Employee's pension contributions
Personal Retirement Savings Account (PRSA)
A PRSA is a long-term savings account, designed to help people save for retirement. It is available from PRSA providers whose products have been approved by Revenue and the Pensions Authority.
As an employer, if you do not make an occupational plan available, you must provide access to a Standard PRSA.
You may deduct PRSA contributions from your employee's gross pay under the net pay arrangement when calculating their tax. Otherwise, your employee can claim tax relief directly from Revenue. This will be given as a tax credit on their Revenue Payroll Notification (RPN).
You should not deduct PRSA contributions from your employee’s gross pay when you are calculating their Universal Social Charge (USC) and Pay Related Social Insurance (PRSI).
Next: Retirement Annuity Contracts (RACs)