Company Directors & minimum PRSI contributions

D

DB74

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Minimum PRSI contributions under Class S is €500 for a year

If a company directors takes a salary of say €10K for the year, the payroll system calculates the PRSI contributions as €400 (€10,000 @ 4%)

So my question is are company directors obliged to pay a minimum €500 and if so how does the other €100 ever get picked up
 
If this not just for Case I or non PAYE income? Try putting some data into ROS Form 11 and see what happens. I'd be surprised if a min PRSI contribution appears as PRSI arising from Schedule E doesn't go near a Notice of Assessment (or whatever it is called now).
 
I know what happens when I plug the figures into ROS already. I am 99% sure that the contributions made through the payroll system are sufficient but just looking for someone more knowledgeable than me to confirm what the situation is.

The Self-assessment section in PRSI (1890 690 690) said it's min €500 contribution, even for Company Directors, but this would go against the ROS system which is why I want the clarification. They didn't seem to understand that there was no mechanism to pick up this shortfall anywhere in the tax system so it's hard to take that advice either.
 
When you make your tax return I'm sure you will be told to pay the extra €100
 
It's no good shouting at me.
I earn a very small director's salary, and whenever I have made my (joint) tax return, ROS has added on the amount I need to get to the minimum.
 
You don't enter the PRSI paid into the Form 11 anywhere so how did ROS know how much PRSI you had already paid on the salary

Do you have other non-directors remuneration income (eg rental income)
 
No other income, but the Revenue knows how much Prsi I paid because they have been given the P35 previously
 
I'm sorry but you are incorrect here

Your Income Tax return takes no account of PRSI on Employment Income at all anywhere on the form, it is only concerned with PRSI on non-employment income as well as PAYE & USC on all income

Your point that Revenue know how much PRSI you have paid doesn't make sense, sure Revenue also know how much PAYE & USC you have paid through the P35 but you still have to enter those figures on the Form 11
 
Just to clarify, I have confirmed with 2 different tax consultants that contributions made through payroll system are enough to satisfy PRSI requirements for that tax year, even if they are less than €500.

The €500 threshold applies to self-assessed income only and NOT directors remuneration
 
Well I shall carry on paying the balance magically requested when the tax return is submitted, in order to qualify for the State Pension. Perhaps I should raise this query in another forum here.
 
Just ran it through ROS and as outlined does not bring up any PRSI BUT if he had €1 of rental profit it kicks up €100 PRSI!!!
 
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