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

Before you start

1. Identify the correct PRSI class for each affected period.
2. Check your payroll status is Start of Period (SOP). You’ll see this at the bottom right of the window.
3. Back up your data.
4. Print the Earnings Tax & PRSI (ETP) report for the employee. Use it to find incorrect periods and calculate the correct PRSI values.

For more details on PRSI, go to Gov.ie PRSI guide.

Correct PRSI year-to-date values

1. Go to Processing, then select Employee Details.
2. Next to Surname, select Browse, then choose the employee.
3. Select the Tax / PRSI / USC tab.
4. In PRSI Code, check the code and edit if needed.
5. In Insurance Weeks, check the weeks worked. To edit, go to the ETP tab and select I need to override these values.
6. Select the ETP tab.
7. For each incorrect period, update:
   • PRSI E’e: Enter the correct employee PRSI amount
   • PRSI Code E’e: Check and edit if needed
   • PRSI E’r: Enter the correct employer PRSI amount
   • PRSI Code E’r: Check and edit if needed
   • PRSI Base: Check and edit if needed
   • Ins Wks: Check insurance weeks worked
      TIP: If an employee works any day in a week, they’re entitled to an insurance week.

8. Repeat for all affected periods.
9. Select the Pay / YTD tab.
10. Under PRSI, enter:
    • Employer Financial Yr – Total PRSI paid by your company for the employee this year.
11. Select Save.
12. In Override ETP, choose:
    • Resend later: If you need to make more changes
    • Resend now: If all changes are complete
13. Resend the payroll submission for each amended period.

Overcharged PRSI - refund the employee

Set up a refund payment

1. Go to Company/Payroll, then select Payments.
2. Select New, then set up:
   • Title: Enter a name, for example, Refund
   • Type: Select Variable amount each pay period
   • Tax: Clear the check box
   • Universal social charge: Clear the check box
   • PRSI: Select Do not apply PRSI
   • Apply ASC: Clear if applicable
3. Select Save, then Close.

Process the refund

1. Go to Processing, then select Time and Pay.
2. Under Entry mode, select Random, then choose Continue.
3. Next to Employee, select Browse, then choose the employee.
4. Find the refund payment and enter the amount in Hrs/Val.
5. Enter other pay details as normal.
6. Select Save, then Cancel.

You don’t need to refund employer PRSI. The next payroll run automatically corrects any overpayments.

Undercharged PRSI – reclaim from the employee

Set up a reclaim deduction

1. Go to Company/Payroll, then select Deductions.
2. Select New, then set up:
   • Title: Enter a name, for example, Reclaim
   • Deduction Type: Select Nett (After Tax, PRSI & USC)
   • Sub-type: Select Standard
   • Balance Type: Select Accumulate a balance
3. Select Save, then Close.

Process the reclaim

1. Go to Processing, then select Time and Pay.
2. Under Entry mode, select Random, then choose Continue.
3. Next to Employee, select Browse, then choose the employee.
4. Find the reclaim deduction and enter the amount in E’e Value.
5. Enter other pay details as normal.
6. Select Save, then Cancel.