Brendan Burgess
Founder
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I thought I had got the definitive answer to this from Revenue but an accountant has told me that he got a different answer, or, probably , a more specific answer. This is my summary, but it's based on what I have been told. I can't find a Revenue or Social Welfare link to confirm it. When completed, I will send it to social welfare and ask them to issue their own version.
Verify any of this before taking action on it.
Corrections and authoritative links welcome. Please also fill in any gaps.
It seems to be full of anomalies.
Issues outside the scope of this thread - and covered in other threads
* When you no longer pay PRSI, you move to Social Insurance Class M
It is odd that PRSI is deducted on ARFs and Directors' salaries until their birthday while there is no PRSI for the year on the self-employed or rental and investment income, but the explanation appears to be that it is because ARFs and Directors are paid under the PAYE system.
Verify any of this before taking action on it.
Corrections and authoritative links welcome. Please also fill in any gaps.
It seems to be full of anomalies.
Issues outside the scope of this thread - and covered in other threads
- Exceptions and exemptions due to low income
- Whether contributions qualify as PRSI contributions for contribution record purposes
- Whether people can make voluntary contributions
Original social insurance class* | ||
Ordinary employees of companies | A | Employees PRSI payable until your birthday. No PRSI after that Employers PRSI - I don't know. |
Proprietary Director's salary | S | PRSI payable until your birthday - no PRSI after that. |
Self-employed income | S | No PRSI payable in the full year you hit 66 |
Rental and investment income | S | No PRSI payable in the full year you hit 66 |
Occupational pensions | M | No PRSI payable at any age. If you draw down your pension early, you don't pay PRSI on it source |
Drawdowns from an ARF | S | 4% PRSI payable until your 66th birthday. Definitely for under 66 No PRSI after your 66th birthday. source |
* When you no longer pay PRSI, you move to Social Insurance Class M
It is odd that PRSI is deducted on ARFs and Directors' salaries until their birthday while there is no PRSI for the year on the self-employed or rental and investment income, but the explanation appears to be that it is because ARFs and Directors are paid under the PAYE system.
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