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PRSI

Pay Related Social Insurance is mandatory.

EMPLOYEES' PRSI

Pay Related Social Insurance (PRSI) is payable by employers, employees and self employed persons. on earnings. From 1st January 2004 earnings are calculated including benefits in kind received.

EMPLOYEE PRSI CONTRIBUTIONS

In general, everyone between 16 and 66 years of age, who is in insurable employment, must pay PRSI. Insurable employment means employment in Ireland under a contract of service.

Employees (and their employers) pay PRSI on the employees salary after the deduction of any contributions to an approved Superannuation scheme.

The normal rate at which contributions are made is Class A1.

PRSI is not paid on occupational pensions. If you are an employee, no PRSI will be payable on unearned income, such as dividends or rents, however, these will be subject to the Health Contribution Levy (2%).

The contributions from 1st March 2002 are:

CLASS A1

  • Employer
    10.75% on all income over €356 per week (no upper limit)*
    8.5% If income is €356 per week or less.

  • Employee
    PRSI 4% (upper limit removed for 2003) (2% on income between €356 and €400 per week).
    Employee Health Levy 2% on gross income over €356 per week**

* Includes training fund levy of 0.7%.

** Employees earning €356 or less per week are exempt from Health Levy.In any week in which an employee is subject to full rate PRSI the first €127 of weekly earnings is disregarded.

*** Employees earning €356 per week or less and medical card holders are exempt. Earnings of cross border workers are exempt.

SELF EMPLOYED CONTRIBUTIONS

If you are aged between 16 and 66 years of age and have income in excess of €3,175 per year, you must pay PRSI. The PRSI contribution will be based on both earned and unearned income. Certain income such as pensions and amounts received from the Department of Social Welfare are not subject to PRSI.

If you are self employed or do not receive your income from insurable employment you are also liable to PRSI. The normal rate at which contributions are made is

CLASS S1

Some deductions can be made from the income on which you are charged e.g. capital allowances.

Self Employed PRSI 3% on all income

Health Levy 2% on gross income

TOTAL 5%
Minimum contribution is €253 per year.

N.B.
This summary should not be treated as advice or a recommendation for your particular situation, please consult us privately our your own professional advisor for specific indepth advice.




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Testimonials

"I run my own business and after years of struggling with a demanding home life and a hectic work schedule I reached a situation whereby I was functioning poorly with both. I’d missed a couple of VAT payments and had intended to catch up at the end of the year. I missed my own deadlines and tried again to catch-up in the following year. Business became a stressful job of ‘fire-fighting’ each day’s demands, eventually pushing the issue of outstanding taxes out of my mind as much as possible, in order to concentrate on work.

That said, you always know in the back of your mind that these things don’t just go away and that it was just a matter of time before ‘they’ catch up with you. 

After a few years of letting my compliance payments slide altogether, the Revenue made contact with me and gave me an estimate of all PAYE, VAT and tax owed over the years – which ran to over 6 figures- and they wanted the money immediately. I knew I was in big trouble and looked in the Golden pages for an accountant who could help me. The name www.fixmytax.com jumped out of the page and I made contact. I was immediately reassured that they could help me. I was asked for “every bit of paper” concerning the office and all old Revenue correspondence.

The first thing fixmytax.com was to do was make contact with the Revenue on my behalf and assure them that they were handling the situation and that the liabilities were being established, even though it would take time. That took the immediate ‘knock-at-the-door’ shock and worry out of the situation. The coming weeks were spent only dealing with fixmytax, (not the Revenue) answering the odd question by phone and filling in more information for the accountant. Even though this was routine information, I was quite reassured by the fact that they were working on the whole Revenue mess and actually sorting through it for me. This took the panic and stress out of the situation and enabled me to concentrate on work. After a few weeks, accounts and figures had been prepared, which I went over with the accountant.

The accountant had dealt with the Revenue directly on my behalf and he saved over 60% off the original tax bill.

Throughout the process, the fixmytax accountant was hugely supportive to me, dealt directly with the Revenue, reduced the original tax bill considerably and most importantly, had taken the fear out of the situation and given me peace of mind knowing that good progress was being made with the Revenue, rather than hiding from it all.

The cost? Approximately 7% of the money SAVED on the original tax bill!

My Revenue mess caused me huge amounts of anxiety all the time I did nothing to resolve it. In dealing with fixmytax, they took control of the situation and proceeded to do what had to be done. I would not hesitate to recommend them to anyone worried about any aspect of taxation and financial planning for a business.

I now have a good relationship with the Revenue, fixmytax looks after not only the basics of compliance, but also the financial planning and regularly reviews the performance of the business. My business is now stronger and more focussed that ever before simply because of the level of ongoing collaboration and support that I have with fixmytax. They are the proverbial “good accountant” that every business needs.

My most valuable lesson in dealing with fixmytax is that it is far more productive and far less stressful to get a good supportive accountant to do what they do best, leaving me free to do business. Thanks, Patrick!

Satisfied Client, name and address with firm. 

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