(GTK = Good To Know) – Where an employer contributes to a PRSA on behalf of employees, a taxable benefit-in-kind (BIK) arises. However, what differentiates this from normal BIK is that it is not subject to PAYE/PRSI but is subject to the Income Levy.
This will be treated as a notional payment for Income Levy purposes only on your payroll. Any employer (ER) PRSA contributions need to be declared on any P11Ds sent out by Revenue. Arrears will need to be calculated on any contributions already made year-to-date (YTD).
All the best,
The Team at Jefferson