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Cash V Profit: Don't be a busy fool!
PRSI and Income Levy Exemptions for Full Medical Card
Introduction to Dividends
Update from Labour Relations Commission and the Equality Tribunal
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PRSI and Income Levy Exemptions for Full Medical Card
by Patrick Doherty

The following exemptions apply to people who hold a full medical card (not a GP-only medical card.)

PRSI

Persons entitled to a Full Medical card are exempt from paying the Health Levy portion of their PRSI. Therefore, their salary must be calculated using the A2 PRSI Subclass which means that the first €127 earned per week is exempt from PRSI and all other earnings are subject to PRSI at 4%.

Income Levy

Persons entitled to a full medical card are specifically excluded from the income levy. The individual does not need to hold the full medical card for the full year to qualify for the exemption for this period. The exemption is due as long as the individual held a full medical card for some period during the year. The individual should supply sufficient evidence to their employer/pension provider that they hold a full medical card. Therefore, it is very important that all companies review and confirm all full medical card holders at the start of each year to check that any employee’s full medical card is not out of date and relevant only to the previous year. When this review is carried out the payroll processor must be advised immediately.

If you have any queries about this or other payroll matters, please contact us on 021 4310 266 or email us on pm@parfreymurphy.ie .

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