Employer/Employee Contribution

M

MissRibena

Guest
Hi everyone

I want to put 4800 of a bonus I'm due into a PRSA, which I've just opened. Since 4800 is more than 15% of what I have earned up to this point in the year, I was originally proposing to put 3000 in now and 1800 in October or November.

However, it struck me last night that it would be handier to it all in together now and put it in as an employer contribution instead of an employee one.

This is a very small operation so my employer and I are both really flexible about how it is set up.

I'm wondering about the implications:
1. If it's an employer contrib, are there any real implications if the gross 4800 doesn't show up in my p60? (apart from verification of earnings for loans etc)?
2. It would effectively look like I have contributed nothing to my own PRSA - will this matter anywhere down the line?
3. Am I right in saying that if it is all an employer contribution, the company would save employer's PRSI?

Any comments or opinions would be great.
Thanks
Rebecca
 
> Since 4800 is more than 15% of what I have earned up to this point in the year, I was originally proposing to put 3000 in now and 1800 in October or November.

Note that if you did no max your contributions last year then you can claim tax relief in respect of last year's unused tax relief by making the contribution before October 31st of this year. Note also that if you go over the relevant age related tax relief limit then you can carry the excess forward and claim relief on it in the future in any year that you don't claim all allowable relief. Note also that standalone PRSA contributions are eligible for PRSI/health levy relief but, like tax relief, you have to claim it yourself unlike a PRSA funded through payroll:



> However, it struck me last night that it would be handier to it all in together now and put it in as an employer contribution instead of an employee one.

Not sure how that would make a difference. If the employer contribution pushes your total (employee plus employer) contribution over the relevant age related tax relief limit then tax and PRSI/health levy BIK becomes an issue.
 
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