P35 - prsi

T

The Bishop

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I am doing up a P35 - In reality what happens is that the employee gets paid into their hand and the employer looks after the tax, PRSI etc.
Initially in 2010 the employee was earning over the €500 per week threshold and was therefore paying the extra 4% (i.e. Basic - 127 * 4% + Basic * 4%) However, as the year went on their basic was reduced and eventually towards the end of the year they were on a 3 day Week. When making the P35 Return is it possible to put in for a refund of the extra 4% that was paid when the employee was earning over €500 as their annual salary was less than €26,000 for the year
 
There is no refund as PRSI is calculated on a week-by-week basis, NOT on a cumulative basis

So if in Week 1 you earn €1,000 and Week 2 you earn €0 you don't get the PRSI from week 1 back
 
Many thanks for your prompt response

Just wondering if the PRSI is 4% and the other 4% is Health Levy?
 
Thanks Gervan for that - thought there was something about it - BUT back to my situation of doing the P35 Return of where the Employee gets their payment and the Employer pays Revenue on top - Can the employer should payment of the Health Levy when wages are over €500 PW and do a refund at the end as the annual wage is less than 26K and therefore not pay Revenue and therefore not have to look for a refund - hope you can understand what I'm trying say. Payments have been made by Employer to Revene during the year but the P35 shows what is due for the Year - deducts what has been paid - leaving a balance due to Revenue
 
Ah, I see. No, I think your employer has to pay the Health Levy, and the employee reclaim it. Although you might think you know the employee's annual income is under €26,000, you cannot be sure what other sources of income he has.
 
Perfect - thanks for clearing that up for me. One last question - I'm guessing that although it is called a Health Levy it is returned as PRSI for the P35 Return?
 
daenisyelnah said:
...the employee gets paid into their hand ...the employee was earning over the €500 per week ...
Click to expand...

If the employee was receiving close to €500 into their hands then it is likely they exceeded the threshold.
The €26,000 threshold is Gross Salary.
You need to gross up what the employee received to get the Gross Salary on which PAYE, PRSI, Levy etc must be calculated. (Good luck with that computation! :))
 
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