Health Levy / PRSI Query

C

Charisteas

Guest
My apologies for yet another Health Levy topic, I did search and read through a lot of them, but couldn't find the answer I need yet.

In 2010, I earned almost 27,000 and I was placed on the PRSI class A1 for the full year of 2010, thus paying almost 2000 in PRSI/Health Levy.

However, my salary would often fluctuate from month-to-month, so sometimes my monthly gross would be 1800, other times it could be 2300.

Now, according the welfare website, the PRSI monthly band for class A1 in 2010 was 2167.00 per month.

So, after sifting through all my monthly payslips for 2010, it seems that I was only over the A1 threshold for about 6 months of the year, and should have been in class AL for the other 6 months.

Do you think I have a claim to make for 6 months worth of Health Levy for 2010?
 
Hi Charisteas
The health levy (in 2010) was payable at a rate of 4% on your employment income if you earned more than €26,000 in the year. If you earned less than this, no Health Levy will be due (as stated by you, you seem to have been above €26,000 for the year so the health levy was due on your full salary for 2010). The difference betweeen the A1 and AL PRSI class is that the health levy is payable under the A1 class but not payable under the AL class. At the end of the year if your salary (assuming this is your only income source) was less than €26,000, you can make a claim to get a refund of your health levy, if your income was more there is no refund and in fact there may be additional health levy due by you!

I hope this helps. Any more questions please let me know.
 
Thanks for the reply cdaly.

Your saying that The Health Tax was only calculated on a yearly basis of a salary greater than 26000.

So if I submitted an application for any refund, they would only be interested in my yearly wage, thus making any month-by-month earnings (even those under the threshold) irrelevant?

If so, then I wonder why they would publish a monthly PRSI band threshold figure on their website (2167.00 per month).

I'm glad that the government have abolished this for 2011. Going by that 26000 per year figure, it looks like a person who earned 26000 actually took home less net pay than a person who earned 25000!
 
Hi Charisteas,
In reply to your query, yes the health levy was due if you earned even 1 cent more than €26,000 for the year, and it will be taxed on all your income rather than the amounts earned over €26,000. The minumum health levy due for 2010 on a salary of €26,000.01 would be €1,040 so you were right by saying if you earned €25,000 you would take home more pay than if you were on €26,000.01.

As your salary was over €26,000 you will not get a refund of the health levy so maybe you should leave things as they are!
 
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