An incorrect PRSI/NI class may be assigned to an employee due to setup errors or changes in employment status that were not updated in the system. This can lead to overpaid contributions over weeks, periods, or even years.
To resolve an incorrect PRSI/NI class, you can process a refund for the current year.
⚠️Important: To apply for the current tax year, follow the steps below. If you are addressing a previous tax year, refund PRSI for previous tax years.
System Generated NI Refund/Correction
To process a refund for the current year while changing the NI letter, you can utilize a system-generated refund by backdating the effective period of the NI class.
To do this, follow the steps below in portal.
Click Employee then highlight the relevant employee.
Beside the relevant employee, click View.
Click Tax Details then enter the following:
NI Letter
NI Letter Period Effective
For example, if the employee should have been on NI letter X since 202139, enter "X" as the NI Letter and 202139 as the NI Letter Period Effective. The system will automatically calculate the NI refund based on the pay period to which the change is backdated (monthly for monthly periods, weekly for weekly periods).
Manual NI Refund/Correction
To process a refund for the current year, you can perform a manual NI refund using the NI override codes.
Viewing NI override codes
To view the NI override codes, follow the steps below in portal.
Click Settings, under Company Parameters click Organisations.
From the Code drop-down menu, select the relevant company.
From the Select Detail drop-down menu, select Payroll Parameters.
Entering NI overrides
After viewing the NI override codes, use them to enter the NI overrides. To do this, follow the steps below in Portal.
Click Employee then highlight the relevant employee.
Beside the relevant employee, click View.
Click Timesheets Current Period.
📌Note: Do not use the regular NI pay codes when performing an override.
This will not generate a PAYE Mod correction file.
Using the NI override codes will disable the system-generated NI. If you process a refund in the current year using a manual override, ensure you apply the adjustments for both Employers (ERs) and Employees (EEs).
Previous year refund
To process a refund for the previous year, if there is a timesheet recorded for the refund, the validation report will only show the PRSI/NI paid in the current tax year.
The system does not accommodate PRSI/NI refunds for previous tax years, regardless of the transaction date recorded on the timesheet.
Refunding PRSI/NI for previous years via payroll is not advisable, as it requires extensive manual amendments that can lead to errors.