then Deductions.
  2. Click New, then set up the PRSI reclaim deduction as follows:
    TitleEnter a name for the deduction, for example, Reclaim.
    Deduction TypeClick Nett (After Tax, PRSI & USC).
    Sub-typeClick Standard.
    Balance TypeClick Accumulate a balance.
  3. Click Save then Close.

To process the reclaim deduction on the employee's timesheet

  1. On the menu bar, click Processing then Time and Pay.
  2. Under Entry mode, select Random then click Continue.
  3. Next to the Employee box, click browse and click the relevant employee.
  4. Locate the reclaim deduction, then enter the amount in the E'e Value column.
  5. Enter the rest of the employee's pay details as normal.
  6. Click Save then Cancel.
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