NOTICES TO EMPLOYERS ON ABOLITION OF EMPLOYER PRSI CHARGE ON SHARE-BASED REMUNERATION and PRSI INCORRECTLY PAID ON EMPLOYER CONTRIBUTIONS TO AN EMPLOYEE’S PERSONAL RETIREMENT SAVINGS ACCOUNT (PRSA).

The Minister for Social Protection, Ms. Joan Burton T.D., issued a Press Release on 23rd August 2011 regarding share-base remuneration which is available at http://www.welfare.ie/EN/Press/PressReleases/2011/Pages/pr230811.aspx

The Minister has authorised that the deduction and remittance of employer PRSI on share-based remuneration cease with immediate effect.

The Minister has further authorised the repayment of all employer PRSI deducted and employee PRSI insofar as it relates to share-based remuneration arising from an award or grant which was the subject of a written agreement entered into before 1 January 2011.

Both authorisations relate to PRSI paid since 1 January 2011 and are subject to conditions relating to the continuity of the insurable employment and the amount of the employee’s income for PRSI purposes. Details on the conditions are available on the Department’s website at the following link http://www.welfare.ie/EN/Topics/PRSI/Documents/PRSIRefunds.pdf

If you are an employer who is entitled to recoup PRSI paid to Revenue under these authorisations such payment may be recouped by adjusting the amount of PRSI in your next form P30 and payment to Revenue.

Where the adjustment required is greater than the amount of PRSI payable in your next P30 and payment, then any balance should be recouped from the subsequent P30 and payment, and, where necessary, up to the P30 for December 2011.

Any excess of PRSI not recovered by adjustment to P30s before the end of 2011 can be claimed on the P35 submitted at the end of the year. Please note that any such refund arising must be claimed at the appropriate section of the P35 return.

You may not recoup overpayments of PRSI from income tax (PAYE) or universal social charge payments due to be made to Revenue.