Pay Related Social Insurance (PRSI)-Frequently Asked Questions for Employers

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Question: I’ve just recruited a new employee. The P45 states that total earnings to date this year are EUR100,000. How do I know how much of that has been subject to PRSI and how much of the salary I will pay to them in 2009 should be subject to PRSI?

Answer: In 2009, where an employee commences employment and presents a P45 dated after May 1, the employer should assume that total income, as recorded on the P45, has been subject to the correct rate of PRSI.

In certain circumstances, such as where an employee has earned EUR52,000 prior to May 1, this may result in an under deduction
of PRSI, for this employee, however in 2009 the recovery of any such under deductions will be a matter for the Department of Social and Family Affairs.

Question: How do I calculate PRSI for an employee who has already exceeded the 52k PRSI threshold prior to the 1st May 2009".

Answer: Re-activate the deduction of PRSI on first EU23,036 of earnings paid after the 1st May (52,000 + 23,036) which is equal to the new amended PRSI income threshold of EU75.036)

Last modified:07/07/2009



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