Pay­related social insurance (PRSI)

Self­employed taxpayers will usually be liable to pay Class S PRSI contributions either at a rate of 4% on all income or at €500, whichever is the greater

You are exempt from Class S PRSI if you earn less than €5,000 from self­employment over a single tax year, but you have the option to pay a €500 voluntary contribution to keep your social welfare payments up to date

If employed by a limited company with ‘close ownership’, that is, one owned by your spouse or a family member, you will pay PRSI Class A (or Class J) If you participate in the running of the company, have control over its operations, hold a directorship or a shareholding position, you may be liable to pay Class S PRSI (unless exempt earning less than €5,000)

If two or more family members are operating a business as a partnership and sharing the profits they are insurable as self­employed contributors at Class S if they earn over €5,000 Family members employed by a partnership pay Class A (or Class J)

You can see examples and find out more about PRSI credit on the Department’s website