Sub-Postmasters and Social Welfare Branch Managers - Tax and PRSI

For income tax purposes, the income arising to Sub-Postmasters and Social Welfare (SW) Branch Managers in their capacities as Sub-Postmasters and SW Branch Managers is taxed as self-employment income and is reported to Revenue on a Form 11.

Such income is also liable to PRSI (at Class A) which is deducted at source by An Post / Department of Social Protection. In the case of Sub-Postmasters, class A PRSI is only charged on an element of the total payment made by An Post. The cost of staff and a percentage of the scale payment (to cover expenses) are not within the class A PRSI charge. With regard to SW Branch Managers, PRSI is charged on the total payment by DSP. This is in accordance with the terms of their respective contracts. Income which has not been subject to class A PRSI (including other sources of income) attracts a PRSI liability in the normal way.

Guidance is now available in a new manual (Part 04-01-19) which outlines how income arising to Sub-Postmasters and Social Welfare (SW) Branch Managers is to be shown on Form 11 to ensure that

1. such income is not further charged to PRSI in the income tax assessment, and
2. other sources of income attract the appropriate PRSI liability.

The guidance also includes examples that illustrate the position.

29 January 2015