I quote from the “Income Levy - Frequently Asked Questions” document as issued by Revenue on 30 th November 2009. Please click here to view the full document.

“2.23 What if I have overpaid the income levy? How can I claim a refund?

The income levy is calculated on a pay period by pay period basis. Where the income levy has been applied for particular pay period(s) throughout the year but you are ultimately liable at either a lower rate or are exempt because you have not exceeded the thresholds at the end of the year, you will have overpaid the income levy. In this situation you will be due a refund of some or all of any income levy paid. Where you have been in continuous employment with an employer throughout the year in question (for the full 52 weeks/12 months), your employer may refund any overpayment of income levy deducted at the end of the year. Where you have not been in continuous employment with an employer throughout the year in question, Revenue, rather than the employer, will deal with any refund of income levy due at the end of the year.”

I quote from the “Pension Related Deduction Guidelines” document as issued by the Department of Finance on 3 rd March 2009.

“The Pension Related Deduction is calculated on a Week One basis (similar to PRSI and the Income Levy) and each payroll period is calculated independently without reference to any previous periods. It is NOT Cumulative . This will be reviewed later in 2009. See Appendix A for a detailed breakdown of example thresholds for every payroll frequency for 44 week 2009 and 52 week 2010. Where employees join or leave part way through a pay period, these thresholds are not to be reduced. It is recognized that this can lead to anomalies, i.e. overcharges and undercharges in certain circumstances, such as the following:”

“People on the same annual gross pay whose pay fluctuates from week to week will pay different levels of Pension Related Deduction.”

“To address all these situations, a “balancing mechanism” is to be used, similar to the Income Levy, which will address any underpayments or overpayments by calculating the Pension Related Deduction due on the gross pay subject to the Pension Related Deduction and comparing it the Pension Related Deduction actually paid. This will be done at year end (Week 52 or Week 53 as appropriate) or when an employee leaves. Further details of this mechanism will be included in the Regulations to be published shortly. The balancing mechanism need not be included in the software at this stage, as the same, or a very similar, mechanism will be used for the Income Levy. Further discussions will be required with Revenue to elucidate all necessary details before this can be specified.”

I quote from the Social Welfare and pensions Act 2009.

Adjustment to take account of aggregate calculations

7C.—Notwithstanding sections 5(1A), 5(1B), 6(1A) and 6(1B), calculations made in accordance with those sections may be adjusted by an employer of an employed contributor to take account of aggregate reckonable earnings or aggregate reckonable emoluments, or both aggregate reckonable earnings and aggregate reckonable emoluments as the case may be, paid in the contribution year and the payment of the health contribution may be made in accordance with the figure achieved as a result of the calculation so adjusted.

Repayment of contributions

7D.—(1) Where an individual's health contribution was calculated in accordance with section 5 or 6 in respect of the contribution year 2009 and where, as a result of that calculation, the individual paid in respect of that year, an amount in excess of the rates specified in the second column in the table referred to in section 4A(1) in respect of the parts of reckonable income specified in the first column of that table, the individual shall be repaid that excess amount.