What elements of PRSI are paid through the Special Collection System?
The Social Insurance element of PRSI is payable by both the employer and the employee through the Special Collection System.
With effect from 1 January 2004 PRSI must be operated by employers in respect of the taxable value of most benefit-in-kind and other non-cash benefits
provided by them for their employees. Full information on how these new arrangements apply are available from Revenue - “Employers guide to operating PAYE and PRSI for certain benefits” at www.revenue.ie or your local tax office. Please note that application of PRSI to benefit-in-kind will operate the same for PAYE and non-PAYE employees.
How do I calculate PRSI liability?
This is a percentage of the employee’s gross earnings which you are obliged to pay. It cannot be deducted from the employee’s earnings, and is calculated as
Employee’s gross reckonable earnings X Employer’s Rate of PRSI (see SC7 for details of rates).
The calculation of the employee’s share of PRSI is slightly more complicated. This is because employees have a weekly PRSI-Free Allowance on which PRSI is not payable (if the employee is paid fortnightly or monthly, an adjusted Allowance is given).
The employee’s share of PRSI is calculated as follows:
Employee’s gross reckonable earnings, minus PRSI Free Allowance X Employee’s rate of PRSI (see SC7 for details of rates).
If the employee has two or more concurrent insurable employments, please refer to - concurrent employments.
The PRSI-Free Allowance applies only to the employee’s share of PRSI. The employer’s share is calculated on the employee’s gross earnings. The Allowance is non-cumulative and only applies to weeks in which PRSI is payable.
The PRSI rates and allowances may be subject to change each year. Details of the current rates are available on form SC7.
What if my employee has other earnings?
If an employee is engaged in two or more concurrent insurable employments, PRSI must be paid on all earnings in each employment.
If a new employee produces either an Irish Income Tax form P45 or a Special Collection System form SC3, showing details of previous earnings, you can assume that any PRSI due on these previous earnings has already been paid. The PRSI liability for the new employment is calculated at normal rates.
How should I record PRSI information?
Details of wages, class of insurance, number of weeks of insurance, employer and employee PRSI contributions for each non-PAYE employee should be
recorded on a weekly/fortnightly/monthly basis.
How do I pay the money?
You should send remittances of PRSI to:
Department of Social Protection
St Alphonsus Road
Contributions should be sent not later than 9 days after the end of the month for which they are due. A completed form SC2 should always be sent with each
remittance. Copies of these forms are available from PRSI Special Collection Section.
If you do not send form SC2 with your remittance, we will not know where the money came from and your account will not be credited.
If you wish to make payments by e-banking, please see SC2 for banking details.
What do I do at the end of the Tax Year?
End of Year Return and Declaration for recording PRSI details should be completed at the end of each Income Tax Year and sent to PRSI Special Collection Section.
The Income Tax Year ends on 31 December and the Return is due in PRSI Special Collection Section by 15 February after year end.
At the end of each Income Tax year, you should also give a completed form SC4 to each non-PAYE employee certifying the number of contributions paid
in respect of the employment for that year.
Where a non-PAYE employee ceases employment during an Income Tax Year, a cessation of employment certificate (SC3) should be given to them. You should ensure that Parts 1, 2 and 3 of the SC3 are fully completed.
Please see Operational Guidelines on www.welfare.ie for further information on PRSI Special Collections.
What if I also have PAYE employees?
If you also have PAYE employees, their details should be communicated to Revenue in the normal manner.
If your employee’s earnings are split between PAYE and non-PAYE earnings, you should ensure that PAYE details are returned to Revenue and the non-PAYE details are returned to PRSI Special Collection Section.
It is important that the details you send to us on the End of Year Return and Declaration form, in respect of your non-PAYE employees, are NOT duplicated on your P35 return to Revenue. If you do this, Revenue will bill you for the money submitted to this Department, and you will have to amend your P35 to remove the details proper to this office.
Where can I get more information?
Any enquiry about the PRSI Special Collection System can be addressed to:
PRSI Special Collection Section
Department of Social Protection
Telephone: (01) 471 5898
LoCall: 1890 690 690
If calling from outside the Republic of Ireland please
call + 353 1 471 5898
Fax: + 353 51 877 838
For more information, log on to www.welfare.ie.
Forms are available from the PRSI Special Collection Section or from www.welfare.ie.
If you are unsure as to the insurability status of an employment or the correct Contribution Class, contact:
Telephone: (01) 673 2585
You can also view a glossary of specialised terms on www.welfare.ie.
The rates charged for using 1890 (LoCall) numbers may vary among different service providers.