Company Directors' PRSI

C

CShan

Registered User
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Business type: Limited Company
Shares: 50/50 husband & wife ownership

"If you are a self employed company director, PRSI is deducted by your employer under the PAYE system. Although the PRSI of a company director is deducted by his/her employer it is the responsibility of each company director to ensure that the correct amount of PRSI has been deducted and remitted to Revenue." (http://www.welfare.ie/en/Pages/Self-Employed-Contributions.aspx)

I understand that as company directors with 50/50 ownership of the company's shares we classify as Class S PRSI contributors. I find it quite confusing figuring out the PRSI % rates / flat rate contributions and arrangements for certain levels of annual income.

Could anybody clarify it for me, please?
 
Thank you for the answer.

My conclusion is that the PRSI contribution is 4% of the income or €500, whichever is greater - if earnings are more than €5,000 per annum (with Subclass S0 for weekly income below €500 and Suclasss S1 for weekly income above €500).

If earnings per annum are below €5,000, there is no PRSI contribution liability. However, when filling in the P35L on ROS, the system doesn't accept €0 as the PRSI contribution. Is there something I've missed?

Many thanks.
 
The threshold of €5,000 for self-employed people only seems to apply to sole traders as opposed to proprietory directors. If you run a payroll for a director then you have to deduct PRSI at 4% irrespective of the level of salary taken.

You may be able to request a refund of the PRSI from Dept Social Protection if your total income is below the €5,000 threshold, but TBH I'm not sure about that.

Alternatively you could just enter 1 in the PRSI deducted box and see how that goes for you.
 
Thanks for that. That's were my confusion lay. The €500 minimum PRSI contribution made me think I've missed something.

I have returned 4% in the end, but as you said, the software would have probably accepted a €1 entry in that box.

Thanks again,
CShan
 
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