EMPLOYEES' PRSI
Pay Related Social Insurance (PRSI) is payable by employers, employees and self employed persons. on earnings.
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. This may change given the current economic issues facing the government.
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.
CLASS S1
If you are self employed or do not receive your income from insurable employment you are also liable to PRSI. The rate at which contributions are made are calculated under Class S1.
Some deductions can be made from the income on which you are charged e.g. capital allowances.
Income Levy
All incomes are subject to an Inome Levy from 1st January 2009 and will continue for 2010. A unified rate of PRSI is being developed to encompass PRSI, Income and Health Levies for all future years from 2011 inclusive.
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.
If you require more information please consult your tax advisor or email us at tax@fixmytax.com.
