PRSI Special Collections - Glossary of Specialised Terms


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Contribution: See SW63
 
Contribution Class: The Class of Contribution awarded to an employee is determined by the nature of his/her employment and the level of his/her earnings. Different Contribution Classes provide different levels of Social
Insurance cover.
 
Contribution Week: Is each successive period of seven days starting on 1 January each year (see SW63).
 
Employee’s Ceiling: After your employee’s cumulative wages reach the Employee’s Ceiling, the employee’s share of PRSI is no longer payable. Any earnings over and above the ceiling should still be included on the End-of- Year Return, as the employee may be awarded Contributions for all weeks worked. Employee’s Ceiling was abolished with effect from 1st January 2011.
 
Employee’s Share: The Employee’s Share of PRSI is that portion of the PRSI payment which you, as the employer, are entitled to deduct from the employee’s wages at the time of payment. For information on how to calculate the Employee’s Share, please refer to See SW63.
 
Employer’s Share: The Employer’s Share of PRSI is that portion of the PRSI payment which you, the employer, are obliged to pay yourself. It is a percentage of your employee’s gross earnings. You may not deduct this share from your employee’s earnings. For information on how to calculate the Employer’s share, please refer to See SW63
 
End-of-Year Return: The End-of-Year Return is made by you, the employer, at the end of every Tax Year (31 December). It is how you communicate details of your employee’s earnings, period of work, and the amount of PRSI you are paying to this office. This allows us to balance your account and to award contributions to your employees. The End-of-Year Return should be submitted to Special Collection
Section by 15 February each year.
 
Health Contribution: The Health Contribution is that part of the PRSI payment which goes to the Department of Health and Children.. It is NOT collected under the Special
Collection System. If your employee is paying income tax to Revenue, s/he may be liable to pay the Health Contribution. Health Contribution was abolished and replaced by Universal Social Charge with effect from 1st January 2011.
 
Insurable Employment: Insurable employment is earnings from employment which are liable to PRSI deductions under Irish Social Welfare legislation.
 
PAYE: Pay As You Earn System is the normal way Irish employees pay Income Tax.
 
PPS Number: Each person paying Social Insurance in Ireland should have a unique Personal Public Service Number, or PPS No. The PPS No. was previously called the RSI number. If you see or hear reference to an RSI number, you may assume the
reference is to the PPS No.
 
PRSI: Pay-Related Social Insurance, the Irish social security system.
 
PRSI-Free Allowance: The Employee’s share of PRSI is not payable on an amount of his/her weekly or monthly earnings. This amount is known as the PRSI-Free
Allowance, and is subject to change every year (see form SC7 for up-to-date Allowances). PRSI Free Allowance of €127 per week was abolished with effect from 1st January 2013
 
Reckonable Earnings: Salaries, wages and other similar remuneration derived from insurable employment as defined in Social Welfare (Consolidation Contributions and Insurability) Regulations, 1996. Consolidation Act 2005.
 
Revenue: The Irish tax authorities.
 
PPS Number: See SW63.
 
Social Insurance Element: The Social Insurance element is that part of the PRSI contribution which goes into the Social Insurance Fund.
 
Social Insurance Fund: The Social Insurance Fund supplies the bulk of the revenue for contributory Social Welfare Benefits and Pensions.
 
Tax Year: The Tax Year in Ireland runs from 1 January to 31 December.
 
Last modified:14/05/2013