Employers Guide to PRSI Contributions - SW3


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The nature of employment mainly determines the PRSI contribution class that applies to the employee.

PRSI Class A applies to the majority of employees in the private sector and to employees recruited in the public sector since 6 April 1995.

Note

Since April 1991 the level of earnings, not the number of hours worked, determines insurability.

You can get full details of the main contribution classes and examples of both the employees covered by each class and the rate of contribution appropriate to each class from the SW 14 booklet.

Contribution Class A applies to people in industrial, commercial and service-type employment under a contract of service and civil and public servants recruited since 6 April 1995, whose combined reckonable earnings from all employments bring them into Class A.

The appropriate subclass within Class A is based on the earnings in each separate employment (see codes within PRSI classes in paragraph 27).

Contribution Class J applies to the following groups of people:

  • employees in industrial, commercial and service-type employment under a contract of service, whose combined weekly reckonable earnings from all employments are below the threshold for Class A (less than €38 per week in the 2005 tax year. Please check SW 14 for the current amount),
  • employees over 66 years of age,
  • employees who are also full-time civil and public sector employees and paying PRSI Class B, C, D or H in their full-time job.

Contribution Classes B, C and D apply to pensionable employees in the civil and public service, including civil servants, teachers, gardaí, the army and local authority employees who were recruited before 6 April 1995.

Contribution Class H applies to NCOs and enlisted personnel of the defence forces.

Contribution Class K applies to people under 70 years of age who are not insurably employed under the Social Welfare Acts. The following are examples:

  • people getting a pension from a former occupation,
  • people normally paying Class S who have reached 66 years of age,
  • people receiving income from positions of certain office holders, e.g. Judiciary, State Solicitors,
  • prescribed relatives.

However, if the weekly income is below the threshold for Class K (€400 in 2005 tax year) contribution Class M applies. Please see SW 14 booklet for current thresholds.

You should also use contribution Class M for people who:

  • are under 16 years of age;
  • are normally insurable at Class K who:
    - hold a medical card or
    - get a Social Welfare Widow's/Widower's Pension
    - get a One-Parent Family Payment
    - get Deserted Wife's Benefit/Allowance
    - are aged 70 years or over
    - get a widow's or widower's pension under the social security legislation of another country covered by E.C. Regulations.

Contribution Class S applies to self-employed contributors who pay tax and PRSI under the self-assessment system (Schedule D). For enquiries contact the Self-Employment Section (see address in paragraph 70).

Directors whose income is assessable under Schedule E tax may also be liable to pay Class S.

Directors

Depending on the circumstances, Directors can either be employees paying PRSI at Class A insurance or self-employed under a contract for services and therefore paying PRSI at Class S. The Department's website has a comprehensive checklist to determine Employment or Self-employment status of individuals. The links to these booklets are

Hard copies of these booklets are also available from Scope Section. If you are still unsure and require clarification on the Class of PRSI for specific directors you should contact Scope Section (address in paragraph 70).

If you are a company director and you are correctly paying Class S PRSI you should contact Directors Unit, Waterford for queries regarding your PRSI rates and entitlements. See paragraph 70 for contact address and phone numbers.

Agency Workers

Persons employed by Employment Agencies under a contract of service are insurable at PRSI Class A. The person or company who is liable to pay the wages or salary of the individual concerned in respect of work or service is deemed to be the individual's employer.

If a person, recruited by an Employment Agency and acting as a sole-trader, performs any work or service for a third party then that person is insured at PRSI Class S provided the annual income exceeds €3,174 for year 2005 (see SW 14 for current rate).

Excepted Employments

There are employments that are specifically excluded from cover under Social Welfare regulations. These employments are listed in Part II of the first Schedule of the Social Welfare Acts. A common excepted employment would be that of a spouse working for a sole-trading spouse, no PRSI is payable and Class M should be returned where the income is less than the Health Levy threshold and Class K when the Health Levy is payable.

For full information on insurability matters please consult our link on the social welfare website under
http://www.welfare.ie/foi/scope_insofemp.html

If you are not sure what contribution class should apply to any particular employee, consult Information Services (see address in paragraph 70).


