PAY RELATED SOCIAL INSURANCE PRSI

Paid by Employer and Employee Sent to collector General – monthly All Gross income subject to PRSI 2

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. 3

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 4

PRSI Classes Class A subdivided into 9 different classes A0, AX, AL, A1, A2, A4, A5, A6, A7, A8, A9 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 ts/sw19.pdf ts/sw19.pdf 5

PRSI Class Placement Depends on:  Public or Private sector  Nature of employment (self-employment)  Earnings 6

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) 7

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. 8

Steps to Calculate PRSI 1. check ges/sw19_sect1.aspx to see what class – people the class applies to ges/sw19_sect1.aspx 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 contribution 5. Total 9

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

Calculating PRSI Catherine works in Dunnes and earns per week Pays Subclass AX PRSI 11

PayPRSI RatePRSITOTALS EE Employee Share % %9.12 Total EE9.12 ER Employer Share %15.09 TOTAL ER15.09 TOTAL PRSI

Example 2: Calculating PRSI Darren works in a local shop and earns per week Pays Subclass AL PRSI 13

PayPRSI RatePRSITOTALS EE Employee Share % %10.92 Total EE10.92 ER Employer Share %43.00 TOTAL ER43.00 TOTAL PRSI

Example 3: Class B People within Class B Permanent 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

Calculating PRSI Liz is a teacher and earns per week Pays Subclass B1 PRSI 16

PayPRSI RatePRSITOTALS EE Employee Share %0.00 (€ €1,443) % %0 Total EE5.17 ER Employer Share %12.06 TOTAL ER12.06 TOTAL PRSI

Calculating PRSI Mary works in a shop and earns per week Pays Subclass AX PRSI 18

PayPRSI RatePRSITOTALS EE Employee Share %0.00 4% Total EE ER Employer Share % TOTAL ER TOTAL PRSI 19

Calculating PRSI David works in a college and earns per week Pays Subclass B1 PRSI 20

PayPRSI RatePRSITOTALS EE Employee Share % (€ €1,443).90% 4% Total EE ER Employer Share 2.01% TOTAL ER TOTAL PRSI 21