Employers Tip-November 2010: Save 10.25% of Gross Salary for every employee over the age of 66 Read more.
Overpayments of both employers and employees PRSI occur when employees are put on the wrong PRSI class. While software systems adjust the rate of PRSI payable for employees when processing payroll, it does not recognise which class the employee should be on. The PRSI class depends on personal circumstances as well as earnings. Most payroll is processed by classifying employees at Class A regardless of their personal circumstances resulting in overpayment of PRSI and levies for both employers and employees. At Paycheck Plus we understand the complexities in processing Irish payroll. For employees aged 66 and over, correct classification results in the employee PRSI being reduced to zero so they are only liable for the Health Levy. The savings don’t stop there. On the correct class, employers pay the reduced PRSI rate of 0.5%, saving a massive 10.25% of the employees gross salary.
So don’t delay, check out the date of birth of any employee you think may be applicable and advise Paycheck Plus today of those employees aged 66 years and over. We will adjust them to the correct class and generate immediate savings for you and your employees. Another great reason for using Paycheck Plus for your payroll outsource requirements!