Questions from our Forum 11/07/11

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Each week we receive a number of payroll questions on our forum, and here are this week’s batch. Can you help with any answers?

PAYE, PRSI & USC – Whilst operating a PRSA scheme

Can someone put my mind at rest with making some confirmations on the PAYE, PRSI and USC liabability whilst the employee is making contributions into a PRSA scheme.

Example. Emp A

Emp A is being paid a monthly salary of 5000
Emp A is contributing 250.00 to a PRSA scheme
The Employer is Contributing 8% to a PRSA scheme for Emp A.

Am i right in thinking that..
PAYE.
The Employees PRSA amount of 250.00 will reduce the taxable pay for the period by 250.00

PRSI.
The Employees PRSA amount of 250.00 will reduce the PRSI-able pay for the period by 250.00 (Ees PRSI contribution)
50% The Employers PRSA amount of 8% will reduce the PRSI-able pay for the period.

USC.
No reduction in USC liability. USC calculated on 5000.00.

I’m knew to irish payroll and trying to work through a couple of case studies to understand – but this one has me a little bit stumped. Any help will be appreciated.

Pensioners & P46

Good afternoon

An ex employee has reached age 65 & is about to draw his pension from us. Should we:
a) issue him a P46 so that he can tick a box
b) tax him on emergency code
c) use BR on m1 basis

Tags: p46, PAYE, Pensions, prsa scheme, PRSI, Recent Payroll News, USC rate

This entry was posted on Friday, July 8th, 2011 at 17:30 and is filed under Forum. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.