Employers Tip March 2011 - Create a new position and pay no Employers PRSI for 12 months
The Employers Job (PRSI) Incentive Scheme has been extended from 2010. Employers do not have to pay the employers' portion of the PRSI contribution for certain employees.
Employers who have created new jobs for people who had been claiming Jobseeker's Benefit for a period of 6 months will not have to pay employer’s PRSI in respect of their employment for twelve months from the date you are approved for the scheme. The scheme is only applicable for the tax year 2010.
The Department of Social Protection launched a guide to the scheme together with an application form (PRSI 20 form) which can be accessed by logging onto: Employer Job (PRSI) Incentive Scheme
The correct PRSI classes to be used for qualifying employees for a maximum of 12 months are:
- PRSI Class A4 where the employee would normally be insurable under Class A1.
- PRSI Class A5 where the employee would normally be insurable under Class A2 (i.e. Health Levy exemption).
- PRSI Class A7 where the employee would normally be insurable under Class AX or AL.
- PRSI Class A6 where the employee would normally be insurable under Class A0.
Employers who are granted approval to use this scheme must remember to change the affected employee's PRSI class back to their original PRSI class once 12 months has elapsed.