Let Paycheck Plus help you comply with your Employer Pension Obligations and save on PRSI at the same time
Contact Paycheck Plus today and we will arrange a meeting for you with our associate QFA who will advise you of the best Pension Scheme options for your employees.
All employers are required by law to provide access to a pension for all employees whether they are in full time, part-time, temporary, contract or casual employment. If there is no in-house scheme, or there are restrictions on entry, contribution amounts or benefits, then a Personal Retirement Savings Account (PRSA) must be offered by law. Failure to comply is a criminal offence and could result in a fine of up to €12,700 and/or up to 2 years imprisonment. The employer may contribute to the PRSA if they wish, but are not obliged to do so. The employer is obliged to allow employees time to explore the PRSA in-depth and discuss their scheme with an advisor during paid working hours.
Providing a Company pension, or occupational pensions scheme is a tax-efficient savings plan put in place by the employer to provide a retirement income for employees. The employee pays less PAYE and PRSI on their relevant earnings. In effect this means that for every €100 contributed to a pension scheme by the employee the net cost, as a higher rate tax payer is €100 less €41 for PAYE and €8 for PRSI and Health Levy, which means the actual cost is only €51.00.
The advantage for the employer is that the Employer PRSI is also reduced by the €100, so the employer PRSI is reduced by up to 10.75% or €10.75, which more than covers the administration costs. It is therefore to your advantage as the employer to encourage your employees to recognise the benefits available to them from Revenue as they make a contribution towards their retirement. A useful pension calculator is available at www.pensionsboard.ie