Employers Exempt from Paying PRSI Scheme
A new scheme exempting employers from paying pay-related social insurance (PRSI) for newly hired employees has been launched. The incentive scheme will help employers save in the region of €3000 from the annual cost of employing an additional worker. The scheme is targeted at those who have been unemployed for at least six months or more. If an employer’s application is approved they will be exempt from paying employer’s PRSI for a period of 12 months forward from the approval date. The scheme will be open to applications in relation to any job created in 2010. The criteria for the scheme includes:
- The employee concerned must have been on the Live-Register (Unemployed) for at least 6 months;
- The job must be full-time and must be new and additional – employers will not be allowed to substitute existing employees to avail of the scheme;
- The employer will be required to furnish an up-to-date Tax Clearance Certificate;
- Employers will be limited to a maximum participation rate of 5% of their existing workforce or, for smaller companies, a maximum of 5 new jobs;
- The job must last for 6 months or more, if not the PRSI exempt amounts must be repaid by the employer.
For further information on the scheme please log on to www.sfa.ie or www.welfare.ie.