It is not yet known how many people may be entitled to claim for overcharging of PRSI, however 900,000 people earned below the €26,000 threshold in 2010!
The overcharging is due to the way the health levy element of social insurance was applied. If you earned less than €26,000 you were not liable to pay the levy. However, if you earned more than €500 a week the levy was automatically deducted from your pay. This means that they are due money back with an average refund in the sum of €400.
The Department of Social Protection insisted this is not an error and it said the system was set up to deduct PRSI on a weekly basis and workers could later apply to get the money refunded.
There are situations where you may be due a refund of a portion of the PRSI for 2008-2010 called the Health Levy which are :-
Medical Card Holders:
If you earned over €500 in any week in years 2008-2010 and your payroll did not know you had a Medical Card, you will be due a Health Levy Refund.
Annual Threshold Exemption:
If you earned over €500 in any week in years 2008-2010 you will have paid Health Levy. But if your annual gross pay was less than €26,000 for years 2008-2010, then you will be due a refund of the health levy paid in those weeks.
Less commonly, PRSI or Health Levy Refunds may also be due in some other situations such as:-
- If you were paying maintenance to a spouse or ex partner
- If you were receiving full salary whilst receiving maternity or illness/disability benefit
- If you made pension contributions directly to a pension provider i.e. not deducted through your payroll
- If you were receiving the one parent family payment or survivors pension
- If you were over 70
The refund is not automatic therefore you will need to check your payslisp/P60s for 2008-2010 then contact Jigsaw Financial Solutions today for a FREE review and calculation. Contact Lorraine on 087 2608988 or firstname.lastname@example.org