A favourable rate change to employers PRSI will take effect from July 2nd 2011. The official line from DSP is that it’s only a temporary reduction.
The rate of Employer PRSI will reduce from 8.5% to 4.25% for earnings below €356 per week thus affecting sub-classes AO and AX.
What implications are there for payroll processing?
Any payments dated on or after the above date will be subject to the new reduced rate.
What if you are planning a June bonus run in July?
It is recommended that you keep the bonus run within the same processing month (June), as software may not be capable of processing the bonus if paid after July 2nd. This is due to difficulties reconciling the two different rates or changes in sub-class resulting from additional pay.
If you have a specific query regarding this please contact your Jefferson Payroll Administrator
For more information please visit this DSP page
All the best,
The Team at Jefferson
