Tax prsi/ obliged to pay

deco87

Frequent Poster
Messages
143
Just quick one. I have state pension. I will retire next month and do bus driving.
Can I work and just pay tax myself or the employer whichever... A stamp is very expensive... If I don't wish to pay the A stamp.. .. And just pay tax / usc is that possible... Not bothered about state pension..
Am I / employer.. Obliged to pay a stamp?
 

Abren03

Registered User
Messages
13
It is up to your employer to apply the correct prsi rates.

If you are 66 or over, class J applies - zero rate for employee and small rate for employer.

“” The Class J contribution normally relates to people with reckonable earnings of less than €38 a week (from all jobs). However, a small number of employees are insurable at Class J, regardless of earnings - for example, employees over age 66 and people in subsidiary employment.””
 

deco87

Frequent Poster
Messages
143
If self employed driver for example is it not your responsibility......is it obligation to pay a stamp ...that's prsi I presime?
 

Early Riser

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Messages
596
If self employed driver for example is it not your responsibility......is it obligation to pay a stamp ...that's prsi I presime?
"All self-employed persons aged between 16 and 66 years of age, with reckonable income or emoluments of €5,000 or more per year, are liable for compulsory insurance at Class S."

There are some exceptions, but it from what you describe, it doesn't seem that you would be one of them. See these refs:


 

deco87

Frequent Poster
Messages
143
Super thanks , one more for you!!! Any idea what a Class S stamp would cost an employer ? In circumstances as outlined above.
If I earn under 5k (100 a week) Is it true I don't NOT have to pay any stamp if self employed? i.e. as a driver.

If I go over 5k I pay a S stamp? Does this S stamp , go anyway towards the state pension that kicks in at 68 ? thanks a mill D
 

gipimann

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4,734
Class S is for self employed persons, so there is no employer contribution.

Class S does count towards State Pension.
 

Early Riser

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596
Hi deco87,

I am no expert on this, so open to correction.

But, from reading the documentation above, if your reckonable income for Class S is above €5000 pa then you pay 4% on all your reckonable income, subject to a minimum annual payment of €500. Reckonable income to make up the €5000 includes not only self-employed income but other income outside normal PAYE, such as deposit interest, rental income, share dividends or options, etc. Once you pay all your tax and PRSI on such income you are awarded 52 Class S contributions for the year. These contributions do count towards the State Pension in the normal way.

As I understand it, if your total "reckonable" (excluding your Occ. Pension) income does not exceed €5000 then you are not subject to Class S. But, as I said, open to correction.
 

DB74

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Messages
1,599
I have state pension. I will retire next month and do bus driving.
What do you mean by this? Do you mean that you will retire next month and you will start getting the state pension then?
 

deco87

Frequent Poster
Messages
143
You cant get state pension till 68?
I will retire next month. Fact.

A state pension is given to state employees who retire.

I will drive buses when I retire next month.

Is that clear ?
 

mathepac

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Messages
6,748
A state pension is given to state employees who retire.
A state pension, contributory or non-contributory, is payable to all citizens who meet the necessary qualifying criteria. A contributory pension is non-taxable and non-means-tested, whereas a non-contributory pension is means-tested and may be taxable.
 

Early Riser

Frequent Poster
Messages
596
You cant get state pension till 68?
I will retire next month. Fact.

A state pension is given to state employees who retire.
What I understand from your OP is that you have retired with an Occupational Pension. If you were a public service worker this Occ. Pension is paid by the state (as Protocol says, a Public Service pension).

But this is not the "State Pension" (contributory or non-contributory). I understand that you are not the age yet to claim a State Pension. Correct?
 

deco87

Frequent Poster
Messages
143
I am in the public service. I will retire next month. I get gratuity and public service pension then. The state pension subject to prsi conditions kicks in at 68 I understand.
I'm looking to do a bit of work bus driving as I'm 55.
My enquiry is really i will of course continue to pay tax usc etc I understand ...this stamp issue seems to be a stumbling block ...for employers due to my situation ..no different to 1000s others.

So I wondered could I not bother with stamp if not mandatory..it seems it is .5000 is a threshold for S stamp.
If I earn over 5000 what stamp then applies ? If I keep it to under 5000 ( 100 a week) does this stamp ..S .... give pension entitlements....if you can follow!!!
 

Early Riser

Frequent Poster
Messages
596
So I wondered could I not bother with stamp if not mandatory..it seems it is .5000 is a threshold for S stamp.
If I earn over 5000 what stamp then applies ? If I keep it to under 5000 ( 100 a week) does this stamp ..S .... give pension entitlements....if you can follow!!!
If you are going to be self-employed and have reckonable income over €5000 then an S "stamp" applies. 4% of reckonable income subject to a minimum payment of €500. S "stamps" count towards the State Pension in the normal way. If you're reckonable income is below €5000 then the "stamp" does not apply, as far as I know.

If you are engaged by an employer to drive a bus ( as opposed to self-employed) then your employer must register you for PRSI and make the relevant employer and employee deductions.

There is no provision for you "not bothering" with a "stamp" - it is either payable or not (leaving aside voluntary PRSI contributions, which is another matter).
 

deco87

Frequent Poster
Messages
143
Thank you I understand what you say.
Re minimum payment ..
That 500 euro minimum payment you mention if I am self employed driver for example earning say 300 a week ...gross ..the s stamp in this instance will be 500 euro a week ? My pension of course will be taken into account.

There would really be very little point working at that rate then i imagine?

Thank you

D
 

Early Riser

Frequent Poster
Messages
596
That 500 euro minimum payment you mention if I am self employed driver for example earning say 300 a week ...gross ..the s stamp in this instance will be 500 euro a week
€500 is the minimum payment per annum. Your Occupational Pension is not included in the calculation for class S.
 
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