For information relating to:

  • liability for PRSI contributions, PRSI general information, PRSI contribution rates and weeks of insurable employment, contact:
    Information Services
    Department of Social Protection
    Social Welfare Services
    College Road
    Sligo
    LoCall: 1890 690 690 (from the Republic of Ireland only)
    Telephone: +353 1 4715898 (from Northern Ireland or overseas)
  • the PRSI contribution class which should apply to a director, contact:
    Scope Section
    Department of Social Protection
    Gandon House, Amiens Street, Dublin 1
    Telephone: (01) 673 2585
  • For PRSI Refunds not in respect of PRSA, RAC and AVC pension contributions, contact:
    PRSI Refunds Section
    Department of Social Protection
    Gandon House, Amiens Street, Dublin 1
    Telephone: (01) 673 2586
  • PRSI Refunds in respect of PRSA, RAC and AVC pension contributions:
    Customer Service Section
    Office of the Collector-General
    Sarsfield House
    Francis Street
    Limerick

If you need extra copies of forms, see below for contact details.

  • For P45s, contact Revenue's Forms and Leaflets Service at Locall 1890 30 67 06 if you are an employer in the Dublin area, or your local Inspector of Taxes for other areas.
  • For P60s contact:
    Office of the Revenue Commissioners
    P35 Section
    Government Offices
    Nenagh
    Co. Tipperary
    Telephone: (067) 33533 or
    LoCall: 1890 25 45 65 (from within the Republic of Ireland only)

If you have queries or want to return a P35 form, contact the P35 Section at the address above.

To make the PRSI remittance each month (P30), send your details and payment to:

Inward Processing Section
Collector-General
Sarsfield House
Francis Street
Limerick
LoCall 1890 20 30 70 (from within the Republic of Ireland only)

To pay the PRSI remittance by direct debit contact:

Collector-General
Direct Debit Section
Apollo House
Tara Street
Dublin 2
LoCall: 1890 20 30 70 (from within the Republic of Ireland only)

Useful addresses previously referred to in this booklet

 

Paragraph

Client Eligibility Services
Social Welfare Services
Department of Social Protection
Inner Relief Road
Ardarvan
Buncrana
Co. Donegal
IRELAND

LoCall: 1890 690 690 (from the Republic of Ireland only)

Telephone: +353 1 4715898 (from Northern Ireland or overseas)

3

Directors Unit
Social Welfare Services Office
Department of Social Protection
Cork Road, Waterford

Telephone: (051) 356 000 or (01) 704 3000

26

PRSI Special Collection Section
Social Welfare Services Office
Cork Road, Waterford

Telephone: (051) 356 000 or (01) 704 3000 Ext 6010

7, 31, 32

Self-Employment Section
Social Welfare Services Office
Cork Road, Waterford

Telephone: (051) 356 000 or (01) 704 3000 Ext 6003/6004/6005

26

Voluntary Contributions Section
Department of Social Protection
Cork Road, Waterford

Telephone: (051) 356 000 or (01) 704 3000

24

You can contact Revenue by phoning (within the Republic of Ireland only) your Regional Revenue Office, the LoCall number of which is listed below:

Border Midlands West Region
Cavan, Donegal, Galway, Leitrim,
Longford, Louth, Mayo, Monaghan,
Offaly, Roscommon, Sligo, Westmeath

1890 777 425

Dublin Region
Dublin (City and County)

1890 333 425

East & South East Region
Carlow, Kildare, Kilkenny, Laois,
Meath, Tipperary, Waterford,
Wexford, Wicklow

1890 444 425

South West Region
Clare, Cork, Kerry, Limerick

1890 222 425

If you are calling from outside the Republic of Ireland, please telephone 00 353 (1) 647 4444.

Remember to always quote your PPS number when contacting your Regional Revenue Office.

The Revenue offices located in Dublin are:

Central Revenue Information Office, Árus Brugha, Cathedral Street, (Off Upper O'Connell Street) Dublin 1.

Revenue Information Office, Level 2, The Square, Tallaght, Dublin 24.

You can also get information by visiting Revenue's website at http://www.revenue.ie/

Last modified:19/01/2010
 

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