Had a much longer reply done but the WIFI on the train dropped when I went to post it.
Start with the BIK. If its not on your P60 and should have been then you have a benefit that has not been taxed, to correct this you have to increase you income and therefore have more PAYE/PRSI/Income Levy but that is beside the point.
Start at the beginning. You say that your gross pay is understated. Well that's not really some thing that you need a payroll expert for, you sold X units and are due Y.
The total is Z and is due to you. It will be paid in 2014 so will be subject to PAYE/PRSI/USC in 2014. You can go back and allocate it to the relevant year yourself.
BIK: The BIK on VHI is the amount of the premium paid plus the Tax relief at source. You must have the payslips for these months on the basis that you know it was computed wrong. I would have thought that if you have the payslips and the net premium paid that as part of your reallocation of the income over years can wash this out.
Now the illness benefit, Your employer paid you while you were out sick and the agreement was that you would reimburse them for the illness benefit that you received. But they included the amount as a deduction from your net pay as if you were not giving it to them. Were they under an obligation to pay sick pay is it in your contract, is it paid to all staff. Given that they appear to be incapable of operating a payroll system it seems generous to pay it.
Having said all that I assume that you have recomputed the PAYE/PRSI/Income Levy and USC for each of years in question. An over complication in my view.
Dealing with Revenue on a day-to-day basis I would have thought a letter from them to your employer would have moved this along without having to go to the LRC.
Thanks Joe_90 for the comprehensive response and I do feel your pain as regards WiFi dropping as it has happened to me on many an occasion too but I do appreciate your helpful input.
The BIK is not on any of my P60's prior to 2011. You are right that it should have been and I have re-calculated the BIK for each year since 2007. However, when I was reviewing the annual GROSS income from my P60's against my December payslip for each year, none of them match, apart from the year 2010. There could be a number of reasons for this but it confuses me!?
I have completed a financial review of each year back to and including 2009. I'm no accountant or financial expert so I definitely would appreciate another pair of eyes to review my calculations in addition to having an independent expert authority give their written viewpoint on this issue which I can subsequently send on to my employer and the Revenue.
The Revenue have confirmed to me that whatever backdated amount is owed to me will be subject to the relevant deductions there were in place at the time the correct payment should have been made i.e. I shouldn't be penalised for receiving backdated pay ...yet this is exactly what my employer has done.
BIK: I arrive at the GROSS BIK amount by using the VHI's confirmed NETT BIK amount paid on my behalf, dividing by 8 and multiplying by 10.
I've confirmed on a call with the Revenue that;
- 20% of my total Social Welfare income is deducted from my total tax credit allocation for each year.
- 20% of my GROSS Medical Insurance (GROSS BIK) is added to the balance of my tax credit for each year.
The BIK was only detailed on my payslips from April 2011 onwards but I have confirmed it to be incorrect.
Illness benefit: My employer basically received a double reimbursement of my illness benefit (my employer obtained more money in Illness benefit for 26 weeks than I received in illness benefit for the whole year in 2009) i.e. I reimbursed them my illness benefit yet they deducted it from me via the payroll system. This double deduction was never mentioned to the Revenue by my employer.
My contract states that "
At the discretion of the Company you may continue to be paid your full remuneration (net of any social welfare benefit) during periods of inability to work due to illness or accident". AFAIK, my employer had little or no HR procedures in place at the time so they were under no obligation to pay sick pay to me. They processed all the illness benefit through payroll, six weeks of which were tax free, so I'm not sure why they did this as they certainly aren't known for their generosity.
Yes, I have calculated the PAYE/PRSI/Income Levy and USC for each of years in question.
Yes, I would agree that a simple letter to the Revenue from employer would have moved this along yet the errors continue. I personally wish the Revenue would audit them.
In summary, I have all my calculations of what I've overpaid and the NETT and GROSS amounts of what I'm owed along with supporting reference documentation. I think you're suggesting that I send those calculations to the Revenue... is my understanding correct? I understand how that my resolve existing errors with the payroll but I don't understand how that will help get me the money I'm owed i.e. as in Salary not received?
