1 man ltd company - PRSI

M

Moggy

Guest
Hi,

I am a software contractor setup as a ltd company. Should I be paying monthly PRSI contributions or is it done as a lump sum at the end of the year? Is there a PRSI bracket that covers loss of earnings if I was to fall ill?
 
Class 'S' PRSI is payable by proprietory directors. Its payable with the PAYE/PRSI returns filed monthly/quarterly or on direct debit when the company is registered as an employer. Class 'S' only covers state pension. It does not cover sickness benefit. There is no provision for proprietory directors to pay full 'A' rate PRSI which gives sickness benefit.
 
Is class A optional or is it just not permitted for a director? Should my accountant be taking care of my PRSI payments?
 
Moggy said:
Is class A optional or is it just not permitted for a director? Should my accountant be taking care of my PRSI payments?
Click to expand...

Class A is not available for a proprietory director. If you own the company and are being paid wages/salary then Class S is payable.

The directors are responsible for handling the PAYE/PRSI. If you have outsourced that function to an accountant or bookkeeper then they would be advising you of the amounts due based on the figures you provide them. Do not automatically assume that your accountant has responsibility to do this for you. If in doubt, check with them on who is to do the PAYE/PRSI.
 
you need to get yoruself an incoem protection policy, you can write it off against your tax bill but as a S class PRSI payer its the only thing you will have if you get sick and can't work.
 
OK thanks. I'll keep taking my vitamins in the meantime :)
 
Moggy said:
Is class A optional or is it just not permitted for a director? Should my accountant be taking care of my PRSI payments?
Click to expand...
Your accountant should at least be advising you on this stuff if you ask him/her.
 
If you're paying an accountant he should definitely be answering these questions! make sure you're clear on who is filing the paye/prsi returns, being late on your returns will only attract attention from the revenue and you will very quickly start accumulating late penalties/interest.

there are some good (and cheap) payroll packages available if your accountant's not doing it for you.

Paraic
www.prima.ie
 
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