Employer's PRSI exemptions on PRSA contributions?

C

ClubMan

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Quick Question.

If I contribute 100 to my PRSA every month through salary deduction, I don't pay tax or employees PRSI on this 100.

However, does my employer still pay employers PRSI on the 100?

I want to know, as my employer is not making any contribution to my scheme. I don't want to be making contributions that will be putting more money in his pocket.

Thanks
 
Re: PRSI

I want to know, as my employer is not making any contribution to my scheme. I don't want to be making contributions that will be putting more money in his pocket.
Click to expand...

Ah Iris - Don't be spiteful! (I don't know the answer to your question).
 
Re: PRSI

However, does my employer still pay employers PRSI on the 100?

My understanding is that the answer is yes and that only employer contributions to the PRSA on behalf of the employee (which are completely at the discretion of the employer and a contractual issue between the employer and employee) are exempt from employer's PRSI. However I'm open to correction on this. See for on this very topic.
 
PRSAs - employer PRSI relief

If you make PRSA contributions through your payroll, your employer only pays employer PRSI on your reduced earnings, i.e. net of your contributions. There is nothing in the tax rules about whether these contributions are contractual or otherwise.

I don't know what the situation is if you pay the PRSA contributions out of net pay and reclaim tax relief through your annual tax return.

P
 
Re: PRSAs - employer PRSI relief

Can you provide an authoritative reference for this interpretation (in particular the exemption of employer PRSI on employee PRSA contributions deducted through payroll) as I could never find it? Thanks.
 
PRSI

I've just been reading the Eagle Star Employers PRSA Guide. It confirms that employers will not have to pay employers PRSI on employees contributions.

Like Iris, my employer is not making a contribution to my plan. Yet he's saving 10.75% on my contributions.

Surely the legislation should be changed to prevent this situation.
 
Re: PRSI

Were you all making the opposite points when Charlie McCreevy abolished the ceiling on employers' prsi a few years ago? The cost of employing well-paid people went up dramatically and there was very little protest from the employees.

For example, an employee on €100k now costs the employer €10,750 in PRSI. It used to cost around €5,000.


Brendan
 
Re: PRSI

Were you all making the opposite points when Charlie McCreevy abolished the ceiling on employers' prsi a few years ago?

"You all" meaning Iris and Ham Slicer I presume? ;) I might be wrong but I got the impression that Ham Slicer might have been coming at this from the point of view of levelling the playing pitch rather than arguably giving occupational PRSAs an (unfair?) advantage over standalone PRSAs? I just thought that it was notable that the fact (?) that there is employer PRSI relief on employee PRSA contributions gives employers a concrete cost saving reason to actively encourage their employees to participate in their PRSA scheme. I'm not sure that many people (employers, employees or pension industry professionals) are aware of this. There is also the potential there for employees to negotiate with the employer to have some of the PRSI saving contributed as an employer contribution on their behalf. Well I'm going to try anyway! ;)
 
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