what is the minimum salary a director (ltd co) can pay himself for prsi purposes?
- Thread starter Nicky
- Start date
Z
z103
Guest
Re: Minimum Director's wage
Well as an S class director I was on zero euros for over a year. (Don't ever work for nothing BTW)
Well as an S class director I was on zero euros for over a year. (Don't ever work for nothing BTW)
Re: Minimum Director's wage
If you are prepared to work for nothing you will never be unemployed
If you are prepared to work for nothing you will never be unemployed
Re: Minimum Director's wage
For example, I would like to do PRSI contribution for my state pension, should I pay myself as a director next
monthly payments: €8.65*8hours per day*5days a week*4weeks a month=€1384, then PRSI contribution
1384*8.5%=€117.64, PYAE =0, total costs= 1384+117.64=€1501.64 monthly and €18019.68 yearly ?
Is that correct ?
In other words can I have no salary or as little as can and make PRSI contribution at the same time ?
Thanks
Nicky
For example, I would like to do PRSI contribution for my state pension, should I pay myself as a director next
monthly payments: €8.65*8hours per day*5days a week*4weeks a month=€1384, then PRSI contribution
1384*8.5%=€117.64, PYAE =0, total costs= 1384+117.64=€1501.64 monthly and €18019.68 yearly ?
Is that correct ?
In other words can I have no salary or as little as can and make PRSI contribution at the same time ?
Thanks
Nicky
C
Cormi
Guest
Re: what is the minimum wage a director (ltd co) can pay himself hes an employee as w
If you were to pay yourself €8.65gross ph for 40 hours per week this would give you 346 gross per week, as you are a director you pay prsi at the s rate which is 5% i.e 17.30, and also as a director you are not given the paye credit so you are only entitled to personal credit of €1830(2008), therefore weekly this would give you tax payable of 34.01(346*20%=69.20-35.19weekly tax credit) this would give you a net take home wage of €294.69 per week. yearly figures Gross salary: 17992, Prsi 899.60 and tax of 1768.52 giving a net yearly wage of 15323.88.
If you were to pay yourself €8.65gross ph for 40 hours per week this would give you 346 gross per week, as you are a director you pay prsi at the s rate which is 5% i.e 17.30, and also as a director you are not given the paye credit so you are only entitled to personal credit of €1830(2008), therefore weekly this would give you tax payable of 34.01(346*20%=69.20-35.19weekly tax credit) this would give you a net take home wage of €294.69 per week. yearly figures Gross salary: 17992, Prsi 899.60 and tax of 1768.52 giving a net yearly wage of 15323.88.
Re: Minimum Director's wage
There is no obligation for a proprietary director to pay himself even the minimum wage, even if the director is a so-called employee
There is no obligation for a proprietary director to pay himself even the minimum wage, even if the director is a so-called employee
C
Cormi
Guest
If you do not wish to take any salary from your company, as previous poster said there is no rule that you have to pay minimum wage os any salary to yourself as a working director, you may qualify to make voluntary contributions, you can find more information on www.welfare.ie its leaflet sw8, the minimum for class s is €253 i think, you also would be able to get more information from your local social welfare office. Although if you have other income e.g rental income you will be paying prsi on this anyway on your personal income tax return.
Also the director could be already paying at A class for another employment.
There is nothing wrong with taking a salary of zero from the company which would leave you PRSI exempt in respect to the company.
Obviously no PRSI payments means no PRSI cover for the relevant period in case that's significant to you or anybody else.
If you pay yourself under Gross €26K per annum (€500 per week) then you will only pay PRSI at 3% and not 5%.
Assuming that you have no other income, if you pay yourself €175 per week then you will not pay any PAYE because your single tax credit will cover any PAYE charged on the salary.
Assuming that you have no other income, if you pay yourself €175 per week then you will not pay any PAYE because your single tax credit will cover any PAYE charged on the salary.
Re: Minimum Director's wage
Nicky,
As a director; I'm paying the S class rate for PRSI and I'm not covered for a state pension or the majority of other PRSI benefits. I.e. medical etc...
I've organised an exectutive pension plan through Hibernian which my company pays in to tax free.
Regards,
Mahons
Nicky,
As a director; I'm paying the S class rate for PRSI and I'm not covered for a state pension or the majority of other PRSI benefits. I.e. medical etc...
I've organised an exectutive pension plan through Hibernian which my company pays in to tax free.
Regards,
Mahons