Wrong PRSI Class set

I’ve just been informed that I have been on the wrong PRSI class this whole time.
He says I should be on Class S, not Class A, and that I have been overpaying PRSI the whole time I have been employed by my company.
I have a bad feeling this is going to be a nightmare to correct in Bullet?
He says I now need to correct all wages and p35s! He says he can do this for me with revenue but I will probably need to update Bullet in some shape or form to reflect these changes…

  1. funzeye July 17, 2015
    Im the company director I should add.

4 answers

Peter Connor Staff July 17, 2015

If you’ve paid your P35 returns then it is going to be a pain. You’ll need to recalculate your each pay slip, and re-submit your P35l’s to revenue. It’s not the end of the world though.  
You’ll need to use our Manual Journal Entries to make the manual adjustments in Bullet. If you don’t know that, then you shouldn’t be doing it, if you do you’ll really be in a world of pain. 
M.J.Entries are the old school way of doing accounts, they’re are what we hide (incredibly well). Bullets USP is we’ve built this big layer of software that sits on top of these journals. This layer understands the accounting rules so you don’t need to, it then takes your data and manipulates the journals. 
You’ll need an accountant to do this, let me know if you want me to put you in touch with one. 
PS did you not use our PRSI wizard for finding out your PRSI Class.

  1. funzeye July 17, 2015
    Ya I would have used the wizard, for the "are you company director" question I said yes - is there any reason it would have set me as class A? Is it possible to be a company director and employee of the company and be on class A? Or should it be class S? Half hoping my accountant is wrong!
Peter Connor Staff July 17, 2015

There are lots of factors around the Classes, are you a Vicar for example! 
Go to setup another fake employee and run through the wizard again. 
He’s probably not right 🙁 

  1. funzeye July 17, 2015
    no, definitely not a vicar!
    okay, will see what it says.
  2. funzeye July 17, 2015
    Ah, okay, it should be class S - director with over 15% shares. I must not have used the wizard properly! Okay, lot's of pain in store so!
    is it possible to change over to class s now for 2015 for the rest of my wage payments or do I just need to do stick with class A and just make these manual entry changes for the rest of 2015 until 2016!?
Brendan_Brady Community Accountant - Brady Associates July 20, 2015

Hi – not sure if you’ve updated the journal entries but bear in mind that the the class S PRSI changes that you mention above won’t affect the net pay as it only relates to employers PRSI. So, to make life easier, when you amend the P35 just change the employers PRSI balance to nil and leave the rest of the balances the same. Then in bullet, create a jounral entry as follows:
Dr: Payroll taxes
Cr: Wages

  1. Peter Connor July 20, 2015
    Thanks for the update Brendan.
  2. funzeye July 20, 2015
    Thanks a million Brendan,
    So just a single entry for each in the journal, with the total amount I have removed from the past p35's Employer PRSI column. Sounds straight forward enough.

    In terms of the rest of year - I just stick with Class A in Bullet (dont think I can alter it) and maybe make another adjustment at the end of year, then change to Class S in January (assuming I can do this in Bullet)? Or is there a better way?
Brendan_Brady Community Accountant - Brady Associates July 20, 2015

The better way would be to correct it in bullet from the beginning of the year because this will update the correct P30 amounts which in turn will in turn be reflected in the bank payments. Ultimately it depends on how comfortable you are using journal entries and also the time and energy levels involved in correcting the wages.
Hope this helps

  1. funzeye July 20, 2015
    Ya that probably is the smart way to do it, but I think for me anyway I want to touch manual entries as little as possible!

    I think what I will do is make the manual entry to correct 2013 and 2014 and submit the corrected P35 for those years, then...
    Im happy enough to overpay the PRSI for rest of 2015...
    then in January make sure I put in 0 amount in the p35 for the PRSI liability....
    and make one final manual journey entry to correct 2015.
    Finally make sure I change my class to S in Bullet for 2016!
    Hopefully that'll do it.

    Probably the complicated way, but makes sense in my head anyway!

Please login or Register to Submit Answer