PAY RELATED SOCIAL INSURANCE

PRSI

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PRSI

Paid by Employer and EmployeeSent to collector General – monthlyAll Gross income subject to PRSIwww.welfare.ie

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Employers Must:

deducting PRSI under the correct contribution class for each employee,

deducting PRSI on all relevant payments to all employees, for example wages and salaries, bonuses, fees, overtime payments, part-time pay, benefit-in-kind (notional pay) and Christmas bonuses,

deducting the Health Levy from all relevant payments to all employees, Universal Social Charge

keeping accurate and up to date records for each employee, making PRSI payments to the Collector-General, keeping records for up to six years, properly recording all your employees' PPS Nos. on P35L, and returning your P35 by the 15 February each year.

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Benefits

Jobseeker’s Benefit Illness Benefit Maternity Benefit Adoptive Benefit Health and Safety Benefit Invalidity Pension Widow’s or Widower’s or Surviving Civil Partner's

(Contributory) Pension Guardian’s Payment (Contributory) State Pension (Contributory) State Pension (Transition) Bereavement Grant Treatment Benefit Occupational Injuries Benefits Carer’s Benefit

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PRSI Classes

Class A subdivided into 9 different classesA0, AX, AL, A1, A2, A4, A5, A6, A7, A8, A9People within Class APeople in industrial, commercial and service-type

employment who are employed under a contract of service with reckonable pay of €38 or more per week from all employments.

Civil and Public Servants recruited from 6 April 1995. http://

www.welfare.ie/EN/Publications/sw19/Documents/sw19.pdf

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PRSI Class Placement

Depends on: Public or Private sector Nature of employment (self-employment) Earnings

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Subclass Movement

An employee may move from one subclass to the other depending on pay but not between classes

Example: Class AX in week 1 and Class A1 in week 2 because of increased pay (overtime)

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Fixed Amount A fixed amount of an employees Gross Pay is PRIS free under

some classes The employee pays PRSI on earnings above these amounts Non-cumulative – cant carry over

Employees covered under Classes A, B, C, D, E and H with reckonable weekly pay of €352 or less are exempt from paying PRSI for that week. However, the employer must pay his or her share of PRSI as normal. This will not affect employees’ entitlement to benefits and pensions. Employees whose weekly pay fluctuates above and below the €352 exemption limit are not entitled to an annual refund.

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Steps to Calculate PRSI

1. check http://www.welfare.ie/EN/Publications/sw19/Pages/sw19_sect1.aspx to see what class – people the class applies to

2. Check what the pay is and what subclass – the income limit

3. Apply the Fixed Amount rule to calculate employee contribution

4. Calculate the employer contribution5. Total

Example 1• People within Class A• People in industrial, commercial and service-type employment

who are employed under a contract of service with reckonable pay of €38 or more per week from all employments.

• Civil and Public Servants recruited from 6 April 1995.

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Calculating PRSI• Catherine works in Dunnes and earns 355.00 per week• Pays Subclass AX PRSI

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Pay PRSI Rate PRSI TOTALSEE Employee Share

127.00 0% 0.00228.00 4% 9.12

Total EE 9.12ER Employer Share

355.00 4.25% 15.09TOTAL ER 15.09

TOTAL PRSI 24.21

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Example 2: Calculating PRSI• Darren works in a local shop and earns 400.00 per week• Pays Subclass AL PRSI

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Pay PRSI Rate PRSI TOTALSEE Employee Share

127.00 0% 0.00273.00 4% 10.92

Total EE 10.92ER Employer Share

400.00 10.75% 43.00TOTAL ER 43.00

TOTAL PRSI 53.92

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Example 3: Class BPeople within Class BPermanent and pensionable civil servants

recruited prior to 6 April 1995 Registered doctors and dentists employed in

the Civil Service Gardaí, recruited prior to 6 April 1995

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Calculating PRSILiz is a teacher and earns 600.00 per weekPays Subclass B1 PRSI

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Pay PRSI Rate PRSI TOTALSEE Employee Share

26.00 0% 0.00(€26.01 - €1,443)

574.00.90% 5.17

0 4% 0Total EE 5.17

ER Employer Share600 2.01% 12.06

TOTAL ER 12.06TOTAL PRSI 17.23

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Calculating PRSI• Mary works in a shop and earns 353.00 per week• Pays Subclass AX PRSI

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Pay PRSI Rate PRSI TOTALSEE Employee

Share127.00 0% 0.00

4%Total EE

ER Employer Share

353.00 4.25%TOTAL ER

TOTAL PRSI

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Calculating PRSI• David works in a college and earns 1500.00 per week• Pays Subclass B1 PRSI

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Pay PRSI Rate PRSI TOTALSEE Employee Share

26.00 0%(€26.01 - €1,443) .90%

4%Total EE

ER Employer Share2.01%

TOTAL ERTOTAL PRSI