Spouse not paid min €650 PRSI

[Savvy]

Hi,
My wife has worked for my Ltd Co ( as a director) for the last two years and is paid 6k-7k a year.

I was just reviewing end of year payment slips and she paid less than 300 euro each year in PRSI(she is class S)
The form 11 has no reference to the outstanding PRSI due(we are jointly assessed)

My understanding is that she should have paid a min PRSI of 650 as income over 5k.

I can raise with accountants on Monday but I'm wondering if there is something obvious I'm missing here as to why she doesn't pay more?

 

[Ciru75]

Does she have other income?

 

[Savvy]

Does she have other income?

No only income from the company

 

[ClubMan]

What does her PRSI statement say about her contributions/credits record?

Contribution Statement

<p>Request a statement of your history and record of contributions paid</p>

services.mywelfare.ie

 

[Savvy]

She hasn't got the public services card so can't check them today but has requested her contribution statement

 

[Robovac rider]

Is she an employee?

If she is an employee she is class A.

She should have 1 class A for every week she earned €38 or more.

There is no yearly minimum payment for class A

 

[Savvy]

she is class S . Updated original post to make this clear

 

[jpd]

Is she an employee, director or self-employed?

Seems strange to be a class S

 

[Savvy]

she is a director. PRSI class S is the norm

 

[AkashR]

DSP's PRSI Class S rates page says the minimum annual contribution for Class S is €650. At 4.2% through payroll, €6,000 to €7,000 of salary comes to about €252 to €294, which matches what she paid, so the gap is the minimum less what was deducted: roughly €356 to €398 a year. Whether that balance was picked up on your joint Form 11 is the question for the accountant on Monday.

 

[Savvy]

Whether that balance was picked up on your joint Form 11 is the question for the accountant on Monday.

I can see that it wasn't picked up on Form 11. My question is regarding if there could be some reason that it was not due...seemingly not though.

I think I will wait to see what comes back from Contributions Statement and then follow up with accountants.

 

[Robovac rider]

Is your wife's employment status selected as Proprietary Director on the drop down menu on form 11?

Prsi for Proprietary Directors is collected under the PAYE system and can be less than the required €650 yearly minimum.


On the Form 11 (via ROS or the paper return), controlling/proprietary directors must be classified specifically as a Proprietary Director rather than a standard employee.
Selecting the correct status is essential because it controls how Revenue calculates your tax credits and PRSI on the form.

Key Selections on Form 11

• PAYE / Schedule E Income Panel. In the employment income section on ROS, select Proprietary Director (or Directorship - Proprietary) as the employment/income type for the salary drawn from your own company. Even though the income was processed through payroll, it must be separated from regular employment income.
• Tax Credits (Earned Income Credit). Because you are a proprietary director (owning or controlling more than 15% of the ordinary share capital), you are not eligible for the standard Employee (PAYE) Tax Credit on that directorship income. Instead, you claim the Earned Income Credit in the Personal Tax Credits panel.
• PRSI Classification Panel. In the PRSI/Self-Assessment section, confirm that your income is subject to Class S PRSI. ROS uses this designation alongside your proprietary director PAYE figures to verify whether you have met the €650 annual minimum and to credit the Class S PRSI already deducted through payroll.
  
  
• Spouse or Civil Partner Employment. If your spouse or civil partner also works for the company, their income must likewise be marked as Proprietary Director / Spouse of Proprietary Director, as they are also restricted from claiming the standard Employee Tax Credit on income from that company.