# PRSI Employee Arrears - Who is liable to pay these?



## CJPD012 (13 Jun 2013)

In the event of an underpayment of PRSI in prior years, due to an incorrect PRSI rate, who is reponsible for paying the arrears in the *Employee's* share of the PRSI.

Is it the Employee or the Employer?


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## Brendan Burgess (13 Jun 2013)

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## Joe_90 (13 Jun 2013)

Why was the wrong class used?

Did the employee inform the employer that they had a medical card and it was subsequently removed?


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## CJPD012 (13 Jun 2013)

Employee initiially informed Employer of class. It should have been changed in subsequent years but was not. Employee was incorrectly on Class M.


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## Joe_90 (13 Jun 2013)

Was Class M the correct class. If so why?

 If the circumstances changed did the employee specifically tell the employer?  Class M is a zero rate contribution and is unusual in non related employment.

Are the employee and employer related?


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## CJPD012 (14 Jun 2013)

Employer and Employee not related. Employee informed Employer that they should be on Class M, and it was not checked or changed by employer.


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## Joe_90 (15 Jun 2013)

Joe_90 said:


> Was Class M the correct class. If so why?
> 
> If the circumstances changed did the employee specifically tell the employer?



You are unlikely to get an answer if you don't provide enough information.  Why was the employee Class M?

If the employee was well informed enough to know that they should be Class M surely they were well informed enough to know that they should then have been changed to class A.


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## deadlyduck (17 Jun 2013)

Information about the scope of various PRSI classes:

[broken link removed]



This link may be of some help re responsibility for underpayments:

[broken link removed]

A separate but key issue is to verify who is responsible for identifying the appropriate PRSI class on an ongoing basis- the fact that the employer relied upon the statement of the employee I suspect would not help the employer. 
My guess is it is the responsibility of the employer but I can't point to the relevant text that unequivocally states this to be the case.


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## Nutso (17 Jun 2013)

Was the employee initially under 16?  I would imagine that it would be up to the employee to pay the employee portion (as this should have come out of salary) and it would be up to the employer to pay the employer portion.


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## deadlyduck (17 Jun 2013)

> I would imagine that it would be up to the employee to pay the employee  portion (as this should have come out of salary) and it would be up to  the employer to pay the employer portion.



The link re underpayments states:

_"_*If the amount of PRSI contributions paid is less than the amount due, the employer is responsible for making up the deficit.*_You must deduct from the employees' earnings *at the time you pay their wages:*_


_the amount of any PRSI employment contribution due by the employee on that payment of reckonable earnings, 
*or*_
_if you cannot ascertain the exact amount, the amount you reasonably believe is due. _
_*Note:* *A contribution payable by an employee cannot be recovered by the employer other than by deduction as outlined above.* "_


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## Joe_90 (17 Jun 2013)

In Practice it is the employers responsibility for ensuring that the employee is on the Correct class.

The questions I asked the OP were to try to establish why the employee was put on Class M, the question was not answered.

If I tell you my class is M, is it fair to say the obligation is on me to inform you if my circumstances change.  

I imagine the employer will be landed with a substantial bill for both employee and employers PRSI. Hardly seems fair based on the limited information provided.


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