A / S class PRSI question

CiboC

If a shareholder in a private company is also an employee of that company (but not a director), are they on A class PRSI regardless of what shareholding they have?

Theoretically say they have a 100% shareholding, where they are an employee of a company that they own completely, are they still A class for PRSI?

I know there is a distinction between being a proprietary director or not at 15%, but what about the scenario where an over 15% shareholder is an employee but not a director?

Lockedout2

It would be unusual for a 100% shareholder to be an employee but not a director. Perhaps where a child inherits a shareholding in their parents company on their death and it's very clear that the child is not in control of the company.

The PRSI test is a control test you can own 49% and not have control and be Class A.

CiboC

Is that 'official'?

You can be a director and own up to 14.9% and you are deemed non proprietary, but as soon as you reach 15% shareholding you are in class S, but you do not have 'control' at 15%?

CiarraiAbu2

100% shareholder would be s, as the last poster stated it,s based on control.

CIARAN_BOYLE

CiboC wrote: »

Is that 'official'?

You can be a director and own up to 14.9% and you are deemed non proprietary, but as soon as you reach 15% shareholding you are in class S, but you do not have 'control' at 15%?

15% property is paye tax credit now class s prsi.

CiboC

CiarraiAbu2 wrote: »

100% shareholder would be s, as the last poster stated it,s based on control.

So is the threshold between A and S 49.9% as suggested above?

CiarraiAbu2

No, depends on who owns the other shares. You might 49, wife owns 2 that gives you control. If you are in doubt ring the scope section on Tuesday, sometimes in can be a case by case basis