PRSI - Quick Ceist

sammalone

Hi All,

I'm a small trader with one employee so I do my own books. I was paying my employee €600 pw all along and so had them at PRSI subclass A1 which I presume was correct. This meant I charged the employee PRSI @ rate of 4% for first €127 and the balance @ 8% i.e €37.84 pw. For employer's PRSI i was calculating it at 10.75% on the whole €600 ie €64.50 pw
Now because of the downturn I reduced the hours to this employee and end up paying them €500 pw. The problem is when I looked up the PRSI rates it looks like that changes the class of PRSI to AL which looks like it reduces the total prsi contributions come way down - am I missing something here? I don't want my employee to lose out on any benefits so should I just increase his wages to say €510 to keep him in class A1 or does it make any difference?

I hope this isn't a stupid question, Thanks

namenotavailablE

According to this page, once the employee is in Class A irrespective of which sub-class, s/he will still qualify for the full range of benefits.
I guess, if in doubt, you could pay an extra €10 per week and s/he'll definitely stay in subclass A1

Hope this helps.

Your calculations tally with mine- see my Excel spreadsheet here.