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Employer Job (PRSI) Incentive Scheme
by Kevin Nyhan

If an employer hires a new employee during 2010 and that employee meets the qualifying criteria, then the employer will not have to pay employers PRSI in respect of that employee for one year. The rate of employers PRSI is either 8.5% or 10.75% of the employee’s gross pay. The scheme can cover employees already hired since the start of 2010 as well as any hired before the end of 2010.

The main criteria are that the job must be a new position of at least 30 hours work per week, that the new employee must have been in receipt of social welfare payments for at least 6 months or in a FAS work placement programme for 3 months and that the new job must be for at least 6 months. However, each application must first be approved by the Department of Social Protection before the scheme can be applied. You will need to complete a PRSI 20 form and send it with a current tax clearance cert to the Department of Social Protection (address on form).

There is a limit to the number of new employees an employer can hire – 5% of existing workforce or, for smaller businesses, maximum of 5 jobs.

Full details of the scheme can be found on the Department of Social Protection’s website.

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