Budget 2013 - PRSI Changes
There are a number of key changes announced in Budget 2013 regarding PRSI that employers need to be aware of both for themselves and for their employees.
Self-Employed people will need to pay a minimum PRSI contribution of €500 per annum, increased from €253. Employees who are currently liable for PRSI will no longer have the weekly €127 PRSI allowance. This means that all employees who currently pay PRSI will pay just over €5.00 extra per week in PRSI or €264.00 per annum. Minister Noonan’s speech did not specify the date on which this comes into effect however we anticipate it will be effective from 1st January 2013. The team at Paycheck Plus will make the required adjustments to your payroll at the appropriate time. However you may choose to communicate this to your employees so they are aware of the change.
New measures have now been introduced to ensure that all sources of personal income are now subject to PRSI. Budget 2013 changes mean that those who pay a modified PRSI Rate (Class B, C, D) arising from income generated as a result of a trade or profession and any unearned income will be subject to PRSI from 1st January 2013. In 2014 those who currently pay PRSI on their salaries will also be subject to PRSI on any unearned income (rental income, dividends, investment and interest on deposits/savings). Exact details of how this particular Budget 2013 PRSI Change will be calculated and paid have yet to be announced.