Employer deducting salary protection premium, but not paying it over

desparate

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Hi I work in a private section 39 org which is HSE funded. There are now cash flow issues with org….bills not paid, wages delayed. Today received a letter from cornmarket our salary protection company to say premiums haven’t been paid ( as did my colleagues). If salary protection is deducted at source….is this a misappropriation of my money, theft???? Worried about repercussions if I ever need salary protection.
 
Yup, this is serious, not paying the premium can void the whole premium and cornmarket may require you to start again on a higher cost premium. So you may suffer in BIK.

But the main think it looks as if your employer has run out of cash and has probably not paid revenue PRSI etc either. Armed with the late payment of wages, the non payment of benifits such as insurance you need to collectively tackle this with your employer.

At the least they should be reducing their staff through redundancy so that there is sufficient cash flow for the remaining staff wages. - a very grim position for everyone. But you cannot have the CFO deciding which bits of staff
Benefit's to pay this month.
 
Yup, this is serious, not paying the premium can void the whole premium and cornmarket may require you to start again on a higher cost premium. So you may suffer in BIK.

But the main think it looks as if your employer has run out of cash and has probably not paid revenue PRSI etc either. Armed with the late payment of wages, the non payment of benifits such as insurance you need to collectively tackle this with your employer.

At the least they should be reducing their staff through redundancy so that there is sufficient cash flow for the remaining staff wages. - a very grim position for everyone. But you cannot have the CFO deciding which bits of staff
Benefit's to pay this month.
Thank you for reply. Would they not have to pay prsi as part of our taxes…could they be withholding this too as a means of sorting cash flow? Company employs about 250 people. It’s been a difficult few months as they fight for further funding from HSE
 
Yeah, they are probably withholding payments from revenue too, you would not see it in your payslip, but check in revenue on line, you should be able to see the returns that your employer makes every month. Check to see is it up to date.
 
1. Keep all your records (payslips/ P60s etc) of deductions for tax, prsi, usc.

2. Write to Revenue & copy your paper work, confirm these deductions were made & you are concerned they may not have been remitted. Even if Revenue won't disclose information to you; you can disclose to them.

3. Look for another job.
 
Just went into my revenue not savvy in this area. But I work part time & my husband fultime. In the year to date he has earned 3 times what I have earned - yet I have paid more PRSI? Any reason for this? He is a sec teacher & pays a dif class PRSI. Is that the reason he pays less.
 
Public servants hired pre April 1995 typically pay PRSI at class D, which is 0.9%, compared to the normal class A rate of 4%.
 
Hi I work in a private section 39 org which is HSE funded. There are now cash flow issues with org….bills not paid, wages delayed. Today received a letter from cornmarket our salary protection company to say premiums haven’t been paid ( as did my colleagues). If salary protection is deducted at source….is this a misappropriation of my money, theft???? Worried about repercussions if I ever need salary protection.
Any chance a mix up has happened here or a payment not allocated correctly by the provider? Years ago I sent a cheque to an income protection provider to cover a shortfall from a standing order less than half a mile from our office to theirs. It was returned to us about 4 months later saying company no longer at this address ,(even though they still are) after contacting the provider it turned out they thought our account had been over paid. They provided a list of payments which contained two Bank transfers which hadn't come from us but a company with a slightly similar name.
 
Any chance a mix up has happened here or a payment not allocated correctly by the provider? Years ago I sent a cheque to an income protection provider to cover a shortfall from a standing order less than half a mile from our office to theirs. It was returned to us about 4 months later saying company no longer at this address ,(even though they still are) after contacting the provider it turned out they thought our account had been over paid. They provided a list of payments which contained two Bank transfers which hadn't come from us but a company with a slightly similar name.
Hi no it’s a purposeful withholding of money for cash flow issues
 
Hi desparate,

It would seem that your employer is making a deduction from your salary, but not passing it on to the service provider (Cornmarket).

This may well be a breach of the 1991 Payment of Wages Act. You may wish to make a complaint to the Workplace Relations Commission, who may be willing to send an Inspector into your employer. This in turn could lead to a "Compliance Notice" being issued to your employer.
 
And the employer going out of business - be careful what you wish for

But it doesn't look good either way :-(
 
Hi desparate,

It would seem that your employer is making a deduction from your salary, but not passing it on to the service provider (Cornmarket).

This may well be a breach of the 1991 Payment of Wages Act. You may wish to make a complaint to the Workplace Relations Commission, who may be willing to send an Inspector into your employer. This in turn could lead to a "Compliance Notice" being issued to your employer.


+1 to this observation.

It’s an illegal deduction of salary if it’s not being passed on.
 
And the employer going out of business - be careful what you wish for

But it doesn't look good either way :-(
The employer is funded by the HSE. So presumably if they close the HSE will have to take up their role directly. St John Of God successfully called the HSE's lack of funding bluff a few weeks ago. The money tree magically provided.
 
The employer is funded by the HSE. So presumably if they close the HSE will have to take up their role directly. St John Of God successfully called the HSE's lack of funding bluff a few weeks ago. The money tree magically provided.
This could be a deliberate action on the employer's part to force the HSE to get their act together.
 
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