Query on PAYE Modernisation and Proprietory Directors

[DB74]

OK here's the scenario

Proprietory Director doesn't take regular salary payments

In 2018 and prior, any payments taken in each calendar month were totted up and then a Net-to-Gross was run at the end of the month and the P30 was submitted and paid

But now

Revenue say that every payment made HAS to be reported on or before the payment date so if that director wants to take a payment today then this payment must be reported to Revenue today

So now I must change the payroll to weekly reporting instead of the previous monthly reporting

But suppose there are some weeks where work is slow so the director doesn't take a payment at all in that week

This will result in the director having less than 52 PRSI stamps for 2019

Revenue Employer helpdesk are telling me that this PRSI shortfall will "sort itself out" with the submission of the Income Tax return which is basically rubbish

Is my understanding of the situation correct?

 

[dublin67]

This is a very interesting point - previously this would not have been an issue as you would have entered 52 weeks at class S1 for a director.

Rather than talking to the Revenue, who only collect PRSI, try talking to Social Protection and see what they say. From a technical viewpoint my understanding is that if you have been a director for a full calendar year and draw salary/fees in that period then you get your full 52 contributions.

 

[Mrs Vimes]

Could he pay himself a minimum amount every week (I think it has to be over €38 to get a stamp) and then "bonuses" as required?

 

[osheamanning]

If you can , stick with a monthly payment as opposed to weekly.
The onus on you to make weekly returns can be a bother, which are time consuming and easy to forget.
In the event of a PAYE audit, Revenue will expect you to make a return EVERY time you are paid.