What is the correct class of Prsi for a director? I have a friend a director of a company who has 5% shareholding who has been on Class S PRSI for several years. He is now off work sick but has been denied Illness benefit due to the fact that he has been paying Class S PRSI.
Is he on the correct class PRSI and secondly is there anyway that he is entitled to illness benefit if indeed this is the correct class? Thanks in advance.
Our firm has 2 directors controlling 60% and 40% and both are class S. To get class S status for the director with 40% we needed to write to the revenue and request it. At that time our accountant advised that there was a possibility that the request may be rejected.
I am surprised that someone with a 5% holding is a class S and would definitely investigate if this is the correct as it may also impact their ability to claim the state pension down the line.
Our firm has 2 directors controlling 60% and 40% and both are class S. To get class S status for the director with 40% we needed to write to the revenue and request it. At that time our accountant advised that there was a possibility that the request may be rejected.
I am surprised that someone with a 5% holding is a class S and would definitely investigate if this is the correct as it may also impact their ability to claim the state pension down the line.
Self-employed rate social insurance contributions are PRSI contributions at Class S. These contributions are counted as full rate contributions for State pension (contributory) purposes.
If you were self-employed and started paying Class S PRSI contributions on the 6th April 1988, your entitlement to State pension (contributory) may be calculated based on your social insurance record from that date, provided you satisfy the other conditions for State pension (contributory).
If you started paying Class S PRSI contributions after the 6th of April 1988, your entitlement will be calculated from the date your first reckonable contribution was paid. See Q38 & Q39 for additional information on the classes of contributions that are reckonable for State pension contributory.
You must have paid self-employment contributions for at least one year before reaching the age of 66.
It is important to ensure all self-employment liabilities are paid on time, to avoid possible loss of pension payment.