Employee v Contracted Social insurance treatment depends on whether a person is categorised as an employee or an independent contractor. As is the case in other contexts, the distinction may be fine in some cases. Parties may seek to label themselves in a particular way, generally as self-employed, so as to avoid the employer’s obligation to pay the employer’s PRSI and to withhold and remit […]
Insurability Every person over 16 years of age and under pensionable age (66 years) in insurable employment is an employed contributor. a person over 66 and under pensionable age with reckonable income or reckonable emoluments who is not employed is a self-employed contributor. Employer and employee PRSI and universal social charge on benefits must be collected by the employer on the taxable value of the […]
Making Voluntary Contributions Individuals may make voluntary social insurance contributions in order to enhance retirement benefits. If a person ceases to be an employed or self-employed contributor and has qualifying contributions of less than 260 weeks, he is entitled to become insured by paying contributions as a voluntary contributor. This must be done within 12 months of the end of the tax year in which […]
Background Social insurance is administered by The Department of Social Protection. The employment and training levy was formerly administered by the Department of Enterprise Trade and Employment. It was abolished in 1999. The Department of Health managed the Healthy Levy. Health contributions were paid pursuant to the Health Contributions Act 1979. The Universal Social Charge replaced both in 2011. It was intended as a significant revenue-raising […]
Social Insurance & Levies The collection of social insurance and levies is undertaken by the Revenue Commissioners. The social insurance system itself is administered by the Department of Social Protection. Social insurance and levy payments apply over and above tax. They apply generally to the whole of income. There are no allowances. Payment is mandatory. The collection is through PAYE for employees and through the […]
PRSI Class A Private/Public Sector Employments People in industrial, commercial and service-type employment who are employed under a contract of service with reckonable pay of EUR38.00 or more per week from all employments; Civil and Public Servants recruited from 6 April, 1995 and Community Employment participants from 6 April, 1996. Class A Benefits Jobseeker’s Benefit Illness Benefit Maternity Benefit Adoptive Benefit Health and Safety Benefit […]
Charge to PRSI PRSI and health contributions did not apply to benefits in kind prior to 2004. Income tax on benefits in kind was not collected under the PAYE system. As of 2004, benefits in kind and non-pecuniary emoluments are included in reckonable earnings and are subject to PRSI and USC PAYE must now be operated on benefits in kind regarding income tax, employer and […]
Employment Incentive A PRSI employer’s incentive scheme exempted employers from paying employers PRSI for 18 months, subject to conditions. A job must be created. The employee must have been on an industrial training or placement program for at least three months on job bridge for at least six months; or have been in receipt of jobseekers allowance or benefit, single-family payment or disability allowance for […]
Self-Employed Contributors Self-employed persons were brought within the scope of social insurance in 1988. They pay a lesser rate and receive a reduced range of benefits, relative to an employed contributor. The are entitled to the state pension, widowers and survivors pensions, maternity benefit, bereavement grant and adoptive leave benefit. They do not qualify for jobseeker’s benefits and illness-related benefits. A self-employed contributor is a […]
Insurable Employment Persons between 16 and 66 years old are subject to compulsory social insurance. They are referred to as being in insurable employment. The rates and categories applicable to employees differ from those with respect to self-employed persons. The age limit, social welfare pensionable age, was due to be increased to 68 years by 2028. This change was later reversed. Insurable employment includes service […]