The Pay Related Social Insurance contributions component allows you to perform the tasks necessary to record, calculate, and pay PRSI. All the necessary information for PRSI calculation is stored in the PRSI Ireland (Infotype 0360) records.

It is important that strict records are kept of the amount of PRSI contributions paid by employees during the year.

The amount of PRSI contributions paid by an employee will determine whether the employee can claim state benefits during his or her working life and State Pension on retirement.

Information about the amount of PRSI contributions paid has to be submitted to the Revenue Commissioners at year-end. The amount of contributions paid together with the amount of the earnings on which the employee's PRSI was calculated is sent to the Revenue on a P35 diskette and on a P35 declaration.

The Revenue Commissioners uses unique numbers (instead of names) to track employees' contributions. This unique number is the Revenue and Social Insurance number (RSI), which is issued to every Irish resident.