| PRSI changes from 1 January 2024 |
Description | From 1 January 2024, a person will be able to draw down their State Pension (Contributory) between age 66 and 70. It's important that you assign the correct PRSI class to your employees, as an incorrect return could lead to: - an overpayment of PRSI by both the employee and employer
- an underpayment of PRSI by both the employee and employer
- issues for contributors in allowing them to claim their social insurance entitlements
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Resolution | Table for PRSI Classes A & S contributors post age 66 PRSI Class | Person Born Before/After 1 January 1958 | Current PRSI Class under age 66 | Current PRSI Class after age 66 | From 1 January 2024, contributors aged between age 66 & 70 and who have not been awarded SPC | From 1 January 2024, contributors aged between age 66 & 70 and who have been awarded SPC | PRSI Class Post Age 70 | A | Before | A | J | J | J | J | | After | A | J | A | J | J | S | Before | S | M | M | M | M | | After | S | M | S | M | M | Changes for employers From 1 January 2024, employers need to know whether any employee, aged between 66 and 70 and born after 1 January 1958, has been awarded the State Pension (Contributory) to assign the appropriate PRSI class. Confirm with any of your employees, aged between 66 and 70 and born after 1 January 1958, whether they've been awarded the State Pension (Contributory). When a person is awarded the State Pension (Contributory) the letter from the Department of Social Protection advises them that if they continue to work after being awarded their State Pension (Contributory), it's important to inform their employer they're in receipt of State Pension (Contributory) to ensure they don't pay PRSI. Changes for employees From 1 January 2024, employees aged between 66 and 70 and born after 1 January 1958 will continue to be liable for PRSI until they're awarded the State Pension (Contributory) or reach age 70. Once an employee is awarded their State Pension (Contributory) and continues to work, it's vital they inform their employer to ensure they don't continue to pay PRSI (PRSI Class J will apply). |
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