2.1 What is the Special Collection System?
The vast majority of Irish employees who are liable to PRSI are on the PAYE system. For these employees, PRSI is collected by Revenue on behalf of the Department of Social and Family Affairs, and not through the Special Collection System.
For employees who have earnings which are subject to PRSI, but which are not subject to the PAYE system of taxation, PRSI is paid directly to the Department of Social and Family Affairs through the PRSI Special Collection System.
This latter group of employees includes;
- those whose earnings are paid from an employer's office or residence outside the State, where the employer is not registered for PAYE with Revenue;
- certain employees of Embassies who do not register as employers in Ireland;
- those who are liable for PRSI but whose employer holds a certificate from Revenue excluding the employee from PAYE tax;
- those working in another country and paying tax abroad but who are retained on the Irish Social Insurance system by virtue of an E101 Certificate, Certificate of Coverage issued under a Bilateral Agreement with another State, or, where the country of work is not covered by EC Regulations or by a Bilateral Agreement, by virtue of Social Welfare (Consolidated Contributions and Insurability) Regulations, 1996 (SI 312/96), as amended;
- Domestic Employees who are employed in the home of their employer on domestic duties only, and who earn less than €40 per week in the domestic employment (see Leaflet IT 53);
- certain persons who are self-assessed for Income Tax purposes but classified as employees for PRSI purposes, e.g. Sub-Post Masters, Social Welfare Branch Managers, medical professionals employed on a fee basis by the various Health Boards;
- Church of Ireland Ministers employed by the Representative Church Body (Class E PRSI);
- FÁS Trainees.